Vandan Foods Limited, established in 2013 and based in Ahmedabad, Gujarat, is a fast-growing Indian food processing company specializing in the production and marketing of a variety of food products including ready-to-cook, ready-to-eat, and frozen food items. The company has built a strong presence through its own brands and private label manufacturing. Vandan Foods IPO is aiming to raise ₹30.36 crore through the issuance of 26,40,000 equity shares at a fixed price of ₹115 per share.
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Expert Opinions
Market sentiment for the Vandan Foods IPO is cautiously optimistic, reflecting strong interest in SME IPOs and the company’s impressive recent financial performance, with revenue surging from ₹11.59 crore in FY2023 to ₹48.73 crore in FY2024. The company’s strengths include a diversified product portfolio, rapid revenue and profit growth, and a focus on both domestic and export markets in the food and agro-processing sectors. However, risks such as dependence on a few large clients, raw material price volatility, and stiff competition in the processed foods industry could pose challenges.
The Vandan Foods IPO valuation analysis for FY2024 is underpinned by a robust Return on Equity (ROE) of 45.41%, a Return on Capital Employed (ROCE) of 37.33%, and a Net Asset Value (NAV) of ₹16.62, indicating high profitability and efficient capital utilization. For long-term investors, Vandan Foods’ ability to sustain growth, expand its product range, and capitalize on the rising demand for convenience foods will be crucial to unlocking value, provided it can navigate sector risks and maintain operational efficiency.
Investor Considerations
Investors evaluating the Vandan Foods IPO should first review the company’s performance and fundamentals: Vandan Foods has demonstrated remarkable growth, with revenue rising from ₹1.61 crore in FY2022 to ₹48.73 crore in FY2024, and profit after tax turning positive and reaching ₹2.64 crore in FY2024, reflecting strong operational execution and scalability. The sector outlook is positive, driven by rising demand for castor oil and its derivatives in cosmetics, pharmaceuticals, and agriculture, with the global castor oil market projected to grow at a steady CAGR.
The Vandan Foods IPO valuation for FY2024 features a price-to-book value of 6.92, a PAT margin of 5.43%, and an EBITDA margin of 7.48%, indicating premium pricing but improving profitability metrics. Growth prospects are supported by expansion plans and a diversified customer base, though risks include dependence on a few key customers, raw material price volatility, and regional concentration in Gujarat. Short-term investors may target listing gains, while long-term investors should focus on the company’s ability to sustain growth, manage risks, and capitalize on sector tailwinds for sustainable returns.
| Date | GMP | Trend |
|---|---|---|
| 06 Jul 2025 17.08 | ₹00 | --- |
| 05 Jul 2025 10.28 | ₹00 | --- |
| 04 Jul 2025 10.39 | ₹00 | --- |
| 02 Jul 2025 13.38 | ₹00 | Down |
| 29 Jun 2025 10.53 | ₹5 | --- |
| 28 Jun 2025 16.00 | ₹5 | Up |
| 27 Jun 2025 13.24 | ₹00 | --- |
| 26 Jun 2025 11.22 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Vandan Foods IPO’s listing performance. With a final GMP of ₹0, it indicated a flat listing around the issue price of ₹115. However, the stock listed higher at ₹125, delivering a gain of 8.70%. This resulted in a prediction error of 8.70%, where the GMP failed to anticipate the positive listing direction, reflecting weak reliability in this case.
Vandan Foods IPO Current GMP is ₹00.
Vandan Foods IPO Expected Returns is 0.00%.
Vandan Foods IPO estimated listing price is ₹115.