Ganesh Consumer Products IPO: Here is how the FMCG player fares against its peers

The IPO market is hot and buzzing with IPOs as nearly 8 IPOs live on Tuesday. Four new IPOs go live today, which include names like Anand Rathi Share & Stock Brokers, Ganesh Consumer Products, Seshaasai Technologies Ltd, Jaaro Industries and Solarworld Energy Solutions. While the GK Energy and Satvik Green Energy IPOs are closing today.

Out of the eight IPOs live today, Ganesh Consumer Products is the only one from the fast-moving consumer space. The company is headquartered in Kolkata and sells wheat-based derivatives like maida, sooji, and dalia. The company is also the third largest brand of packaged wheat flour and the largest brand of wheat-based derivatives.

Revenue

In terms of the topline, the total revenue from operations for Ganesh Consumer Products stood at ₹610 crore, which grew at an 18% CAGR from 2023. On the other hand, the other peers like Patanjali Foods, Bikaji Foods, Gopal Snacks, and Prataap Snacks have a topline of ₹31,254 crore, ₹1,996 crore, and ₹1,394 crore, respectively. However, their topline has grown in the range of 4% to 5% only during the 2023-25 period. In terms of topline growth, Ganesh Consumer Products' growth has outperformed its peers by a wide margin. However, not all product categories of the company are comparable to its peers.

Operational efficiency

In terms of operational efficiency, the company’s EBITDA (earnings before interest, taxes, depreciation and amortisation) stood at ₹73.2 crore, which grew at 14.2% CAGR over 2023-25. Also, the EBITDA margin for the company stood at 8.6% for FY25, which is the highest amongst its peers. Patanjali Foods had EBITDA of ₹1,945 crore, followed by Bikaji Foods at ₹328 crore, Gopal Snacks at ₹10.8 crore and Prataap Snacks at ₹23.2 crore. On the EBITDA margin front, only Bikaji Foods had a higher margin of 12.7% for FY25. While Prataap Snacks, Gopal Snacks have low to negligible EBITDA margins for FY25.

Bottomline

On the bottom line front, the profit after tax for Ganesh Consumer Products stood at ₹35 crore as compared to ₹27.1 crore in FY23. While it's amongst its peers, Patanjali Foods, Bikaji Foods, and Gopal Snacks are the companies with positive bottom lines at ₹1300 crore, ₹194 crore and ₹18.9 crore. Prataap Snacks reported a net loss of ₹34 crore in the same period. In comparison to its peers, Ganesh Consumer Products has performed better in terms of profitability, considering its scale and area of business.

In summary, Ganesh Consumer Products has shown strong topline growth with improved operational efficiency and robust bottom-line growth. Apart from the above key profit and loss metrics, the company’s price-to-earnings ratio post IPO is expected at 36.7x, which is lower than the industry average of 38x.