Subscribe for Orkla India Ltd IPO; Anand Rathi

Anand Rathi, Orkla India Ltd

Orkla India Limited is a multi-category Indian food company with operations spanning several decades, offering a diverse range of products that cater to every meal occasion, from breakfast and lunch to dinner, snacks, beverages and desserts. In Fiscal 2024, they were one of the top four companies in terms of revenue from operations among select leading spices and convenience food peers. Their products, under the brands MTR and Eastern, are crafted with authenticity and tradition, and are deeply rooted in the South Indian culinary heritage. The key product categories they offer are Spices (comprising blended and pure spices), and Convenience Foods (comprising ready-to-cook (“RTC”), ready-to-eat (“RTE”) foods and Vermicelli, among others). In Spices, their key products include: (a) Sambar Masala, Chicken Masala, Puliogare Masala, Rasam Masala and Meat Masala, among others, in blended spices; and (b) Chilli, Kashmiri Chilli, Turmeric, Coriander and Cumin, among others, in pure spices. Their Convenience Foods products simplify the cooking process and enable quick meal preparation through products such as Gulab Jamun mix, Rava Idli mix, 3-Minute Poha and Dosa mix. Their portfolio comprises approximately 400 products across these categories, as of June 30, 2025, and they sold approximately 2.3 million units on average every day as of June 30, 2025. The company, through its brands MTR and Eastern, has a deep understanding of local flavours and a strong commitment to quality that has resulted in their current scale, particularly in the core markets of Karnataka, Kerala, Andhra Pradesh and Telangana.

Valuation and Outlook

At the upper price band company is valuing at P/E of 31.5x to its FY26 annualized earnings and market cap of ₹ 1,00,000 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “SubscribeLong Term” rating to the IPO.