Subscribe to Annapurna Swadisht: Arihant Capital

Arihant Capital IPO report on Annapurna Swadisht

Incorporated in 2015, Annapurna Swadisht Ltd (ASL) is one of the largest FMCG players, and one of the fastest growing impulse packaged snack companies in Eastern India. The company manufactures and sells snacks and food products, namely, Fryums, cakes, candies, namkeen, chips and Gohona Bori, and has a daily sales volume of 12 Lakh packets. It has a large presence across Tier 2 and 3 cities, and rural areas. The MRP ranges from INR 1 for candies to INR 5 for Snacks. As of FY22, 96% of ASLs revenue comes from fryum sales (93% in Q1FY23), and 69% of the revenue as of FY22 comes from the West Bengal region.

Valuation and Outlook

ASL has demonstrated stellar revenue growth at a 111% 3 year CAGR. It is well placed in its target markets with little threat from bigger players. Considering its active product management activities and plans for aggressive distributor network growth, the company is well poised to grow its market share in the years to come. ASL is currently valued at a P/E of 20x based on its FY22 EPS of INR 3.44. We recommend that investors subscribe for long term.