Empire Spices & Foods

Platform	Last Traded Price	Min Quantity

Strengths & Weaknesses

Strengths

Extensive Promoter Experience: With over four decades of experience in the spices industry, the promoters have established strong brand recognition for Rambandhu and built enduring relationships with customers and suppliers. These strengths continue to support the company’s operations. ESFL has a robust presence in Maharashtra and is steadily expanding into neighboring states.

Healthy Financial Risk Profile: The company maintains a solid financial position, reflected in a healthy gearing ratio of 0.56x and a moderate net worth of ₹81.65 crore as of March 31, 2023. Despite undertaking debt-funded capital expenditure, the gearing ratio is estimated to remain comfortable at 0.38x as of March 31, 2024, supported by consistent net worth growth. Debt protection metrics are strong, with an interest coverage ratio of 7.99x and a net cash accrual to total debt ratio of 0.38x in fiscal 2023. While these metrics saw slight moderation during the year, they remain at satisfactory levels.

Growing Revenue: ESFL has demonstrated robust financial performance, achieving a 3-year CAGR of approximately 18% in revenue. Simultaneously, the company's PAT has kept pace, growing at an impressive 3-year CAGR of about 21%.

Weaknesses

Exposure to Raw Material Price Volatility: The company relies on agricultural raw materials such as spices and mangoes, making it vulnerable to fluctuations in input costs due to inflation, monsoon variability, and government policies. In a competitive market, it is challenging to fully pass on increased costs to customers immediately, as seen in fiscal 2023, where inflation in agro-commodities impacted operating margins.

Industry Competition and Revenue Stability Risks: Operating in a fragmented and competitive industry, the company faces pressure to sustain revenue growth and maintain stable operating margins through varying business cycles. These factors remain critical for long-term performance.

Balance Sheet	FY2023	FY2022	FY2021	FY2020	FY2019
Equity Capital	4.84	4.84	4.84	4.84	4.84
Reserves	77.55	64.59	50.69	38.27	31.39
Total Equity	82.39	69.43	55.53	43.11	36.23
Borrowings	21.81	8.84	14.63	20.29	18.61
Provision	0	0	0	0	0
Other Non-Current Liabilities	4.52	5.29	4.92	2.91	2.08
Total Non current Liabilities	26.33	14.13	19.55	23.20	20.69
Borrowings	24.06	20.74	11.78	13.18	4.88
Other Current Liabilities	35.61	21.19	24.44	29.89	24.44
Total current Liabilities	59.66	41.93	36.22	43.07	29.32
Equity + Liabilities	168.39	125.49	111.31	109.38	86.24
Fixed Assets (incl. WIP)	92.19	77.70	69.67	64.03	54.76
Other Non Current Assets	4.57	1.72	1.54	3.30	0.98
Total Non Current Assets	96.77	79.42	71.21	67.33	55.74
Trade Receivables	7.78	5.66	4.28	3.35	4.56
Cash & Cash Equivalents	4.81	0.69	3.76	0.64	0.44
Other Current Assets	59.03	39.72	32.05	38.06	25.50
Total current Assets	71.62	46.07	40.09	42.05	30.50
Total Assets	168.39	125.49	111.31	109.38	86.24

Profit & Loss	FY2023	FY2022	FY2021	FY2020	FY2019
Revenue from Operations	297.59	247.55	239.60	182.27	173.00
Growth %	20.21%	3.32%	31.45%	5.36%	0
Operating Expenses	272.63	221.69	212.81	164.13	158.94
Growth %	22.98%	4.17%	29.66%	3.27%	0
Operating Profit	24.96	25.86	26.79	18.14	14.05
Op. Profit Margin %	8.39%	10.45%	11.18%	9.95%	8.12%
Other Income	0.25	0.22	0.23	0.35	0.51
Finance Costs	3.16	2.18	2.88	4.26	2.00
Depreciation	4.63	4.38	4.19	3.47	2.42
Exceptional Items	0.00	0.00	0.00	0.48	-0.77
Profit Before Tax	17.42	19.53	19.95	10.28	10.91
Tax	3.73	4.90	6.80	2.52	2.99
Tax %	1.25%	1.98%	2.84%	1.38%	1.73%
Profit After Tax	13.69	14.63	13.14	7.76	7.92
Growth %	-6.46%	11.32%	69.38%	-1.98%	0
PAT %	4.60%	5.91%	5.49%	4.26%	4.58%
Diluted EPS	28.27	30.22	27.15	16.03	17.43

Shareholding Pattern

Color	Shareholder	Holding
	Mr .Umesh Laxminarayan Rathi	9.70%
	Mr. Hemant Motilal Rathi	13.80%
	Mr . Anand Hemant Rathi	5.20%
	Mrs Aparna Umesh Rathi	14.20%
	Mrs Kanta Hemant Rathi	14.60%
	Mrs Pranjal Yash Rathi	6.20%
	Smt. Shanta Laxminarayan Rathi	5.70%
	Mrs Megha Anand Rathi	6.30%
	Others	24.30%

Fundamentals

Quick Insights

Growing Revenue: ESFL has demonstrated robust financial performance, achieving a 3-year CAGR of approximately 18% in revenue. Simultaneously, the company's PAT has kept pace, growing at an impressive 3-year CAGR of about 21%. Extensive Promoter Experience: With over four decades of experience in the spices industry, the promoters have established strong brand recognition for Rambandhu and built enduring relationships with customers and suppliers. These strengths continue to support the company’s operations. ESFL has a robust presence in Maharashtra and is steadily expanding into neighboring states. Healthy Financial Risk Profile: The company maintains a solid financial position, despite undertaking debt-funded capital expenditure, the gearing ratio is estimated to remain comfortable at 0.38x as of March 31, 2024, supported by consistent net worth growth. Debt protection metrics are strong, with an interest coverage ratio of 7.99x and a net cash accrual to total debt ratio of 0.38x in fiscal 2023.

Market Cap₹261.39 Cr

PE Ratio19.1

EPS₹28.27

Dividend Yield-

Book Value₹170.21 Cr

Debt/Equity0.55

Price/Book3.17

Price/Sales-

Industry PE-

Sales₹297.59 Cr

Profit After Tax₹13.69 Cr

Share Capital₹4.84 Cr

Shares Outstanding-

ISININE041101010

SectorFood and Beverages

Symbol-

About Company

Incorporated in 1994 by the Rathi family from Nashik, Maharashtra, Empire Spices and Foods Limited (ESFL) operates as a closely held public limited company. The company produces a variety of unblended spices, including chili powder, turmeric powder, and coriander powder, along with blended spices such as garam masala, pav bhaji masala, biryani masala, and chhole masala.

Quick Insights

Growing Revenue: ESFL has demonstrated robust financial performance, achieving a 3-year CAGR of approximately 18% in revenue. Simultaneously, the company's PAT has kept pace, growing at an impressive 3-year CAGR of about 21%. Extensive Promoter Experience: With over four decades of experience in the spices industry, the promoters have established strong brand recognition for Rambandhu and built enduring relationships with customers and suppliers. These strengths continue to support the company’s operations. ESFL has a robust presence in Maharashtra and is steadily expanding into neighboring states. Healthy Financial Risk Profile: The company maintains a solid financial position, despite undertaking debt-funded capital expenditure, the gearing ratio is estimated to remain comfortable at 0.38x as of March 31, 2024, supported by consistent net worth growth. Debt protection metrics are strong, with an interest coverage ratio of 7.99x and a net cash accrual to total debt ratio of 0.38x in fiscal 2023.

Market Cap₹261.39 Cr

PE Ratio19.1

EPS₹28.27

Dividend Yield-

Book Value₹170.21 Cr

Debt/Equity0.55

Price/Book3.17

Price/Sales-

Industry PE-

Sales₹297.59 Cr

Profit After Tax₹13.69 Cr

Share Capital₹4.84 Cr

Shares Outstanding-

ISININE041101010

SectorFood and Beverages

Symbol-

About Company

Strengths

Weaknesses

Annual Reports

FY FY FY

Balance Sheet	FY2023	FY2022	FY2021	FY2020	FY2019
Equity Capital	4.84	4.84	4.84	4.84	4.84
Reserves	77.55	64.59	50.69	38.27	31.39
Total Equity	82.39	69.43	55.53	43.11	36.23
Borrowings	21.81	8.84	14.63	20.29	18.61
Provision	0	0	0	0	0
Other Non-Current Liabilities	4.52	5.29	4.92	2.91	2.08
Total Non current Liabilities	26.33	14.13	19.55	23.20	20.69
Borrowings	24.06	20.74	11.78	13.18	4.88
Other Current Liabilities	35.61	21.19	24.44	29.89	24.44
Total current Liabilities	59.66	41.93	36.22	43.07	29.32
Equity + Liabilities	168.39	125.49	111.31	109.38	86.24
Fixed Assets (incl. WIP)	92.19	77.70	69.67	64.03	54.76
Other Non Current Assets	4.57	1.72	1.54	3.30	0.98
Total Non Current Assets	96.77	79.42	71.21	67.33	55.74
Trade Receivables	7.78	5.66	4.28	3.35	4.56
Cash & Cash Equivalents	4.81	0.69	3.76	0.64	0.44
Other Current Assets	59.03	39.72	32.05	38.06	25.50
Total current Assets	71.62	46.07	40.09	42.05	30.50
Total Assets	168.39	125.49	111.31	109.38	86.24

Profit & Loss	FY2023	FY2022	FY2021	FY2020	FY2019
Revenue from Operations	297.59	247.55	239.60	182.27	173.00
Growth %	20.21%	3.32%	31.45%	5.36%	0
Operating Expenses	272.63	221.69	212.81	164.13	158.94
Growth %	22.98%	4.17%	29.66%	3.27%	0
Operating Profit	24.96	25.86	26.79	18.14	14.05
Op. Profit Margin %	8.39%	10.45%	11.18%	9.95%	8.12%
Other Income	0.25	0.22	0.23	0.35	0.51
Finance Costs	3.16	2.18	2.88	4.26	2.00
Depreciation	4.63	4.38	4.19	3.47	2.42
Exceptional Items	0.00	0.00	0.00	0.48	-0.77
Profit Before Tax	17.42	19.53	19.95	10.28	10.91
Tax	3.73	4.90	6.80	2.52	2.99
Tax %	1.25%	1.98%	2.84%	1.38%	1.73%
Profit After Tax	13.69	14.63	13.14	7.76	7.92
Growth %	-6.46%	11.32%	69.38%	-1.98%	0
PAT %	4.60%	5.91%	5.49%	4.26%	4.58%
Diluted EPS	28.27	30.22	27.15	16.03	17.43

Shareholding Pattern

Color	Shareholder	Holding
	Mr .Umesh Laxminarayan Rathi	9.70%
	Mr. Hemant Motilal Rathi	13.80%
	Mr . Anand Hemant Rathi	5.20%
	Mrs Aparna Umesh Rathi	14.20%
	Mrs Kanta Hemant Rathi	14.60%
	Mrs Pranjal Yash Rathi	6.20%
	Smt. Shanta Laxminarayan Rathi	5.70%
	Mrs Megha Anand Rathi	6.30%
	Others	24.30%

Board of Directors

Mr. Hemant M. RathiChairman

Mr. Umesh L. RathiManaging Director

Mr. Sharad D. BedmuthaDirector

Mr. Anand H. RathiDirector

Mr. Dnyaneshwar M. BachhavDirector

Mr. Avinash D. JoshiIndependent Director

Mr. Vilas V. ShindeIndependent Director

Senior Management

Mr. Umesh L. RathiManaging Director