💰 Financial Performance

Revenue Growth by Segment

The Company reported significant growth across its two primary segments: Manufacturing (Hydrated Lime) saw a 77.8% increase in value and 104.5% in volume, while the Trading & Distribution of feed supplements grew 51.6% in value and 54.4% in volume.

Geographic Revenue Split

The Company operates a manufacturing facility in Dahej, Gujarat, and has recently diversified into export markets to support overall growth, though specific regional percentage splits are not disclosed.

Profitability Margins

The Net Profit Ratio remained stable at 1% (0.01) for FY 2024-25, as sales margins were unaffected. Return on Capital improved from 9.73% in FY 2023-24 to 12.32% in FY 2024-25.

EBITDA Margin

Not explicitly disclosed; however, the Net Profit Ratio is 1% and the Return on Capital is 12.32%, indicating positive core profitability despite a loss of INR 0.43 Cr (Rs. 42.69 Lakhs) in its subsidiary.

Capital Expenditure

Historical CapEx includes the acquisition of subsidiary Shivam Chemicals And Minerals Private Limited on June 17, 2022, with total assets of INR 19.58 Cr (Rs. 1,958.03 Lakhs) as of March 31, 2025.

Credit Rating & Borrowing

The Company has been sanctioned working capital limits exceeding INR 5 Cr. The Debt-Equity Ratio increased from 0.0102 in 2024 to 0.0776 in 2025 due to increased outstanding debt.

⚙️ Operational Drivers

Raw Materials

Key raw materials include feed supplements and inputs for Hydrated Lime manufacturing (typically limestone/quicklime), though specific cost percentages per material are not disclosed.

Import Sources

Manufacturing operations are centralized in Dahej, Gujarat, India. The company has also entered export markets for finished products.

Capacity Expansion

The Company currently has an installed manufacturing capacity of 60,000 MT per annum for Hydrated Lime at its Dahej, Gujarat facility.

Raw Material Costs

Raw material price fluctuations are cited as a key dependency; however, specific YoY cost change percentages are not disclosed.

Manufacturing Efficiency

Manufacturing volume grew 104.5% YoY, indicating a significant improvement in capacity utilization and operational scaling.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through diversification into new product assortments, entry into export markets, and expanding the client base across various industrial sectors and verticals.

Products & Services

The company sells Hydrated Lime, animal feed supplements, and allied chemical products.

Brand Portfolio

Shivam Chemicals Limited (formerly Sun Organosys Private Limited).

New Products/Services

The company is developing new products aiming at various sectors to improve the depth of industry engagement.

Market Expansion

Market expansion involves increasing reach across sectors and entering international export markets.

Market Share & Ranking

Not disclosed; the company notes India is one of the largest feed producers globally.

Strategic Alliances

The company operates a 100% subsidiary, Shivam Chemicals And Minerals Private Limited.

🌍 External Factors

Industry Trends

The Indian animal feed industry is evolving with a focus on improved feeding practices and proactive government reforms, which the company is positioning for through capacity utilization and product diversification.

Competitive Landscape

Operates in a highly competitive atmosphere with rivals that may have superior financial and technical resources.

Competitive Moat

The company's moat is built on its own inventory management, promoter experience, and accreditation with various awards, though it faces threats from competitors with greater resources.

Macro Economic Sensitivity

Highly sensitive to monsoon performance and government reforms/liberalization in the agricultural and industrial sectors.

Consumer Behavior

Increasing demand for domestic services and industrial feed supplements is driving volume growth.

Geopolitical Risks

Operations are subject to global economic conditions affecting supply and demand, as well as potential epidemic/pandemic disruptions.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI (LODR) Regulations 2015, and specific industrial standards for chemical manufacturing.

Taxation Policy Impact

The company is subject to the Income Tax Act, 1961 and Goods and Service Tax (GST) regulations.

Legal Contingencies

The Company reported that it does not have any pending litigation as of March 31, 2025, that would impact its financial position.

⚠️ Risk Analysis

Key Uncertainties

Key risks include climatic conditions (monsoons) impacting demand, raw material price volatility, and potential discrepancies in inventory physical verification.

Geographic Concentration Risk

Manufacturing is concentrated in Dahej, Gujarat, making the company sensitive to regional economic and climatic conditions.

Third Party Dependencies

The company has provided guarantees of INR 5.08 Cr (Rs. 507.98 Lakhs) and loans of INR 7.50 Cr (Rs. 750 Lakhs) to its subsidiary, indicating significant intra-group dependency.

Technology Obsolescence Risk

Not disclosed; the company focuses on traditional chemical manufacturing and trading.

Credit & Counterparty Risk

Trade Receivables Turnover Ratio is 10.77, showing stable collection efficiency compared to 10.05 in the previous year.