SHETHJI - Shreeji Global

📊 NSE: SHETHJI 🏢 Other Agricultural Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 10.19% to INR 650.74 Cr in FY25 (Provisional) from INR 590.59 Cr in FY24. Previously, revenue grew 25.49% from INR 470.63 Cr in FY23 to INR 590.59 Cr in FY24, driven by expansion into ground spices and flours.

Geographic Revenue Split

Exports accounted for 8.89% of total sales in FY25 (Provisional), with primary markets being UAE and Malaysia. The company has a presence in more than 20 countries.

Profitability Margins

Gross and operating margins improved due to a shift toward manufacturing. PAT margin improved to 1.69% in FY25 (Provisional) from 0.88% in FY24, supported by higher EBITDA and lower finance costs following term loan repayments.

EBITDA Margin

EBITDA margin rose to 2.86% in FY25 (Provisional), a 101 bps increase from 1.85% in FY24. This improvement was primarily driven by cost optimization and a decline in raw material costs.

Capital Expenditure

Historical CAPEX was directed toward establishing two manufacturing facilities in Kherva and Kuvadava (Rajkot) to transition from grading/sorting to manufacturing ground spices and flours. Planned CAPEX is not disclosed in absolute INR Cr.

Credit Rating & Borrowing

The company holds an 'IVR BBB-/Stable/IVR A3' rating assigned by Infomerics. Borrowing costs are reflected in finance costs which decreased in FY25 due to term loan repayments.

⚙️ Operational Drivers

Raw Materials

Spices, oilseeds, grains, pulses, and wheat (for Atta). Raw material costs are a significant portion of the cost structure, though specific % per item is not disclosed.

Import Sources

Imports accounted for 3.03% of total raw material purchases in FY25, sourced from UAE, Singapore, Sri Lanka, and Vietnam.

Key Suppliers

Sourced directly from farmers and aggregators through APMCs in Gondal and Rajkot, Gujarat.

Capacity Expansion

The company operates two manufacturing facilities in Kherva and Kuvadava. Recent expansion focused on ground spices and flour manufacturing to improve margins over traditional grading/sorting.

Raw Material Costs

Profitability is highly susceptible to raw material price fluctuations. EBITDA improvement in FY25 was specifically attributed to a decline in raw material costs.

Manufacturing Efficiency

Operating cycle stood at 26 days in FY25 (Provisional), reflecting operational efficiency despite an increase from 15 days in FY24.

Logistics & Distribution

Proximity to Mundra Port (approx. 250 km) enables fast and cost-effective international distribution.

📈 Strategic Growth

Growth Strategy

The company is transitioning from low-margin grading and sorting of whole seeds to higher-margin manufacturing of ground spices and flours. It leverages its brand 'SHETHJI' and white-label arrangements to diversify revenue streams.

Products & Services

Ground spices, whole spices, seeds, grains, pulses, and wheat flour (Atta).

Brand Portfolio

SHETHJI.

New Products/Services

Recent expansion into ground spices and flours contributed to a 10.19% revenue increase in FY25.

Market Expansion

Targeting international growth with current presence in 25 countries; majority of exports currently go to UAE and Malaysia.

Strategic Alliances

Utilizes white-label arrangements alongside its own 'SHETHJI' brand to maximize facility utilization.

🌍 External Factors

Industry Trends

The food processing industry is growing but remains fragmented. There is a trend toward value-added products like ground spices and branded flours which offer better margins than raw commodities.

Competitive Landscape

Highly competitive and fragmented, consisting of small, medium, and established players in the agro-processing sector.

Competitive Moat

Moat is based on geographic advantage; units are located within 30 km of major Gujarat APMCs and 250 km from Mundra Port, providing a sustainable cost advantage in sourcing and logistics.