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Company Overview
Empire Spices and Foods Limited started its journey from a small shop in the holy city of Nashik in Maharashtra. The sheer quality and the taste of the exotic spice blends soon became a favorite with the masses, necessitating the formation of a dedicated manufacturing unit to fulfill market demand. Today, this venture has become the stepping stone of the renowned brand of spices – “Rambandhu Masale”. Founded in 1994, Empire Spices & Foods Ltd manufactures a variety of spices. The company offers basic spices, blended spices, specialty products, pickles, papads, asafoetida, and premium blend spices. Empire Spices & Foods offers its services throughout India and also exports its products.
Operations and Financials
Location:
The company operates from Nashik in Maharashtra.
Capital and AGM:
The total paid-up capital is INR 4.84 crore. As per the Ministry of Corporate Affairs (MCA), the last reported Annual General Meeting (AGM) of the company was held on 19 September 2019.
Manufacturing and Marketing:
All products are manufactured and marketed by Empire Spices & Foods Ltd.
Products of the Company
- Basic Spices
- Blended Spices
- Specialty Products
- Pickles
- Papads
- Asafoetida
- Premium Blend Spices
Key Strengths of Empire Spices and Foods Limited
- Extensive Experience of Promoters:
With more than 40 years of experience in the spice business, the promoters have solidified the Rambandhu brand’s recall value and created enduring bonds with clients and suppliers. These elements should benefit the company over the medium term. - Healthy Financial Risk Profile:
Despite debt-funded capital expenditure, the capital structure remains comfortable with a healthy gearing of 0.48 times and a moderate net worth of Rs 54.80 crore as of March 31, 2021. The capital structure is anticipated to stay comfortable over the medium term. Debt protection metrics were above average, with interest coverage and net cash accrual to total debt ratios predicted to be 9.3 times and 0.63 times, respectively, in fiscal 2021. The financial risk profile should remain stable going forward. - Moderately Scaled Operations:
Revenue increased by over 10% annually over the last four fiscal years, reaching Rs 239.77 crore in fiscal 2021. Despite the Covid-19 pandemic, the topline increased by over 20% in fiscal 2021 due to the vital nature of the products, such as spices. Although revenue growth slowed in FY22, the moderate scale will be maintained.
Fundamentals
Promoters & Managements
| Name | Designation |
|---|---|
| Hemant Motilal Rathi | Chairman |
| Umesh L Rathi | MD |
| Anand Rathi | Director |
Profit & Loss Statement
| Metric | 2022 | 2023 |
|---|---|---|
| Revenue (in Rs. Crores) | 247 | 297.24 |
| Cost of Material Consumed | 140 | 187 |
| Gross Margins (%) | 43.32 | 37.04 |
| Change in Inventory | 0 | -14 |
| Employee Benefit Expenses | 21 | 25 |
| Other Expenses | 65 | 73 |
| EBITDA | 21 | 26 |
| Operating Profit Margin (OPM) (%) | 8.5 | 8.75 |
| Other Income | 0 | 0.24 |
| Finance Cost | 2 | 3.15 |
| D&A (Depreciation & Amortization) | 4 | 4.64 |
| EBIT | 17 | 21.36 |
| EBIT Margins (%) | 6.88 | 7.19 |
| PBT (Profit Before Tax) | 19 | 17.41 |
| PBT Margins (%) | 7.69 | 5.86 |
| Tax | 5 | 3.73 |
| PAT (Profit After Tax) | 14 | 13.68 |
| Net Profit Margin (NPM) (%) | 5.67 | 4.61 |
| EPS (Earnings Per Share) | 29.17 | 28.5 |
Financial Ratios
| Ratio | 2022 | 2023 |
|---|---|---|
| Operating Profit Margin (OPM) (%) | 8.5 | 8.75 |
| Net Profit Margin (NPM) (%) | 5.67 | 4.61 |
| Earning Per Share (Diluted) | 29.17 | 28.5 |
Assets
| Asset Category | 2022 | 2023 |
|---|---|---|
| Fixed Assets | 77 | 76 |
| CWIP | 0 | 15 |
| Investments | 0 | 0 |
| Trade Receivables | 5 | 7.78 |
| Inventory | 35 | 49.15 |
| Other Assets | 8 | 20.07 |
| Total Assets | 125 | 168 |
Liabilities
| Liability Category | 2022 | 2023 |
|---|---|---|
| Share Capital | 4.8 | 4.8 |
| FV | 10 | 10 |
| Reserves | 65 | 77.55 |
| Borrowings | 29 | 45 |
| Trade Payables | 14 | 26 |
| Other Liabilities | 12.2 | 14.65 |
| Total Liabilities | 125 | 168 |
Cash Flow Statement
| Category | 2022 | 2023 |
|---|---|---|
| Cash Flow from Operations | ||
| PBT | 19 | 17.41 |
| OPBWC | 26 | 25.18 |
| Change in Receivables | -1 | -2.12 |
| Change in Inventories | -7 | -14 |
| Change in Payables | -4 | 14 |
| Other Changes | -0.5 | -7.75 |
| Working Capital Change | -12.5 | -9.87 |
| Cash Generated From Operations | 13.5 | 15.31 |
| Tax | -4.5 | -4.5 |
| Cash Flow From Operations | 9 | 10.81 |
| Cash Flow from Investment | ||
| Purchase of PPE | -12 | -19 |
| Sale of PPE | 0 | 0.009 |
| Cash Flow From Investment | -12 | -18.99 |
| Cash Flow from Financing | ||
| Borrowing | 3 | 15 |
| Dividend | -0.7 | -0.72 |
| Equity | 0 | 0 |
| Others From Financing | -2 | -1.85 |
| Cash Flow from Financing | 0.3 | 12.43 |
| Net Cash Generated | -2.7 | 4.25 |
| Cash at the Start | 4 | 0.69 |
| Cash at the End | 1.3 | 4.94 |
Share Holding Pattern
| Category | 2022 | 2023 |
|---|---|---|
| Promoters | 80.03% | 80.08% |
| Others | 19.97% | 19.92% |
Frequently Asked Questions (FAQ)
Find answers to common questions, providing clarity and insights to address any queries on your mind.
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Share Details: Submit your Client Master Report.
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DIS (Delivery Instruction Slip): A DIS is a form used to authorize the transfer of shares from your Demat account.
Methods:
Offline DIS: Fill out a physical DIS form with details like the ISIN number, quantity, price of your Empire Spices & Food Ltd. shares, and our account information. Submit this to your broker.
Online DIS: Some brokers offer online DIS systems for easier transfers.
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Latest Funding: We consider the valuation from Empire Spices & Food Ltd. most recent funding round.
Comparable Companies: If there’s no recent funding, we analyze similar listed companies to estimate a fair value.
SEBI’s Influence: SEBI regulations do apply to some aspects of unlisted share trading, such as lock-in periods and transaction charges. However, there are no specific SEBI regulations for becoming an unlisted broker.
We aim for same-day transfer of Empire Spices & Food Ltd. Unlisted Shares to your Demat account after your payment is confirmed.
Tax Transition: Once your unlisted Empire Spices & Food Ltd. shares are listed and sold on an exchange, standard listed share tax rules apply.
Holding Period: Your holding period (for determining long-term vs. short-term capital gains tax) starts from the original unlisted purchase date.
