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Quanto Agroworld IPO

₹31.02 Cr · Fresh Issue · Specialty Chemicals

Price Band
₹67
Lot: 2000 shares (₹134,000)
GMP (Grey Market)
No GMP data yet
Issue Size
₹31.02 Cr
Fresh Issue
Market Cap
₹117.16 Cr
At upper band
P/E Ratio
10.28x
Listing Date
22nd Sep 2026
BSE & NSE
IPO Timeline
Opens
15th Sep 2026
Closes
17 Sep 2026
📋
Allotment
18 Sep 2026
Refund
21 Sep 2026
📈
Listing
22nd Sep 2026
📄 Official Docs DRHP ↗
Our Analysis — Key Points
✓ Strength
Exceptional valuation discount to peers
At 10.28x P/E against a 26x sector midpoint, the company trades at 0.4× the chemicals/agrochemicals benchmark—a rare 60% discount. This valuation floor provides downside protection even if growth moderates, and leaves room for re-rating as the company scales.
✓ Strength
Strong profitability and capital efficiency
Net profit margin of 20.8% and EBITDA margin of 29.54% exceed typical specialty chemicals norms. ROCE of 25.62% and D/E of 0.16x signal efficient capital deployment and minimal financial risk, supporting sustainable dividend potential.
✓ Strength
Accelerating revenue growth trajectory
Revenue surged 61% over two years (₹15.6 Cr to ₹40.4 Cr), driven by farm expansion and distillation capacity. PAT CAGR of 24.9% demonstrates operating leverage, though below revenue growth, indicating margin expansion opportunity as scale increases.
⚠ Risk
Significant promoter stake dilution
Promoter holding drops from 61.49% to 45.21% post-issue, crossing below the 50% comfort threshold for retail investors. This 16-point dilution raises governance and decision-making concerns, particularly given the SME listing status and smaller institutional oversight.
⚠ Risk
Large capex execution and farm expansion risk
₹15.23 Cr (49% of proceeds) is earmarked for farm expansion—a capital-intensive, operationally complex initiative outside core distillation. Delays, cost overruns, or lower-than-expected yields could pressure returns and delay profitability targets.
⚠ Risk
SME liquidity and scale constraints
At ₹117 Cr market cap, the company remains micro-cap with limited institutional coverage and trading liquidity. SME listings face higher delisting risk and lower exit optionality for retail investors if growth stalls or execution falters.
₹ Valuation
Valuation anchored well below sector norms
P/E of 10.28x represents 0.4× the 26x sector midpoint for chemicals/agrochemicals (20–32x range). Even at 1.0× midpoint (26x), the stock would imply ₹218 Cr market cap—an 86% upside—making current pricing attractive for growth-focused investors.
👁 Watch
Monitor farm expansion capex execution
Track quarterly capex spend, farm yield metrics, and timeline adherence on the ₹15.23 Cr farm expansion project. Any material delays or cost overruns should trigger a reassessment of growth assumptions and return on invested capital.
Top Analyst Reviews
Analyst / Firm Rating Known For Review
IPO India Hub
Our independent review
Subscribe Original analysis based on DRHP & public financials This page
Dilip Davda
Chittorgarh.com
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Capital Market (CM Rating)
CapitalMarket.com
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ICICI Securities
ICICIdirect Research
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External links go to each platform's IPO section — search for "Quanto Agroworld" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.

Company Snapshot
Revenue ₹40.35 Cr
Net Profit ₹8.38 Cr
Industry Specialty Chemicals
Issue Type Fresh Issue
Frequently Asked Questions
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