Table of content
Sat Kartar Shopping IPO review
Sat Kartar Shopping IPO Review Introduction
Sat Kartar Shopping Ltd, a premier retailer specializing in premium Ayurvedic products. IPO opening from Jan 10 to Jan 14, 2025 with price band of ₹77 – ₹81.
Brief About Sat Kartar Shopping IPO
History of Sat Kartar Shopping IPO
History of Sat Kartar Shopping Limited
Incorporation:
- Sat Kartar Shopping Limited was originally incorporated as a private limited company named “Sat Kartar Shopping Private Limited” on June 29, 2012, under the Companies Act, 1956, with Corporate Identification Number (CIN) U52590DL2012PTC238241.
Conversion to Public Limited Company:
- The company transitioned to a public limited company following a special resolution passed by its members during an Extra Ordinary General Meeting held on May 15, 2021. The name was subsequently changed to “Sat Kartar Shopping Limited,” and a new certificate of incorporation was issued on July 12, 2021, reflecting this change, with the CIN updated to U52590DL2012PLC238241.
Summary of the business of Sat Kartar Shopping IPO
Sat Kartar Shopping Limited, incorporated in 2012 and converted to a public limited company in 2021, specializes in Ayurveda healthcare products. The company integrates traditional Ayurvedic knowledge with modern research to offer a diverse range of natural wellness solutions, focusing on specific therapeutic areas and lifestyle products. Operating primarily in the Direct-to-Consumer (D2C) segment, Sat Kartar sells its products through its own website, third-party e-commerce platforms, and TV marketing.
Business Verticals Sat Kartar Shopping IPO
- Specific Problem Led Niche Therapeutic Areas
- Lifestyle Led Curative Areas
Supplier concentration Sat Kartar Shopping IPO
Financial Year 2023-2024
(Amount in Thousands)
| Supplier | Amount | % Cost of Material Consumed |
| Top 1 | 29,837.44 | 32.23% |
| Top 3 | 73,012.74 | 78.87% |
| Top 5 | 86,643.65 | 93.59% |
| Top 10 | 91,068.86 | 98.37% |
Revenue breakup Sat Kartar Shopping IPO
Product wise break-up
(Amount in Thousands except Percentage)
| Details | FY 2024 | FY 2023 | FY 2022 | |||
| Amount | % of Bifurcation | Amount | % of Bifurcation | Amount | % of Bifurcation | |
| Specific Problem Led Niche Therapeutic Areas | 8,56,117.21 | 67.08% | 3,90,086.01 | 47.36% | 1,47,720.21 | 29.38% |
| Lifestyle Led | 4,18,053.80 | 32.76% | 3,28,607.81 | 39.90% | 2,02,109.90 | 40.20% |
| Spiritual | 2,075.67 | 0.16% | 1,04,938.09 | 12.74% | 1,52,895.84 | 30.41% |
Revenue contribution from Geography presence
(Amount in Thousands)
| State | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
| Amount | % of total revenue | Amount | % of total revenue | Amount | % of total revenue | |
| Tamil Nadu | 2,35,803.06 | 18.44% | 1,85,787.65 | 22.39% | 1,77,890.36 | 34.26% |
| Uttar Pradesh | 1,32,788.02 | 10.38% | 34,989.71 | 4.22% | 12,574.51 | 2.42% |
| Karnataka | 1,06,634.83 | 8.34% | 77,654.59 | 9.36% | 70,437.85 | 13.57% |
| Maharashtra | 1,01,767.69 | 7.96% | 42,574.82 | 5.13% | 12,336.59 | 2.38% |
| Andhra Pradesh | 91,177.91 | 7.13% | 64,257.22 | 7.74% | 46,174.47 | 8.89% |
| Total | 6,68,171.51 | 52.24% | 4,05,263.99 | 48.84% | 3,19,413.78 | 61.52% |
| Revenue from operation | 12,79,093.27 | 100.00% | 8,29,695.53 | 100.00% | 5,19,189.18 | 100.00% |
Industry Outlook of Health and Wellness Market
Global Health and Wellness Market
- Market Size: Expected to grow from USD 4,332 billion in 2023 to approximately USD 8,379 billion by 2033.
- CAGR: Projected growth rate of 7% from 2024 to 2033.
- Drivers:
- Increasing consumer spending on health and wellness products and services.
- Rising incidence of mental and physical illnesses, such as anxiety and depression, driving demand for wellness solutions.
Indian Health and Wellness Industry
- Market Growth: Anticipated to exhibit a CAGR of 5% from 2024 to 2032.
- Key Trends:
- Growing consumer awareness regarding nutritional diets and active lifestyles.
- Increased participation in physical activities, including yoga and fitness training.
- Rising popularity of wellness tourism, which includes activities like yoga retreats and holistic health experiences.
- Ayurvedic Products Market
- Global Market Size: Valued at USD 5,172.7 million in 2022, projected to reach USD 16,018.42 million by 2032, with a CAGR of 12%.
- Market Drivers:
- Increased consumer interest in natural and traditional remedies.
- Shift towards organic products as alternatives to synthetic chemicals and pharmaceuticals.
- Post-Pandemic Demand: The COVID-19 pandemic has heightened awareness and demand for Ayurvedic products, leading to a resurgence in market growth.
Indian Ayurvedic Products Market
- Market Value: Estimated at USD 7.65 billion in 2023, with robust growth expected at a CAGR of 18.4% through 2029.
- Cultural Significance: Ayurveda, with over 5,000 years of history, remains integral to India’s healthcare landscape, emphasizing natural remedies and holistic well-being.
- Consumer Trends:
- Increasing preference for natural wellness solutions among consumers.
- Growing acceptance of Ayurveda in both domestic and international markets.
Challenges and Opportunities
- Challenges:
- Compliance with changing regulatory policies in the health and wellness sector.
- Variability in product quality and standardization across the market.
- Opportunities:
- Expanding product lines to meet the rising demand for high-quality natural wellness products.
- Leveraging technology for better consumer engagement and product delivery.
Management and Share Holding pattern of Sat Kartar Shopping IPO
Sat Kartar Shopping IPO Promoters & Board of Directors
- The promoters of the Company are Mr. Manprit Singh Chadha, Mr. Pranav Singh Chadha, Ms. Simrati Kaur & M/s Ajooni Wellness Private Limited.
Sat Kartar Shopping IPO Board of directors
| Name | Category Designation |
| Mr. Ved Prakash | Executive Managing Director |
| Mr. Sanjay Kumar | Executive Director |
| Mr. Pranav Singh Chadha | Executive Director |
| Ms. Simrati Kaur | Executive Director |
| Ms. Richa Takkar | Non-Executive Non-Independent Director |
| Mr. Sunil Kumar Mehdiratta | Non-Executive Independent Director |
| Mr. Manoj Kumar Verma | Non-Executive Independent Director |
| Mr. Steve Austin Pereira | Non-Executive Independent Director |
Sat Kartar Shopping IPO Share Holding pattern
| Name of shareholder | Pre issue | Post issue |
| % of Issued Capital | % of Issued Capital | |
| Promoters | ||
| Ajooni Wellness Private Limited | 49.36% | 36.28% |
| Manprit Singh Chadha | 28.49% | 20.94% |
| Pranav Singh Chadha | 2.45% | 1.80% |
| Simrati Kaur | 0.18% | 0.13% |
| Sub Total | 80.48% | 59.15% |
| Promoter Group | ||
| Archana Chadha | 2.45% | 1.80% |
| Aryaman Singh Chadha | 2.45% | 1.80% |
| Amarjit Chadha | 0.26% | 0.19% |
| Paramjit Singh Chadha | 0.25% | 0.18% |
| Gurmeet Singh | 0.16% | 0.12% |
| Sub Total | 5.58% | 4.10% |
| Public | ||
| Public | 13.94% | 10.25% |
| IPO | – | 26.50% |
| Sub Total | 13.94% | 36.75% |
Sat Kartar Shopping IPO details
| Details | Information |
|---|---|
| IPO Dates | January 10, 2025 – January 14, 2025 |
| Price Band | ₹77 – ₹81 per share |
| Minimum Lot Size | 1,600 shares |
| Issue Size | ₹33.80 crore (Fresh Issue: ₹33.80 crore) |
| Listing Date | January 17, 2025 |
| Registrar | Skyline Financial Services |
| Lead Managers | Narnolia Financial Services |
| Anchor Investor Amount | ₹9.55 crore |
| Utilization of Proceeds | Acquisition costs, marketing and advertising expenses, capital expenditures, technology investments |
| Financial Performance (FY24) | Revenue: ₹127.90 crore, EBITDA: ₹10.24 crore, PAT: ₹6.30 crore |
| Product Portfolio | Premium Ayurvedic products for personal wellness |
| Customer Base | Direct-to-consumer (D2C) through own website and third-party e-commerce platforms |
Object of the issue
(In Lakhs)
| Particulars | Amount |
| Unidentified Acquisition (In India or Abroad) | 500 |
| Marketing and Advertisement | 1,100 |
| Capital Expenditures | 800 |
| Investment in Technology | 500 |
Sat Kartar Shopping IPO Financial Perfomance
Sat Kartar Shopping IPO KPI
(Amount in Thousands, except EPS, % and ratios)
| Particulars | Financial Year ended March 31st, 2024 | Financial Year ended March 31st, 2023 | Financial Year endedMarch 31st,2022 |
| Revenue from operations | 12,79,093.27 | 8,29,695.53 | 5,19,189.18 |
| EBITDA | 1,02,392.99 | 52,302.51 | 23,007.24 |
| EBITDA (%) Margin | 8.01% | 6.30% | 4.43% |
| ROCE (%) | 91.55% | 68.84% | 27.57% |
| Current Ratio | 1.01 | 0.71 | 1.27 |
| Operating Cash flow | 70,425.28 | 79,669.63 | 22,725.14 |
| PAT | 63,054.96 | 25,061.37 | 13,868.81 |
| ROE/ RoNW | 66.84% | 76.53% | 180.42% |
| EPS | 22.52 | 3.58 | 1.98 |
Sat Kartar Shopping IPO Assets & Liabilities
(Amount in Thousands)
| Particulars | March 31, 2024 | 31st March, 2023 | 31st March, 2022 |
| EQUITY AND LIABILITIES | |||
| Shareholder’s Funds | 94,333.44 | 32,748.49 | 7,687.12 |
| Non-Current Liabilities | 5,206.54 | 24,223.36 | 63,600.67 |
| Current Liabilities | 118,002.95 | 90,147.82 | 52,645.15 |
| TOTAL | 2,17,542.93 | 1,47,119.66 | 1,23,932.94 |
| ASSETS | |||
| Non-Current Assets | 98,044.70 | 82,772.15 | 56,999.46 |
| Current Assets | 119498.22 | 64347.5 | 66,933.48 |
| TOTAL | 2,17,542.93 | 1,47,119.66 | 1,23,932.94 |
Sat Kartar Shopping IPO Profit & Loss
(Amount in Thousands, except EPS, % and ratios)
| Particulars | Financial Year ended March 31st, 2024 | Financial Year ended March 31st, 2023 | Financial Year ended March 31st,2022 |
| Revenue from operations | 12,79,093.27 | 8,29,695.53 | 5,19,189.18 |
| EBITDA | 1,02,392.99 | 52,302.51 | 23,007.24 |
| EBITDA (%) Margin | 8.01% | 6.30% | 4.43% |
| PAT | 63,054.96 | 25,061.37 | 13,868.81 |
Sat Kartar Shopping IPO Cash Flow
(Amount in Thousands)
| Particulars | Financial Year ended on March 31, 2024 | Financial Year ended on March 31, 2023 | Financial Year ended on March 31, 2022 |
| Cash flow from investing activities | (26,116.12) | (35,120.48) | (7,817.37) |
| Cash flow from financing activities | (25,665.76) | (48,798.67) | (11,867.56) |
Sat Kartar Shopping IPO Capital structure
(Amount in thousands)
| Particulars | Pre Issue 31.03.2024 |
| Debt | |
| Short Term Debt | 12,592.28 |
| Long Term Debt | 5,206.54 |
| Total Debt | 17,798.82 |
| Shareholders’ Fund (Equity) | |
| Share Capital | 28,000.00 |
| Reserves & Surplus | 66,333.44 |
| Total Shareholders’ Fund (Equity) | 94,333.44 |
| Long Term Debt/Equity | 0.06 |
| Total Debt/Equity | 0.19 |
SWOT ANALYSIS
Strengths
- Established Brand: The company has developed a recognizable brand in the Ayurveda healthcare sector, which can attract and retain customers.
- Diverse Product Portfolio: Offers a wide range of Ayurvedic products, catering to various therapeutic areas and lifestyle needs, enhancing market appeal.
- Direct-to-Consumer Model: The D2C approach allows for better customer engagement, higher margins, and direct feedback from consumers.
- Growing Market Demand: Positioned in a rapidly growing health and wellness market, particularly in the Ayurvedic segment, which is gaining popularity among consumers seeking natural remedies.
Weaknesses
- Dependence on Third-Party Manufacturers: Reliance on external manufacturers for product production can lead to quality control issues and supply chain disruptions.
- Limited Experience in Public Markets: The management team consists of first-generation entrepreneurs with limited experience in managing a publicly listed company, which may pose governance challenges.
- High Marketing Costs: Significant expenditure on marketing and advertising may impact profitability, especially if campaigns do not yield expected results.
Opportunities
- Expansion Potential: Opportunities to expand product offerings and enter new markets, both domestically and internationally, particularly in regions with growing interest in Ayurveda.
- Technological Advancements: Investment in technology, such as app development and e-commerce platforms, can enhance customer experience and operational efficiency.
- Increasing Consumer Awareness: Growing awareness and preference for natural and organic products present a significant opportunity for growth in the Ayurvedic sector.
- Strategic Acquisitions: Potential to acquire complementary businesses or technologies that can enhance product offerings and market reach.
Threats
- Intense Competition: The health and wellness market is highly competitive, with numerous players vying for market share, which could pressure pricing and margins.
- Regulatory Changes: Changes in regulations related to health products, advertising, and taxation could impact operations and profitability.
- Economic Volatility: Economic downturns or fluctuations in consumer spending could adversely affect sales and revenue.
- Pandemic and Health Crises: Future pandemics or health crises could disrupt operations and affect consumer behavior, leading to potential financial losses.
Peer Comparison
| Name of the company | Face Value (Per Share) | CMP | EPS | P/E Ratio | PAT (Amount in Thousand) |
| Sat Kartar Shopping Limited | 10.00 | ₹81 | 22.52 | 3.60 | 63,054.96 |
| Jeena Sikho Lifecare Limited | 10.00 | 1390.00 | 27.84 | 50.53 | 6,92,063.00 |
| Kerala Ayurveda Limited | 10.00 | 300.00 | (1.47) | – | (27.05) |
| Particulars | Sat Kartar Shopping Limited | Kerala Ayurveda Ltd. | Jeena Sikho Lifecare Limited | ||||||
| Mar-24 | Mar-23 | Mar-22 | Mar-24 | Mar-23 | Mar-22 | Mar-24 | Mar-23 | Mar-22 | |
| Revenue from Operations | 12,79,093.27 | 8,29,695.53 | 5,19,189.18 | 6,76,213.00 | 5,91,240.00 | 5,57,991.00 | 32,44,089.00 | 20,38,963.00 | 14,64,532.00 |
| EBITDA | 1,02,392.99 | 52,302.51 | 23,007.24 | 44,432.00 | 45,582.00 | 75,843.00 | 9,29,877.00 | 4,60,773.00 | 1,81,245.00 |
| EBITDA Margin | 8.01% | 6.30% | 4.43% | 6.57% | 7.71% | 13.59% | 28.66% | 22.60% | 12.38% |
| PAT | 63,054.96 | 25,061.37 | 13,868.81 | -2,705.00 | 28,907.00 | 8,895.00 | 6,92,063.00 | 3,37,444.00 | 1,12,724.00 |
| PAT Margin | 4.93% | 3.02% | 2.67% | -0.40% | 4.89% | 1.59% | 21.33% | 16.55% | 7.70% |
| Net Worth | 94,333.44 | 32,748.49 | 7,687.12 | 3,21,636.00 | 1,45,326.00 | 1,12,754.00 | 19,22,479.00 | 12,57,996.00 | 3,65,552.00 |
Risks in Sat Kartar Shopping IPO Analysis
Business-Related Risks
- Dependence on Brand Recognition: The company’s success relies heavily on maintaining and enhancing its brand image. Any negative publicity or failure to meet customer expectations could adversely affect sales and reputation.
- Consumer Complaints and Litigation: Operating in the Direct-to-Consumer (D2C) segment exposes the company to potential consumer complaints and lawsuits, which could lead to financial liabilities and damage to brand reputation.
Operational Risks
- Reliance on Third-Party Manufacturers: The company does not own manufacturing facilities and relies on third-party manufacturers. Any disruptions in supply or quality issues could significantly impact operations and profitability.
- Inadequate IT Infrastructure: The company’s operations depend on robust IT systems. Any failure in these systems could disrupt business processes and affect customer service.
Financial Risks
- Negative Cash Flows: The company has experienced negative cash flows from investing and financing activities in the past, which may continue to affect its financial stability and growth prospects.
- Debt Obligations: The company has outstanding borrowings, and any inability to meet these obligations could lead to financial distress.
Market Risks
- Intense Competition: The health and wellness market, particularly the Ayurvedic segment, is highly competitive. Failure to effectively compete could result in loss of market share and reduced profitability.
- Economic Fluctuations: Economic downturns or changes in consumer spending patterns could adversely affect sales and revenue.
Regulatory Risks
- Compliance with Regulations: The company must comply with various regulations, including those related to health and safety, advertising, and product quality. Non-compliance could result in penalties and legal issues.
- Changes in Taxation Policies: Changes in tax laws, such as the Goods and Services Tax (GST), could impact the company’s financial performance and operational costs.
External Risks
- Pandemic and Health Crises: Events like the COVID-19 pandemic can disrupt operations, affect consumer behavior, and lead to significant financial losses.
- Natural Disasters and Political Instability: Natural disasters, civil unrest, or geopolitical tensions could adversely impact business operations and market conditions.
Management Risks
- Inexperience of Management Team: The current management team consists of first-generation entrepreneurs with limited experience in managing a publicly listed company, which may lead to governance and compliance challenges.
- Dependence on Key Personnel: The company relies heavily on its promoters and key management personnel. The loss of any key individual could adversely affect business operations and strategic direction.
Market Volatility Risks
- Price Fluctuations: The stock price may be subject to significant fluctuations due to market conditions, investor sentiment, and company performance, which could affect shareholder value.
Intellectual Property Risks
- Infringement Claims: The company may face claims of intellectual property infringement, which could lead to costly litigation and impact its operations.
Investment Risks
- Potential Dilution of Shareholding: Future equity issues or sales by significant shareholders could dilute existing shareholders’ ownership and adversely affect share prices.
Litigation involved in IPO
Sat Kartar Shopping IPO GMP
Sat Kartar Shopping IPO Allotment Details
- IPO allotment is expected on January 16, 2025 .
- To check Sat Kartar Shopping ipo allotment status, follow the steps below:
- Click on the Sat Kartar Shopping IPO Allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
On securing the allotment, you will receive the credit of equivalent shares in your Demat account.
FAQ in Sat Kartar Shopping Ltd’s IPO Review
What is Sat Kartar Shopping Ltd’s IPO date?
The IPO opens on January 10, 2025, and closes on January 14, 2025.
What is the price band for Sat Kartar Shopping Ltd’s IPO?
The price band is set between ₹77 to ₹81 per share.
What is the minimum lot size for Sat Kartar Shopping Ltd’s IPO?
The minimum lot size is 1,600 shares.
What is Sat Kartar Shopping Ltd’s financial performance for FY24?
The company reported revenue of ₹127.90 crore, EBITDA of ₹10.24 crore, and a profit after tax (PAT) of ₹6.30 crore,
What is the grey market premium (GMP) for Sat Kartar Shopping Ltd’s IPO?
The GMP is ₹10 per share, indicating a potential listing price of ₹91, which is 12.35% higher than the upper price band.
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