Is Sacheerome IPO Good or Bad - Detailed Review

Sacheerome Limited is kicking off its initial public offering, which will be open from June 9, 2025, to June 11, 2025. While considering applying for this IPO, certain questions may arise in your mind, including whether the Sacheerome IPO is good or bad, whether it is worth investing in this IPO, and so on. 

This article offers a comprehensive Sacheerome IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

Sacheerome IPO Review

Sacheerome Limited, a B2B fragrance and flavour manufacturer, has delivered strong financial performance, with revenue growing from Rs. 70.49 crore in FY23 to Rs. 107.53 crore in FY25, and net profit rising from Rs. 5.94 crore to Rs. 15.98 crore. The company posted a robust ROE of 29.60% and ROCE of 33% in FY25, highlighting efficient resource utilization.

However, the business faces key risks, including high customer concentration—nearly 50% of revenue comes from its top five clients—and over 90% dependence on the fragrance segment, making it vulnerable to sector-specific slowdowns. Intense competition and industry consolidation may also pressure margins and market share.

With an attractive valuation at a PE of 10.23 compared to peers like S H Kelkar, the IPO offers potential for investors seeking exposure to a high-growth, niche segment within specialty chemicals. That said, investors should carefully weigh the company’s concentration risks and execution challenges against its expansion plans and growth prospects before making a decision.

Company Overview of Sacheerome IPO

Sacheerome Limited was founded in 1992 by Mr. Manoj Arora, a third-generation entrepreneur with over four decades of experience in the fragrance and flavour industry. The company began its journey as a fragrance manufacturer and later diversified into flavours in 2014, establishing a dedicated unit with a team of skilled flavourists, an application centre, and a state-of-the-art R&D facility.

Today, Sacheerome operates as a B2B partner, catering to leading food and non-food FMCG companies across India and in several international markets. Its product offerings span a wide range of industries.

On the fragrance side, Sacheerome serves segments including personal care and wash, body care, hair care and wash, fabric care, home care, baby care, fine fragrance, air care, pet care, men’s grooming, hygiene, and wellness. In the flavours segment, its solutions are used in beverages, bakery, confectionery, dairy products, health and nutrition, oral care, shisha, meat products, dry flavours, seasonings, and more.

The company operates through its manufacturing facility in New Delhi, with an annual production capacity of 760,000 kg. This production capability is backed by Sacheerome’s R&D team, which comprises 54 specialists with expertise in fragrance and flavour design, driven by strong market-focused innovation.

Industry Overview of Sacheerome IPO

Indian Fragrances Market 

India, with its deep-rooted olfactory traditions dating back to ancient times, is witnessing a rising demand for natural and organic fragrances as consumers move away from synthetic options. The country’s fragrance market is expected to grow at a CAGR of 14.50% from 2024 to 2032, fueled by increasing disposable incomes, heightened focus on personal grooming, and the influence of global beauty trends amplified by social media.

Indian Flavours Market

The Indian flavours market is on a steady growth path, fueled by rising demand for packaged, ready-to-eat foods, a rapidly expanding food processing sector, and growing use of flavoring in bakery items, confectioneries, and beverages, further boosted by the influence of Western food trends. According to IMARC Group, the market reached Rs. 4,287 Crore in 2023 and is expected to grow at a CAGR of 7.1%, reaching Rs. 8,100 Crore by 2032.

Financial Overview of Sacheerome IPO

Sacheerome Limited has showcased consistent growth in its financials in the past three financial years. For FY25, the company reported a revenue of Rs. 107.53 crore, growing from Rs. 70.49 crore in FY23. The revenues have also been accompanied by increasing net profits, increasing from Rs. 5.94 crores in FY23 to Rs. 15.98 crores in FY25.

Adding on to the increasing revenue and profits, the company has also managed to increase its PAT from 8.50% in FY23 to 14.86% in FY25, increasing cost efficiency in the growing business. 

Furthermore, the company’s ROE and ROCE have also seen a growing trajectory, with the metrics standing at 29.60% and 33%, respectively, in FY25. This indicates that the company has delivered the best returns to the shareholders and has also optimally used its overall resources. 

Strengths and Risks of Sacheerome IPO

Let’s dive into the strengths and weaknesses to assess if the Sacheerome IPO is good or bad for investors

Strengths  

• The company has a strong sales and marketing strategy driven by global insights, engaging content, personalized outreach, and a strong presence at key industry exhibitions.

• The company leverages new-age technologies like Sach/Maxicaps, Sach/Veda, Sach/Odocon, and Sach/Booster to enhance fragrance delivery, differentiate its product offerings, and stay ahead of the competition.

• The company’s strong ingredient expertise and sourcing network enable the timely procurement of quality raw materials at competitive rates, ensuring smooth manufacturing and prompt delivery.

Risks

• The company relies on a few key customers, with the top five contributing 49.26% in FY25, 45.08% in FY24, and 45.90% in FY23. This dependency poses a risk if major clients reduce or cancel orders.

• The company operates in a highly competitive and consolidating fragrance and flavour industry, which may lead to pricing pressures and a potential loss of market share.

• The company generates over 90% of its revenue from the fragrance segment. A decline in this sector could significantly affect its overall financial performance.

Strategies of Sacheerome IPO

•  The company is setting up a modern manufacturing facility in YEIDA, Uttar Pradesh, with production expected by Q4 FY2026. This Rs. 13,792.14 lakh investment will enhance capacity and efficiency, supporting future growth.

• To maintain a competitive edge in the FMCG sector, the company is strengthening its innovation platform by aligning R&D closely with Sales & Marketing. This strategy supports the development of cutting-edge, customer-centric products based on evolving market trends.

• As part of its international growth focus, Sacheerome is expanding its R&D and sales capabilities to better serve the Middle East, particularly the Gulf Cooperation Council (GCC) region, reinforcing its presence in high-potential global markets.

Sacheerome IPO Vs Peer

Let’s conduct a peer comparison to assess whether it’s worth investing in the Sacheerome IPO

Source: RHP of the company

When you look at the image above, you can see that Sacheerome Limited is significantly smaller than its peer, S H Kelkar Limited. However, Sacheerome showcases a better probability with its EPS standing at Rs. 9.74 while S H Kelkar Limited has an EPS of Rs. 5.4. Sacheerome Limited also reported a RONW of 25.78% while its larger peer only reported a RONW of 5.75%.

If we consider the upper price band (Rs. 102) of the IPO, Sacheerome Limited stands at a PE of 10.23, making it cheaper than its peer. This makes Sacheerome's IPO an attractive investment opportunity with the potential to grow over the long term, considering its growth trajectory

Objectives of the Sacheerome IPO 

1. The funds raised through the IPO will be mainly used towards the establishment of a new manufacturing facility at Gautam Buddha Nagar, UP.

2. General Corporate Purpose

Sacheerome IPO Details

Here are the Sacheerome Limited IPO details:

IPO Dates

The IPO will be open for subscription from June 9, 2025, to June 11, 2025. The allotment of shares to investors will take place on June 12, 2025, and the company will be listed on the NSE SME on June 16, 2025.

IPO Issue Price

Sacheerome Limited is offering its shares at a price band of Rs.96 to Rs.102 per share. Investors need to purchase a minimum of 1,200 shares per lot, meaning an investment of Rs. 1,22,400 per lot is required if you are bidding at the upper price band for the IPO.

IPO Size

The total issue size of Sacheerome Limited IPO is Rs. 61.62 crore. The total issue size completely comprises fresh issue, which means the entire money raised will be used entirely by the business.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on June 12, 2025, through the registrar's website or their stockbroker platform.

IPO Listing Date

The shares of Sacheerome Limited will be listed on the NSE SME on June 16, 2025.

IPO Application Link

Open a demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Sacheerome IPO