🚨 Manorama Industries: 69% Revenue Growth + CBE Opportunity

Manorama Industries delivered a breakout FY25, driven by capacity expansion, exports and growing demand for sustainable specialty fats. 📊 FY25 HIGHLIGHTS • Revenue: ₹771 Cr | +69% YoY • EBITDA: ₹191 Cr | 2.6x YoY • EBITDA Margin: 24.8% • PAT: ₹112 Cr | ~3x YoY • ROCE: 33% • Export contribution: ~73% 🔥 WHAT’S DRIVING THE STORY? → Rising global demand for plant-based & sustainable ingredients → Cocoa butter price volatility boosting demand for Cocoa Butter Equivalents (CBE) → 25,000 MTPA Birkoni facility now commercialised → Backward integration across West Africa → “Waste-to-Wealth” model using forest seeds and by-products → New opportunities in Palm Mid Fraction & bakery shortenings 🌍 The company has also established subsidiaries across key African sourcing regions to strengthen raw-material security and quality control. 🎯 Management is targeting ₹1,050+ Cr revenue for FY26. ⚠️ KEY RISK TO WATCH A major monitorable is related-party sourcing. Purchases from promoter-linked Manorama Africa Limited stood at around ₹230 Cr, accounting for ~44% of standalone purchases. The arrangement is approved and stated to be at arm’s length, but the concentration creates a governance and transfer-pricing risk worth monitoring. Another point: KMP remuneration rose ~147% YoY, significantly faster than median employee pay, although it was linked to the sharp improvement in profitability. 💡 ANALYST VIEW Manorama is evolving from a niche forest-seed processor into a global specialty fats & ingredients platform. Strong revenue growth, expanding margins, new capacity and the CBE opportunity create a compelling growth runway. But investors should balance the growth story with raw-material supply risks, promoter concentration and related-party transactions. Neha Gupta SEBI Registered Research Analyst For educational purposes only. Not investment advice. Do your own research. #ManoramaIndustries #SpecialtyChemicals #CBE #FoodIngredients #IndianStocks #Investing