SH Kelkar
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
S H Kelkar's management has articulated a clear growth strategy focused on expanding its fragrance and flavors business, supported by a robust global market projected to grow at a 5.2% CAGR. The commissioning of new facilities and investments in Creative Development Centres are expected to enhance operational capabilities and drive innovation, positioning the company favorably against competitors. Vista's financial outlook reflects stable revenue growth and margins, underpinned by these strategic initiatives and a favorable macro environment in India. However, rising raw material costs and geopolitical uncertainties present challenges that could pressure margins. Over the next 12-24 months, key opportunities include market share gains from smaller competitors and expansion into high-growth markets, while watchpoints include the need for continuous innovation and effective cost management to navigate the dynamic operating landscape
Why We Like This Stock
- Strategic investments in new facilities and Creative Development Centres are expected to drive innovation and operational excellence
- The global fragrance and flavors market is projected to expand significantly, providing a favorable backdrop for revenue growth
- Management's focus on cost optimization and strategic pricing will help mitigate margin pressures from rising raw material costs
Things To Watch Out For
- Intensifying competition and the need for continuous innovation could challenge market positioning
- Geopolitical uncertainties and inflationary pressures on raw materials may adversely affect profit margins
- Higher inventory levels due to supply uncertainties could impact cash conversion and operational efficiency
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,841 | 2,123 | 2,368 | 2,558 | 2,781 |
| Profit Before Tax (Cr.) | 184 | 156 | 76 | 63 | 73 |
| PBT Margin | 10.0% | 7.3% | 321.3% | 2.5% | 2.6% |
| Net Profit (Cr.) | 118 | 84 | 43 | 47 | 55 |
| Earnings Per Share | 8.5 | 6.1 | 3.1 | 3.4 | 4.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Kotak Securities | ▲ Buy | 270 | 19-May-2026 |
Company Overview
Show Company Profile
S H Kelkar and Company Limited, together with its subsidiaries, manufactures and supplies fragrances, flavors, and aroma ingredients in India. Its fragrances are used in personal care, fabric care, skin care, hair care, fine fragrances, and home care products, as well as flavors are used in baked, dairy, beverages, savoury, and pharmaceutical products. The company is also involved in microbiology, biotechnology, cosmetic, custom synthesis, and cosmetic biotechnology research services. S H Kelkar and Company Limited markets its products under the SHK, Cobra, CFF, and Keva brand names to national and multi-national FMCG companies, blenders of fragrances and flavors, and its producers. The company exports its products. S H Kelkar and Company Limited was founded in 1922 and is based in Mumbai, India.