Patel Retail Limited

Patel Retail Limited is primarily engaged as a retail supermarket chain operating in tier-III cities and nearby suburban areas, with focus on 'value retail', offering food, non-food (FMCG), general merchandise and apparel catering to the needs of the entire family. Incorporated in Fiscal 2008, the Company started its first store under the brand 'Patel’s R Mart' at Ambernath, Maharashtra and since, their operations are spread across the suburban area of Thane and Raigad district in Maharashtra. As on May 31, 2025 they operate and manage forty three (43) stores, with a Retail Business Area of approx. 1,78,946 sq.fts. Company launched its private label goods comprising of Pulses ('Patel Fresh') and spices ('Indian Chaska'), which they buy in bulk quantities and package and brand at the processing and packing facility at Ambernath, Maharashtra ('Facility 1'), and mens wear ('Blue Nation'), home improving products ('Patel Essentials'), ready-to-cook / instant mix ('Patel Fresh'), ghee and papad ('Indian Chaska') which they buy from third party vendors under their brands. As on May 31, 2025 they offer around 38 product categories with over 10,000 product SKUs in our stores. As per backward integration strategy and to control the supply chain, company started the production facility at Village Dudhai, Taluka Anjar, District Kutch, Gujarat ('Facility 2'), where they process peanuts and whole spices, such as coriander seed and cumin seeds. Further as a part of the strategy to broaden the product offering across the value chain, they built an agri processing cluster spread over 15.925 Acres of land area at Village Dudhai, Taluka Anjar, District Kutch, Gujarat, comprising of 5 (five) production units collectively ('Facility 3'), 1 (one) fruit pulp processing unit ('F&VUnit'), dry warehouse of 2546.29 sq. mtr. with storage capacity of 3040 MT, cold storage with capacity of 3000 MT and also the in house testing & research laboratory. Company ventured into export of staples, groceries, pulses, spices and pulps under the brand Patel Fresh & Indian Chaska and also that of the brand of the customers from their Manufacturing Facilities. Further more, they also undertake domestic and export trading of assorted / mix container of food and non-food products, such as FMCG goods, household items, kitchen appliances, etc. from reputed third-party brands and also into bulk trading of agri commodities such as, rice, sugar, pulses, edible oil etc. They have exported to over thirty-five (35) countries during the disclosed financial period. As per financial performance, Patel Retail Limited has posted total income / net profits of Rs 825.99 Cr / 25.28 Cr (FY23), Rs 817.71 Cr / Rs 22.53 Cr (FY24) and Rs 1,019.80 Cr / 16.38 Cr (FY25). So as per previous financials data, company has shown decline in sales, but profit increased. Company has an average EPS of Rs 9.35 and average RoNW of 21.53% for last three fiscals. Issue is priced at a P/BV of 4.72 as per NAV of Rs 54.08/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 52.00, 37.80 and 33.69 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Fedex Securities Private Limited is associated with this IPO, and have handled 24 IPOs (Mainboard and SME) in last three fiscal years. ( As on 11.08.25 ) As per financials, Patel Retail Limited has shown declining sales, RoNW is 19.02% and P/E is 52.00, 37.80 and 33.69 respectively as per FY23, FY24 and FY25 earnings. So issue looks fully priced. Company is primarily operating as a retail supermarket chain, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Dhanji Raghavji Patel
• 2 Bechar Raghavji Patel
• 3 Hiren Bechar Patel
• 4 Rahul Dhanji Patel