Market Updates:
Today 9th July 2025, Nifty 50 opened at 25,514.60, made its high/low at 25,548.70/ 25,424.35 respectively, and closed with a fall of 46.40 points (0.18%) at 25,476.10. In last five trading session Nifty is up by only 39.50 points which is 0.16% whereas Sensex opened at 83,625.89, made its high/low at 83,781.36/83,382.28 respectively, and closed with a fall of 176.43 (0.21%) at 83,536.08. In last five trading session Sensex is down by 185.36 points which is 0.22%. Both Nifty and Sensex one-year return is 4,27% and 3.96% respectively. But This FMCG company has given more than double return in one-year. Here we will discuss the company name and the key reasons of its robust performance.
Introduction:
The Indian stock market is dominated by giant FMCG players such as Hindustan Unilever, ITC, Britania, Hindustan Foods, Nestle, Bikaji, and VBL etc. But here are discussing a small cap FMCG company which is silently multiplying investors’ money with its robust financial performance just in five years. The company Manorama Industries Ltd is a specialty fats and exotic butter producer.
The company is simply belonging to a common FMCG category but without any public attention and interest it has nearly doubled investors’ money in the past year in the war mongering conditions also.
The Business That Powers the Growth:
Mostly the high rated FMCG companies has deployed themselves in a crowded categories likesoaps, snacks, beverages, chocolates, and cigarettes etc. whereas Manorama Industries has developed a high-margin, niche business in the global value chain.
The company’s exotic specialty fats and butters ingredients are very essential in production of chocolates, cosmetics, and personal care products. The processed fats are not easily replaceable and have special properties such as melting point, aroma retention, or texture. These premium products has made Manorama a defensible position in a high-demand niche.
What does Manorama actually do?
The main business of the company is extraction of butters and oils from rare seeds such as Sal, Kokum, Mango kernel, Mahua (native to India), and Shea nuts (sourced from Africa) and process these. The final ingredients are purely organic and premium and are used in:
- Cocoa Butter Equivalents (CBEs) for international chocolate brands like Ferrero, Mondelez (Cadbury), and Hershey’s
- Cosmetic and personal care formulations for giants like L’Oréal and Unilever
A Global Demand Story
Manorama’s revenue comes from exports which is over 70%. It exports its products countries like Europe, U.S., and Japan. The exports protect the company from domestic demand fluctuations and maintain strong forex-linked pricing power.
Since the products of Manorama are premium, so company placed them in a higher margin.
Financial Growth
When FMCG giants like Britania, HUL like companies are struggling for two-digit growth and showing flat volumes or margin pressures, at that time this company has delivered consistent, high-quality earnings growth, quietly compounding investor wealth.
Growth in FY25
In FY25: Revenue surged by 69%, in FY24 it was ₹457 crore to ₹771crore in FY25 it is ₹771 crore.
Hence, Net profit jumped a surprisingly 179%, growing from ₹40 crore to ₹112 crore.
Only Q4 FY25 has profit growth 238% year-on-year.
This kind of growth is rare in the FMCG space, especially in such a niche segment.
EBITDA margin in Q4 FY25 expanded to around 27%, a year before it was 16%.
Return on equity (RoE) is approximately 28%, which is indicating a strong capital efficiency.
Share Price Performance: Silent Multibagger
Manorama Industries has quietly rewarded to it investors.
- The stock has delivered a return of over 127% in the past year with a stock split of ratio1:5.
- The stock has closed today at price 1492.50, which is near its 52-week high is ₹1,515.
- The market cap of the company is ₹8,867 crore.
- Both FIIs and DIIs are increasing their stakes slowly in this company.