S H Kelkar and Company Ltd
NSE:SHK
S H Kelkar and Company Ltd
S.H.Kelkar & Co Ltd. is a holding company, which engages in the manufacture and sale of fragrances and flavours. The company is headquartered in Mumbai, Maharashtra and currently employs 1,047 full-time employees. The company went IPO on 2015-11-16. The firm is engaged in the manufacturing, supplying and exporting of fragrances and aroma ingredients, which is made of organic and inorganic chemical compounds. The company operates through two segments: Fragrances and Flavours. The firm offers fragrances in various categories, such as skincare and cosmetics, fabric care, household products, hair care, personal care and fine fragrances. The firm offers flavors in various categories, such as bakery products, beverages, confectionery, dairy products, savory food products and pharmaceuticals. The company also offers a range of services, which include bio technology research service, cosmetic research service, cosmetic testing laboratory and custom synthesis services.
S.H.Kelkar & Co Ltd. is a holding company, which engages in the manufacture and sale of fragrances and flavours. The company is headquartered in Mumbai, Maharashtra and currently employs 1,047 full-time employees. The company went IPO on 2015-11-16. The firm is engaged in the manufacturing, supplying and exporting of fragrances and aroma ingredients, which is made of organic and inorganic chemical compounds. The company operates through two segments: Fragrances and Flavours. The firm offers fragrances in various categories, such as skincare and cosmetics, fabric care, household products, hair care, personal care and fine fragrances. The firm offers flavors in various categories, such as bakery products, beverages, confectionery, dairy products, savory food products and pharmaceuticals. The company also offers a range of services, which include bio technology research service, cosmetic research service, cosmetic testing laboratory and custom synthesis services.
Revenue Growth: SH Kelkar posted consolidated revenue of INR 1,718 crores for the 9 months, up 10% year-on-year, despite challenging conditions in some markets.
Margin Trends: Gross margins remained stable this quarter at around 42.4%, but EBITDA margins were lower due to ongoing investments and higher insurance costs. Adjusted EBITDA margin stood at about 13%.
Investment Phase: The company is in a heavy investment phase, focusing on capacity expansion and new market entry, particularly in the US and Europe, with significant CapEx committed in India and Europe.
Debt & Cash Flow: Debt stands at about INR 800 crores and may rise slightly in the near term due to expansion; a major insurance claim of around INR 100 crores is pending and expected in 6–12 months.
Capacity Expansion: New manufacturing facilities in India and Europe are set to become operational by the next two quarters, addressing past bottlenecks.
Guidance & Outlook: Management reiterates its 12% annual revenue growth target and expects EBITDA margins to improve to 17% over the next two years as investments mature.
Return Ratios: ROCE and ROE are currently in single digits but are expected to move to mid-teens (around 14%) as new initiatives turn profitable.
US Market Entry: The US creative center secured its first customer order; OpEx in the US is $3.5–$4 million annually, with break-even targeted as business ramps up.
