Highlights
| Issue Size – 20,754,716 shares | Issue Open/Close – 24 Mar / 27 Mar, 2026 |
| Price Band (Rs.) 201 – 212 | Issue Size (Rs.) ~ 4,400 mn |
| Face Value (Rs) 10 | Lot Size (shares): 70 |
Amir Chand Jagdish Kumar (Exports) Ltd. (ACJKEL), incorporated in 2003, is engaged in the processing, marketing, and export of rice, primarily basmati rice. The company sells its products in both domestic and international markets through a network of distributors and customers.
Its rice portfolio includes basmati rice and other specialty rice varieties such as brown rice, Kolam rice, Sona Masuri, Idli rice, and Ponni rice, which are marketed under several in-house brands, including the flagship “Aeroplane” brand and other sub-brands.
The company operates 2 manufacturing, processing, and packing facilities located in Amritsar and Safidon and a packaging facility in New Delhi with an installed capacity of 550,800 MT. These facilities are equipped with automated machinery imported from Japan, Germany, and the United States.
Out of the total proceeds of Rs. 4,400 mn from the offer, ~Rs. 4,000 mn would go towards working capital requirements, and ~Rs. 400 mn would go towards general corporate purposes.
Key Highlights
- Indian rice export for CY24 came at around 19.9 mn MT and is expected to grow at 6 pct CAGR to reach 27.9 mn MT by CY30. Basmati rice export is expected to grow at a CAGR of 8 pct, while non-Basmati rice is expected to grow at a CAGR of 5 pct between CY24 and CY30.
- The company has established a strong distribution network with 431 distributors for domestic business and 53 distributors for its export business as of Feb. 28, 2026. The company also reported 325 procurement agents for the same period.
- The company has a paddy storage capacity of 140,000 MT and a rice storage capacity of 130,000 MT at its manufacturing and processing facilities. Its existing manufacturing infrastructure and storage capacities are sufficient to support its planned expansion in the future.
- The company’s key strategies include (i) promotion of its brands’ visibility and marketing initiatives. (ii) Geographical expansion and presence of its products in the Indian market. (iii) Expanding its reach into various FMCG products. (iv) Improving operational efficiency with better utilization of their units.
- Sales of the company have grown by 23.3 pct CAGR over FY23-25, and EBITDA and profit grew by 43.3 pct CAGR and 86.5 pct CAGR over the same period. During FY25 the sales of the company jumped by 29.2 percent YoY to Rs. 20,016 mn. While EBITDA of the company grew by 49.2 pct YoY to Rs. 1,637 mn and EBITDA margin expanded by 110 bps to 8.18 pct YoY in FY25. During FY25, the company reported a profit of Rs. 608 mn, which grew 100 percent YoY.
Key Risk
- Due to the nature of the business, the company is required to maintain a high level of inventory for aging, which typically takes 3 to 24 months. Further, they are also required to complete most of the annual procurement of their primary raw material, paddy crop, during the peak harvesting season of paddy; as a result, their inventory turnover days have been high.
- The company has experienced negative cash flows in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect its ability to operate its business and implement its growth plans, thereby affecting its financial condition.
Financial Performance
| (In Rs. million, unless otherwise stated) | FY23 | FY24 | FY25 | H1FY26 |
| Revenue from Operations | 13158 | 15495 | 2016 | 10212 |
| EBITDA | 797 | 1097 | 1637 | 1058 |
| EBITDA Margin % | 6.1% | 7.1% | 8.2% | 10.4% |
| Profit | 175 | 304 | 608 | 487 |
| Profit Margin % | 1.3% | 2.0% | 3.0% | 4.8% |
| ROE % | 6.4% | 10.3% | 17.6% | 11.9% |
| ROCE % | 7.8% | 10.4% | 14.4% | 9.2% |
Peer Comparison
| Peer Comparison | ACKJEL | LT FOODS | KRBL | CHAMAN LAL SETIA | GRM OVERSEAS |
| Revenue from Operations (Mn) | 20,016 | 86,815 | 55,938 | 14,953 | 13,482 |
| EBITDA (Mn) | 1,637 | 10,069 | 6,744 | 1,411 | 796 |
| EBITDA Margin % | 8.2% | 11.6% | 12.1% | 9.4% | 5.9% |
| Profit (Mn) | 608 | 6,118 | 1,029 | 612 | 269 |
| Profit Margin % | 3.0% | 7.0% | 1.8% | 4.1% | 2.0% |
| ROE % | 17.6% | 16.8% | 9.4% | 14.2% | 16.1% |
| ROCE % | 14.4% | 21.8% | 12.5% | 18.0% | 14.1% |
Valuation
Amir Chand Jagdish Kumar (Exports) Ltd., established in 2003, is one of India’s leading producers and exporters of basmati rice. Operating under the flagship brand Aeroplane Rice, the company also markets a diverse portfolio of rice varieties under other in-house brands. At the upper end of the price of Rs. 212, the issue quotes a PE of 22. 6x on FY26 annualized earnings. The issue looks fully priced.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
