Synopsis:
Leo Dryfruits & Spices Trading Ltd announced that it has secured a significant supply order worth an estimated Rs. 25-30 crore over one year from Kendriya Police Kalyan Bhandar (KPKB), under the Ministry of Home Affairs, The order covers spices, dry fruits, ghee, and namkeen. The stock touched its day’s high with a 2.16% gain from the previous close.

A penny FMCG stock saw investor interest on Tuesday after disclosing a major government-linked supply order spanning whole spices, blended spices, dry fruits, ghee, and namkeen, valued at an estimated Rs. 25–30 crore based on projected purchase orders during the term.

Leo Dryfruits & Spices Trading Ltd, with a market capitalisation of Rs. 135.08 crore, opened at Rs. 75.60 against the previous close of Rs. 74. The stock hit an intraday high of Rs. 75.60, marking a 2.16% rise from the previous close.

What’s the News?

The company has secured a significant one-year supply contract with Kendriya Police Kalyan Bhandar (KPKB), which operates under the Ministry of Home Affairs, Government of India. The products include whole spices, blended spices, dry fruits, ghee, and namkeen, to be supplied via its sole selling agent, M/s J Ketankumar Co.

The estimated value of the order is Rs. 25-30 crore, based on expected purchase orders during the agreement period. However, the execution will be handled by the promoter group entity, M/s J Ketankumar Co., the proprietorship concern of Ketan Sobhagchand Shah, Whole Time Director & CFO of the Company. This entity will act as the exclusive sole agent for KPKB-related procurement, marketing, sales, and order fulfillment across India on behalf of the company.

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Financial Snapshot

For the year ended March 2025, the company posted revenue of Rs. 87.31 crore and a net profit of Rs. 8.16 crore, with an operating profit margin of 16.97%. Compounded profit growth over three years stood at an impressive 367%.

Key ratios include ROCE at 22.4%, ROE at 16.7%, and ROA at 9.61%. The stock’s P/E ratio of 16.6 is lower than the industry P/E of 20.6, suggesting that the stock is undervalued compared to its peers. Borrowings stood at Rs. 21.14 crore, reserves at Rs. 45.78 crore, fixed assets at Rs. 4.10 crore, and total assets at Rs. 117.42 crore, resulting in a healthy debt-to-equity ratio of 0.33.

About the Company

Leo Dryfruits & Spices Trading Ltd is engaged in manufacturing, processing, trading, and marketing a wide range of spices, dry fruits, and grocery products under the brand name VANDU, and frozen/semi-fried products under the brand FRYD. Its portfolio spans whole and blended spices, plain, roasted, and flavoured dry fruits, ghee, seasonings, and snack products in multiple packaging sizes.

Written – Manan Gangwar

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