Hexagon Nutrition
IPO Size: Rs. 139 cr, Entirely Offer for Sale (OFS)
- By the promoter, as some family members liquidate their holding (89% to drop to 64%)
Price band: Rs. 42-45 per share
M cap: Rs. 553 cr, implying 25% dilution
IPO Date: Fri 5th Jun to Tue 9th Jun 2026, Listing Fri 12th Jun 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Nutrition Mix Maker
Hexagon Nutrition is a 33 year old Mumbai based manufacturer of nutrition products, operating under three business segments:
- B2B2C (50% of revenue): vitamin and mineral pre-mixes supplied to Indian and multinational FMCG companies
- B2C (30% of revenue): branded wellness nutrition and clinical nutrition products under brands PentaSure, ObesiGo, PediaGold, NutrOne, sold via doctor network and having good and sizeable rating on online e-commerce platforms in India (such as Amazon and Flipkart)
- ESG (20% of revenue): ready to use therapeutic food (RUTF) and micronutrient powders (MNPs) under UN programmes for global food fortification and public health initiatives.
Company has 3 plants in India - Nasik (Maharashtra), Chennai and Thoothukudi (Tamil Nadu) with capacity being only 30% utilized, for all the past 3 years. Export, accounting for nearly half of Rs. 350 cr topline, are to 75 countries. But have been erratic. Denmark, Ethiopia and Uzbekistan accounted for over 10% of revenue in a year, but each of them slipped to 0 (i.e. Nil) subsequently. Such inconsistency leads to lack of comfort on revenue and its predictability.
Financials strengthen before IPO
FY25 revenue stood at Rs. 325 cr, with 45% gross margin and Rs. 40 cr EBITDA before other income, leading to 12% operating margin. For 9MFY26, on Rs. 268 cr topline, gross margin strengthened to 50%, leading Rs. 38 cr operating profit.
PBT stood at Rs. 36 cr, of which, Rs. 8 cr came from other income, such as forex gain, interest income and profit on sale of investment. Thus, 9MFY26 PAT stood at Rs. 27 cr, leading to 10% net margin. Effective net margin excluding other income is about 7-8%. On an equity of Rs. 12.3 cr (face value Re. 1 each), 9MFY26 EPS was at Rs. 2.2, with 13% RoE and 15% RoCE. On net worth of Rs. 221 cr, company has net cash of Rs.16 cr.
Attractively Priced
M cap of Rs. 553 cr leads to a PE multiple of about 15x, based on FY27E EPS of about Rs. 3.1. This is seen attractive for double digit net margin, cash rich balance sheet and growing business. Although small operations and inconsistent exports are concerning, IPO pricing makes up for them.
Given Hexagon’s small topline and only 30% from B2C segment, it is futile to compare it with larger peers Abbott, Zydus or Nestle.
5th Jun 2026 at 06:29 pm