Company Overview

Dhariwalcorp Limited is an India-based company engaged in the business of importing and exporting a comprehensive range of wax and industrial chemicals. The Company processes, purchases, sells, imports, and trades various types of wax, including paraffin wax, micro wax, slack wax, carnauba wax, microcrystalline waxes, semi-refined paraffin wax, yellow beeswax, hydrocarbon wax, Montan wax, polyethylene wax, vegetable wax, residue wax, palm wax, BN micro wax, hydrogenated palm wax, micro slack wax, PE wax, and soya wax. Additionally, it trades in industrial chemicals such as rubber process oil, light liquid paraffin (LLP), citric acid monohydrate, refined glycerin, bitumen, stearic acid, and petroleum jelly, including paraffin petroleum jelly and white petroleum jelly. Its product range encompasses all types of heavy and light chemicals, chemical elements and compounds, petrochemicals, industrial chemicals, mixtures, derivatives, and related articles.

Dhariwal Corp operates in the trading of a diverse range of waxes, industrial chemicals, and petroleum jelly. The company's extensive product portfolio serves sectors such as plywood and board, paper coating, crayon manufacturing, candle production, textiles, and pharmaceuticals, with a pan-India presence.

Financial Performance and Market Position

Dhariwalcorp Limited is classified as a small-cap stock. The company has demonstrated strong revenue growth over recent years, with revenue from operations increasing from ₹158.58 crore in FY22 to ₹193.93 crore in FY23, and further to ₹228.80 crore in FY24. The company reported revenue of ₹231.11 Cr. in the latest fiscal year on an annualized basis.

Profitability metrics show remarkable improvement. The Profit After Tax (PAT) has significantly increased from ₹142.41 lakhs in March 2022 to ₹450.63 lakhs by March 2024. Between FY23 and FY24, Dhariwalcorp Limited's revenue increased by 18.4% and PAT rose by 653.06%.

The company's financial strength is further demonstrated by an annual revenue growth of 18%, a pre-tax margin of 3%, and an exceptional ROE of 51%. It maintains a reasonable debt-to-equity ratio of 26%, indicating a healthy balance sheet. The TTM (Trailing Twelve Months) profit after tax was ₹5 Cr.

Key Financial Metrics

- Market Capitalisation: ₹ 95 Cr (as of 06-May-2025)

- Revenue FY24: ₹ 228.80 Crore

- Profit After Tax (PAT) FY24: ₹ 450.63 Lakhs (₹ 4.51 Crore)

- Revenue Growth (FY23-FY24): 18.4%

- PAT Growth (FY23-FY24): 653.06%

- ROE: 51%

- Debt to Equity Ratio: 26%

- PE Ratio: 23.86

- P/B Ratio: 10.88

- 52-Week High: ₹170

- 52-Week Low: ₹90.50

Business Operations and Production Capacity

Dhariwalcorp Limited operates processing units and warehouses strategically located in Jodhpur, Bhiwandi, Ahmedabad, and Mundra. The company operates across 21 states and 3 Union Territories in India and also exports to Nepal. Domestic sales revenue constituted the majority of its total revenue from operations, accounting for 98.91% in FY24, 98.97% in FY23, and 99.72% in FY22.

Product Portfolio and Market Strategy

The company's product portfolio is diverse, covering various types of waxes (paraffin, micro, slack, carnauba, microcrystalline, hydrocarbon, Montan, polyethylene, etc.), industrial chemicals (rubber process oil, light liquid paraffin, citric acid monohydrate, refined glycerin, bitumen, stearic acid), and petroleum jelly.

Dhariwal Corp serves a wide array of industries including:

- Plywood and Board Manufacturing

- Paper Coating

- Crayon Manufacturing

- Candle Production

- Textiles

- Pharmaceuticals

- Adhesive Manufacturing

Management and Promoter Information

The promoters of Dhariwalcorp Limited are MANISH DHARIWAL and SHAKSHI DHARIWAL, who collectively own 73.67% of the total equity. Manish Dhariwal serves as the Chairman of the company. There is no promoter pledging reported. As of March 31, 2024, the company had 7 employees.

Recent IPO and Listing

Dhariwalcorp Limited was founded in June 2020. The company successfully launched its SME IPO in August 2024, with bidding open from August 1 to August 5, 2024. The IPO allotment was finalized on August 6, 2024, and the shares were listed on the NSE SME on August 8, 2024. The IPO price band was set at ₹106 per share. The stock listed at ₹150, representing a premium of 41.51% over the IPO price.

The Dhariwalcorp IPO was a book-building issue of ₹25.15 crores, consisting entirely of a fresh issue of 23.72 lakh shares. Ahead of the IPO, the company raised ₹6.99 crore from anchor investors on July 31, 2024, by allotting 6.60 lakh shares at ₹106 per share.

Fund Utilization and Strategic Goals

The net proceeds from the IPO are intended to be utilized for meeting working capital requirements, funding capital expenditure for warehouse construction, and for general corporate purposes.

Market Position and Competitive Advantages

Dhariwalcorp Limited has established well-defined client relationships, leading to repeated orders due to consistent product quality and personalized service. The company benefits from a wide and diversified product range that caters to various industrial processing needs. Its operations span across India and extend to exports, demonstrating a strong market reach.

Risk Factors and Challenges

- Dependence on Key Customers: The company relies heavily on major customers without long-term contracts. The loss of these key clients, who contributed approximately 34.81% of revenue in FY24, could significantly impact business and financial performance.

- Fluctuating Raw Material Prices: Changes in the prices of imported raw materials, influenced by exchange rates and geopolitical events, can lead to financial losses and affect profitability.

- Quality Requirements and Product Defects: Non-compliance with quality standards or product defects may result in order cancellations, recalls, and liability claims, adversely affecting the company's business and financial health.

Dhariwalcorp Limited represents a growth-oriented SME company in the industrial chemicals and wax trading sector, characterized by strong recent financial performance and strategic positioning across diverse end-user industries in India.