Pajson Agro India IPO Review: A Deep Dive into the Cashew Processor’s Public Offer

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The Indian SME IPO market continues to buzz with activity, and the latest entrant is Pajson Agro India Ltd., a company cementing its position in the agricultural processing sector. With a vertically integrated business model that spans from raw cashew sourcing to the retail shelves under its brand “Royal Mewa,” this IPO is garnering attention for its robust financial growth and strategic expansion plans.

This report provides a granular analysis of the Pajson Agro India IPO, covering its business fundamentals, financial health, valuation, and market positioning to help you make an informed investment decision.

Critical Dates: Pajson Agro India IPO

Event	Date
IPO Open Date	Thursday, December 11, 2025
IPO Close Date	Monday, December 15, 2025
Basis of Allotment	Tuesday, December 16, 2025
Refunds Initiation	Wednesday, December 17, 2025
Credit to Demat	Wednesday, December 17, 2025
Listing Date	Thursday, December 18, 2025

Deep Dive Analysis

1. Business Model: From Shell to Shelf

Pajson Agro India Ltd., incorporated in 2021, has rapidly evolved from a standard commodity processor into a brand-conscious FMCG player. The company operates primarily in the food processing sector, specifically focusing on Cashew Nuts.

• Core Operations: The company processes Raw Cashew Nuts (RCN) into finished cashew kernels. The processing involves shelling, peeling, grading, and packing.
• Sourcing Strategy: To mitigate supply chain risks, Pajson sources raw materials from multiple African nations (Côte d’Ivoire, Ghana, Nigeria, Benin, Togo, Guinea-Bissau) and domestic Indian markets.
• Manufacturing Capability: The company operates a processing facility in Visakhapatnam, Andhra Pradesh, with an installed capacity of 18,000 Metric Tonnes (MT).
• Product Portfolio:
  • Bulk Cashews: Supplied to wholesalers and institutional buyers.
  • B2C Brand: The company has launched its own white-label brand, “Royal Mewa”, selling dry fruits like cashews, almonds, pistachios, and raisins via e-commerce and offline retail.
  • By-Products: Cashew husk and shells are sold for industrial applications, ensuring minimal waste.

2. Financial Performance: A Trajectory of Growth

The financial statements of Pajson Agro India paint a picture of aggressive scaling. The company has shown a massive jump in revenue and profitability in the last fiscal year.

Particulars	FY 2023	FY 2024	FY 2025	H1 FY26 (Sep ’25)
Revenue (₹ Cr)	101.13	96.04	187.28	118.37
PAT (₹ Cr)	0.02	3.35	20.42	14.20
Reserves (₹ Cr)	16.94	20.29	40.71	40.90
Borrowings (₹ Cr)	0.00	14.57	14.57	40.04

Key Financial Takeaways:

• Revenue Surge: Revenue nearly doubled from FY24 to FY25, jumping from ₹96 Cr to ₹187 Cr. The H1 FY26 figure of ₹118 Cr suggests they are on track to surpass ₹230 Cr this year.
• Profit Explosion: The Profit After Tax (PAT) skyrocketed from a mere ₹2 Lakhs in FY23 to over ₹20 Cr in FY25. This indicates improved operational efficiency and better margins.
• Rising Debt: Total borrowings have increased significantly to ₹40 Cr in H1 FY26. Investors should monitor if this debt is being used efficiently for expansion (Capex) or working capital.

3. Valuation and IPO Pricing

• Price Band: ₹112 – ₹118 per share.
• Face Value: ₹10 per share.
• Lot Size: 1,200 Shares (Note: Minimum Retail Application is typically 1 lot, but some sources suggest a higher minimum for this specific issue. Always check your broker’s app for the exact minimum lot quantity).
• P/E Ratio Analysis:
  • EPS (Pre-IPO): ₹11.67
  • P/E Ratio: At the upper price band of ₹118, the P/E is approximately 10.11x.
  • Post-IPO EPS: ~₹11.92 (estimated)
  • Post-IPO P/E: ~9.9x

Valuation Verdict: Compared to industry peers trading at P/Es ranging from 20x to 80x, Pajson Agro’s pricing appears attractive. A P/E of ~10x for a company growing at this pace leaves room for listing gains, provided the market sentiment remains positive.

4. SWOT Analysis

Strengths:

• Strategic Location: The Visakhapatnam facility is near ports, reducing logistics costs for imported raw nuts and exports.
• Vertical Integration: Presence in both bulk processing and higher-margin retail branding (“Royal Mewa”).
• Agile Sourcing: Diversified procurement reduces dependency on a single geography’s harvest season.

Weaknesses:

• Low Barriers to Entry: The cashew processing industry is highly fragmented with many unorganized players.
• Geographic Concentration: Manufacturing is currently concentrated in a single region (Andhra Pradesh), posing operational risks.

Opportunities:

• Expansion: IPO proceeds are dedicated to setting up a second facility in Vizianagaram, which will significantly boost capacity.
• Export Markets: Growing demand for processed cashews in the Middle East and Europe offers a lucrative export avenue.

Threats:

• Raw Material Volatility: Cashew prices are subject to global fluctuations and agro-climatic conditions.
• Regulatory Changes: Import duties on Raw Cashew Nuts (RCN) or export restrictions can impact margins instantly.

5. Peer Comparison

Company	P/E Ratio	EPS (Basic)	RoNW (%)
Pajson Agro India	~10.11x	11.67	46.18%
Krishival Foods	78.00x	6.08	9.56%
Prospect Consumer	17.00x	4.19	8.95%
Aelea Commodities	292.00x	0.57	1.13%

Analysis: Pajson Agro significantly outperforms its listed peers in terms of Return on Net Worth (RoNW) and EPS, yet it is asking for a much lower valuation multiple. This “valuation gap” is a strong indicator of potential value for investors.

6. Grey Market Premium (GMP)

As of early December 2025, the Grey Market Premium (GMP) for Pajson Agro India is currently flat or yet to activate.

• Current GMP: ₹0 (Neutral)
• Expected Trend: Given the strong financials and attractive valuation, market analysts expect the GMP to pick up as the IPO open date approaches. SME IPOs often see sudden GMP spikes once subscription numbers start flowing in.

Disclaimer: GMP is an unofficial market indicator and should not be the sole basis for investment decisions.

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Conclusion: Should You Invest?

The Bull Case:

Pajson Agro India Ltd. checks many boxes for a successful SME IPO: explosive financial growth, a low valuation (P/E ~10x), and a clear roadmap for using IPO funds (Capex). The shift towards the B2C “Royal Mewa” brand could unlock higher margins in the future.

The Bear Case:

The company operates in a commodity-heavy business with thin margins historically (though FY25 showed improvement). High working capital requirements and recent debt increases are factors to watch.

Final Verdict:

For investors with a high-risk appetite typical of the SME segment, Pajson Agro offers a favorable risk-reward ratio due to its attractive pricing relative to peers. However, always allocate only a small portion of your portfolio to SME stocks due to liquidity risks post-listing.

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Frequently Asked Questions (FAQ)

1. What is the lot size for the Pajson Agro India IPO?

The market lot size is 1,200 shares. However, investors should verify the minimum application amount on their trading platform, as some SME IPOs require a minimum investment of approx ₹1.4 Lakhs to ₹2.8 Lakhs depending on the structure.

2. How do I apply for the Pajson Agro India IPO?

You can apply via ASBA through your bank account or using UPI through stockbrokers like Zerodha, Upstox, or Groww.

3. Is Pajson Agro India a good buy for the long term?

The company shows strong growth potential with its new facility and B2C focus. If they sustain their FY25 margins, it could be a strong long-term hold. However, commodity cycles can make earnings volatile.

4. What is the registrar for this IPO?

The registrar for the Pajson Agro India IPO is Bigshare Services Pvt. Ltd. You can check the allotment status on their website.

5. Where will Pajson Agro listed?

The shares will be listed on the BSE SME platform.

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• Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
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