Dhaval Packaging IPO (30 July - 3 August) Analysis

IPO Analysis | BSE SME | 100% Book Built Issue (Pure Fresh Issue) | Regulation 229(2) and 253(1)

Based on Red Herring Prospectus dated July 23, 2026 | Plastic Packaging (IML Containers and SAW Pipe End Caps) | Ahmedabad, Gujarat

STATUS: LIVE RHP, BIDDING OPENS JULY 30, 2026 AND CLOSES AUGUST 3, 2026

Pure Fresh Issue of up to 37,48,800 Equity Shares | No Offer for Sale | BSE SME Platform

Anchor Bid: July 29, 2026 | Only Listed Peer is Mold-Tek Packaging Limited, roughly 14 times larger by revenue

IMPORTANT DISCLOSURE NOTE:

The Company has pending NCLT (Ahmedabad Bench) proceedings seeking voluntary revision of its Financial Statements and Board's Reports for Fiscal 2021, 2022 and 2023, citing unsigned financials, missing UDIN, incomplete attachments, incorrect paid up capital figures, and related procedural defects across all 3 years. The matter is listed for further hearing on August 20, 2026, which falls after this Offer's bidding period closes on August 3, 2026. The Company states no financial figures are being changed and expects no material adverse outcome, but the outcome remains pending as of this RHP. See Section 6 for full detail.

Dhaval Packaging Limited was incorporated on November 2, 2015 as Dhaval Packaging Private Limited, and converted to a public limited company on October 8, 2025. Its CIN is U22203GJ2015PLC084963 and its registered office and one factory are at Plot No. E 411, GIDC, Sanand, Ahmedabad, Gujarat. The Promoters are Manish Nanalal Dagla, Dhaval Nanalal Dagla, Shah Aalap Dipak, Jigar Harivadan Contractor and Jigar Manubhai Shah.

The Company designs, manufactures and supplies plastic packaging for domestic and international food and FMCG customers, operating in 2 segments. The first and larger segment is In Mould Labelling (IML) containers, food grade, tamper evident containers used for ice cream, butter, curd, yogurt, ready to eat foods, sweets and similar perishables, offered across around 39 SKUs.

The second segment is SAW pipe protection plastic End Caps, including PE plugs and recessed caps used to protect pipe and tube ends during storage and transport for the oil and gas, construction and infrastructure sectors. The Company operates 3 manufacturing units, all located in GIDC Sanand, Ahmedabad, and a separate corporate office in Ahmedabad.

Revenue grew from Rs.4,799.32 Lakhs in Fiscal 2024 to Rs.6,503.18 Lakhs in Fiscal 2026, with PAT growing from Rs.155.11 Lakhs to Rs.803.89 Lakhs over the same period, alongside steady improvement in EBITDA margin (10.39% to 21.41% on the Company's own KPI computation).

The Company is now expanding capacity through a new Proposed Facility at Plot No. E-552 in the Sanand-II Industrial Estate, on land it has already leased on a 99 year basis from GIDC and paid for in full from internal accruals. Notably, this RHP also discloses pending proceedings before the National Company Law Tribunal (NCLT), Ahmedabad Bench, seeking permission to revise Financial Statements and Board's Reports for Fiscal 2021, 2022 and 2023, discussed in detail in Section 6.

Key Basics

Particulars	Details
Document Type	Red Herring Prospectus (RHP) dated July 23, 2026. This is a live offer: Anchor Bid July 29, 2026, Bid or Issue opens July 30, 2026 and closes August 3, 2026, which is imminent relative to the date of this analysis.
Issue Structure	100% Book Built Issue, Pure Fresh Issue of up to 37,48,800 Equity Shares (no Offer for Sale at all), of which 1,88,400 shares are reserved for the Market Maker and 1,20,000 shares are reserved for Eligible Employees. Face value Rs.10 per share.
Face Value	Rs.10 per Equity Share.
Promoters	Manish Nanalal Dagla, Dhaval Nanalal Dagla, Shah Aalap Dipak, Jigar Harivadan Contractor and Jigar Manubhai Shah. No Promoter or Promoter Group member is participating in this Issue, consistent with the pure Fresh Issue structure.
Selling Shareholders	Not applicable. This Issue is entirely a Fresh Issue; there is no Offer for Sale and therefore no WACA disclosure for selling shareholders.
Eligibility Route	Regulation 229(2) and 253(1) of Chapter IX of the SEBI ICDR Regulations, 2018.
Listing Exchange	BSE SME Platform, with in principle approval dated April 23, 2026.
BRLM	Rarever Financial Advisors Private Limited.
Registrar	KFin Technologies Limited.
Bid or Issue Dates	Anchor Investor Bid: July 29, 2026. Opens: July 30, 2026. Closes: August 3, 2026.
Listed Peers, One Line	Only 1 listed peer disclosed, Mold-Tek Packaging Limited, a much larger, more diversified national packaging company (about 14 times Dhaval's revenue).

The most distinctive feature of this offer, beyond its imminent live bidding window, is that it is a pure Fresh Issue with no Offer for Sale whatsoever, meaning no existing shareholder is monetising any holding through this Offer and all Net Proceeds (net of Issue expenses) will flow to the Company. This is also one of the few reports in this series where only a single listed peer is disclosed, and that peer differs meaningfully in scale.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Lakhs)	Substantiation
Part-finance new manufacturing facility at Sanand-II Industrial Estate	2,719.02	Total facility cost Rs.5,021.23 Lakhs (excluding land, already paid in full); 31.38% already deployed and 14.47% to come from internal accruals, with the balance 54.15% from Net Proceeds. Capacity certified by an independent Chartered Engineer. However, orders for the underlying machinery have not yet been placed, and quotations are not binding agreements.
Repayment or prepayment of secured borrowings	375.00	A specific rupee amount stated, though the RHP summary reviewed here does not itemise individual lender-wise facilities the way some other reports in this series have; investors should check the full Objects section for lender-level detail.
General corporate purposes	[TBD]	Capped at 15% of Gross Proceeds or Rs.1,000 Lakhs, whichever is lower. No further breakdown provided, as is standard.

The capital expenditure plan is reasonably well substantiated on cost: the total facility cost is independently certified by a Chartered Engineer, the land underlying it is already fully paid for from internal accruals (so no Net Proceeds go toward land), and the funding mix across already-deployed capital, internal accruals and Net Proceeds is laid out precisely. The key caveat, which the Company's own Risk Factors highlight, is that orders for the machinery and equipment itself have not yet been placed as of this RHP, and the vendor quotations obtained are not binding, so there is genuine execution risk around cost and timing overruns on the equipment side even though the facility and land planning is advanced. As with most RHPs at this size, the general corporate purposes component and the precise means of finance table remain a small subset of the plan and are the least specific line.

Financial Performance

P&L and Key Performance Indicators (Rs. Lakhs unless stated)

Particulars	FY 2026	FY 2025	FY 2024
Revenue from operations	6,503.18	5,226.28	4,799.32
Total income	6,520.23	5,242.88	4,807.89
EBITDA (Company KPI basis)	1,392.55	1,022.20	498.79
EBITDA margin (%)	21.41	19.56	10.39
Profit after tax	803.89	604.22	155.11
PAT margin (%)	12.33	11.52	3.23
Basic EPS (Rs.)	8.08	9.75	2.59
Return on equity / RoNW (%)	31.58	49.80	46.62
Net worth	3,074.77	2,016.48	410.26
NAV per equity share (Rs.), FY26 only	30.78	N/A	N/A

Balance Sheet and Cash Flow Highlights (Rs. Lakhs)

Particulars	FY 2026	FY 2025	FY 2024
Total assets	6,642.35	4,789.29	3,370.44
Total borrowings (long and short term)	2,413.16	1,655.23	1,927.50
Net cash from operating activities	673.92	434.71	65.71
Net cash used in investing activities	(1,405.04)	(1,027.60)	(402.44)
Net cash from financing activities	838.76	587.63	428.59
Net increase / (decrease) in cash and cash equivalents	107.64	(5.26)	91.86

Independent recomputation confirms the Company's revenue grew approximately 8.9% in Fiscal 2025 and a further 24.4% in Fiscal 2026, a more moderate and steadier pace than several other companies in this series, while PAT growth has been sharper (289.5% in FY25 over FY24, and a further 33.1% in FY26), driven substantially by margin expansion as raw material cost as a share of revenue fell from 74.17% in FY24 to 59.29% in FY26.

Net worth roughly doubled in FY25 on the back of an equity capital raise (Rs.1,002.00 Lakhs of proceeds from equity capital and premium that year) before growing more moderately in FY26, and the Debt to Equity ratio has fallen sharply from 4.70 times in FY24 to 0.78 times in FY26 as equity capital was infused and profitability improved.

Cash flow shows a consistent pattern across all 3 years: operating cash flow is positive and growing, investing cash flow is meaningfully negative in all 3 years (reflecting sustained capital expenditure on plant, property and equipment as the Company expands capacity), and financing cash flow is positive, funded by a mix of new borrowings and, in FY25, a fresh equity raise.

Overall net cash increased in 2 of the 3 years and only dipped marginally (Rs.5.26 Lakhs) in FY25, when the bulk of investment activity occurred. This is a capital expenditure heavy, working capital intensive manufacturing business, and readers should view the negative investing cash flow as a function of the deliberate capacity build-out rather than a standalone concern.

How Does It Compare to Peers?

Company	Total Revenue (Rs. Lakhs)	EPS (Rs.)	Share Price / P/E	RoNW (%)	NAV/Share (Rs.)
Dhaval Packaging Limited	6,520.23	8.08	N/A (Price TBD)	31.58	30.78
Mold-Tek Packaging Limited	88,786.29	21.93	688.25 / 31.38	10.98	199.79

This RHP discloses only a single listed peer, Mold-Tek Packaging Limited, and the RHP itself notes that industry high, low and average P/E figures are not meaningfully computable with just one peer in the set. Mold-Tek is roughly 14 times larger than Dhaval Packaging by revenue and operates a broader, more diversified national packaging franchise, so the comparison is directional at best rather than a precise valuation anchor.

On the ratios that are comparable, Dhaval's RoNW of 31.58% is meaningfully higher than Mold-Tek's 10.98%, though this partly reflects Dhaval's smaller equity base following its recent public company conversion and equity infusion, a dynamic that can inflate RoNW for smaller, faster growing companies relative to a larger, more mature peer.

Investors should treat the comparison as an illustrative single data point rather than a robust industry benchmark, given the limited size of the peer set.

Key Risks

l Pending NCLT proceedings: The Company has filed a petition before the NCLT, Ahmedabad Bench, seeking voluntary revision of its Financial Statements and Board's Reports for Fiscal 2021, 2022 and 2023, citing a list of procedural defects across all 3 years including unsigned financial statements, missing UDIN (Unique Document Identification Number), incomplete attachments (Audit Report, CARO, Significant Accounting Policies), missing cash flow statements in 2 of the 3 years, missing director details, and, in Fiscal 2022, an incorrect paid up share capital figure in statutory filings.

The Company states no financial figures are being changed and attributes the issues to inadvertent clerical and typographical errors, and an NCLT interim order (February 12, 2026) has directed submission of revised filings to the Registrar of Companies, Regional Director and Income Tax Department for review. The matter is listed for further hearing on August 20, 2026, which is after this Offer's bidding period closes on August 3, 2026, meaning applicants will be bidding before the proceeding concludes.

l The Company has not yet placed firm orders for the machinery and equipment required for its Proposed Facility, and the vendor quotations obtained are not binding agreements, exposing the largest Object of the Issue (Rs.2,719.02 Lakhs) to potential cost and timing overruns.

l Revenue is concentrated in 2 states, Gujarat and Maharashtra, which together contributed 85.92% of revenue in FY 2026, and all 3 manufacturing units are located solely in Gujarat, so state level disruption risk applies to both the customer base and the entire production footprint simultaneously.

l Raw material cost is a large and variable share of revenue (59.29% in FY 2026, having been as high as 74.17% in FY 2024), and the Company has no long term supply contracts with its raw material suppliers, exposing margins to input cost volatility.

l The Company has a documented history of delayed statutory filings across many years and form types (ADT-1, DIR-12, DPT-3, PAS-3, SH-7, CHG-1, CHG-4, AOC-4, MGT-7, MGT-14, INC-27), with delays in some instances running into thousands of days and associated additional filing fees ranging up to Rs.7,800 per instance, alongside separate delays in payment of certain statutory dues.

l The top 10 customers contributed 51.27% of FY 2026 revenue and there are no long term contracts with any customer, though the RHP notes no single customer exceeded 20% of revenue in any of the last 3 fiscal years.

l The Company depends on a limited number of suppliers for key raw materials without long term contracts, creating exposure to availability and pricing disruptions.

l A portion of revenue depends on regulatory approvals and licenses required to operate manufacturing facilities, any lapse or delay in which could disrupt operations.

l Business operations are dependent on the efficient functioning of manufacturing machinery, and equipment breakdowns could disrupt production schedules.

l The Company has a modest but present export business (around 1.27% of FY 2026 revenue) spanning multiple countries, introducing limited foreign exchange and cross border execution risk.

l As a recently converted public company with concentrated Promoter shareholding, typical SME governance and disclosure risks apply, including limited historical public company reporting experience.

Positives to Note

l Profitability and margins have improved steadily and substantially: PAT grew from Rs.155.11 Lakhs in FY 2024 to Rs.803.89 Lakhs in FY 2026, while raw material cost as a share of revenue fell from 74.17% to 59.29% and EBITDA margin (Company KPI basis) rose from 10.39% to 21.41% over the same period.

l Balance sheet leverage has improved markedly, with the Debt to Equity ratio falling from 4.70 times in FY 2024 to 0.78 times in FY 2026, aided by a fresh equity infusion in FY 2025 and retained profit growth.

l The land for the Company's Proposed Facility (99 year GIDC lease) has already been paid for in full from internal accruals, so no Net Proceeds are required for land, and the facility's total project cost has been independently certified by a Chartered Engineer.

l Customer concentration, while present, is bounded: no single customer exceeded 20% of revenue from operations in any of the last 3 fiscal years, and the Company reports no material instances of customer default or termination over the same period.

l RoNW of 31.58% in FY 2026 compares favourably with the Company's sole listed peer, Mold-Tek Packaging Limited, at 10.98%, though the peer is substantially larger and more diversified.

l The Company operates in 2 distinct product segments (food grade IML containers and industrial SAW pipe End Caps) serving different end markets, which provides some diversification of demand drivers within a single manufacturing footprint.

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