Riddhi Display Equipments IPO

The company claims to be committed to delivering high-quality products to its customers. By continuously improving production processes, it has developed products that meet specific customer requirements. The company states that consistent product quality allows it to offer competitive pricing, supported by effective cost optimisation strategies.

The company claims to offer tailor-made products based on customer specifications and maintains a strong after-sales service. In addition to providing standardised products that meet industry standards, the company states that it customises solutions according to client requirements, focusing on both quality and meeting customer needs.

The company’s manufacturing facility is located in Gondal, Gujarat. The company states that this facility is equipped with the necessary infrastructure to produce high-quality products efficiently and cost-effectively. Production operations are managed by a skilled and qualified technical team with the expertise required to maintain product standards.

The company claims to offer a wide range of products that serve multiple industries, including dairy, ice cream, food processing, pharmaceuticals, hospitals, hospitality, and retail, among others. The company further states that this diversified product portfolio allows it to cater to varied industry requirements.

The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 17.53 crore in FY23 to Rs 18.86 crore in FY24 and Rs 25.03 crore in FY25. PAT increased from Rs 0.21 crore in FY23 to Rs 2.02 crore in FY24 and Rs 4.14 crore in FY25.

The company’s top 5 customers accounted for Rs 6.76 crore (60.23 percent) of the company’s total revenue for the period ended July 31, 2025; Rs 10.41 crore (41.57 percent) in FY25; Rs 7.40 crore (39.24 percent) in FY24; and Rs 5.17 crore (29.48 percent) in FY23. The top customer, alone, accounted for Rs 2.81 crore (20.89 percent) of the company’s total revenue for the period ended July 31, 2025; Rs 3.57 crore (12.04 percent) in FY25; Rs 3.04 crore (16.14 percent) in FY24; and Rs 1.93 crore (11.01 percent) in FY23. The company does not have any long-term agreements with them, and a loss of any of these clients could adversely affect its operations and finances.

The company’s top 5 suppliers accounted for Rs 3.03 crore (40.71 percent) of the company’s total purchases for the period ended July 31, 2025; Rs 6.46 crore (34.39 percent) in FY25; Rs 4.15 crore (29.92 percent) in FY24; and Rs 4.27 crore (27.36 percent) in FY23. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business.

The company derives a significant portion of its revenue from Gujarat. The state accounted for Rs 4.52 crore (40.24 percent) of the company’s total revenue for the period ended July 31, 2025; Rs 9.46 crore (37.79 percent) in FY25; Rs 6.69 crore (35.46 percent) in FY24; and Rs 7.72 crore (44.06 percent) in FY23. Furthermore, the company’s sole manufacturing facility is located in Gujarat. Any adverse political, social, or economic developments in the region could hurt the company’s operations and financial condition.

The company reported negative cash flows from operating activities amounting to Rs 1.04 crore in FY25 and Rs 0.27 crore in FY24. This was primarily due to payments made to creditors under revised purchasing policies and increased procurement of raw materials to support projected sales. It also recorded negative cash flows from investing activities amounting to Rs 0.46 crore for the period ended July 31, 2025, Rs 1.14 crore in FY25, Rs 0.11 crore in FY24, and Rs 0.17 crore in FY23. This was mainly due to asset acquisitions, which resulted in higher cash outflows. Furthermore, negative cash flows from financing activities amounted to Rs 2.15 crore for the period ended July 31, 2025, and Rs 0.87 crore in FY23, driven by interest payments and repayment of long-term borrowings. Continued outflows could result in liquidity challenges for the company in the future.

The company operates under multiple safety, health, environmental, labour, and workplace laws and regulations. Any failure to comply with these laws could adversely affect its operations and financial condition.

Most raw materials for manufacturing are sourced from suppliers in Gujarat. Gujarat accounted for Rs 7.34 (98.68 percent) crore of total raw material costs for the period ended July 31, 2025, while Rs 0.10 crore (1.32 percent) came from Maharashtra. Any economic downturns or regulatory changes in this region could affect the suppliers’ ability to provide materials consistently, potentially increasing costs and affecting production.

The company reported trade receivables of Rs 12.03 crore as of July 31, 2025, up from Rs 10.32 crore in FY25. If these receivables are not collected on time or at all, it could hurt the company’s business and finances.

The company, its subsidiary, directors, promoters, key managerial personnel, senior management, and group companies are involved in certain legal proceedings. Any adverse judgment in any of these cases could be detrimental to the company’s business prospects.

As of July 31, 2025, the company reported total indebtedness of Rs 7.93 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.