Dhariwalcorp NSE SME RI review - (Not Rated)

•    The company is engaged in the business of manufacturing, processing supplying and trading in many segments like waxes, industrial chemicals, rubber process oil, logistics, trading in agro products etc.
•    Though it posted growth in its top lines, its bottom line marked inconsistency.
•    It is operating in a highly competitive and fragmented segment.
•    Based on its recent financial data, the issue appears aggressively price, though it is at a lucrative discount of around 94+% based on last traded price.
•    Well-informed investors may park funds for medium term.

ABOUT COMPANY:
Dhariwalcorp Ltd., (DL) is engaged in the business of manufacturing, processing and supplying of comprehensive range of waxes, industrial chemicals, and petroleum jelly, including products such as Paraffin Wax, Rubber Process Oil, and White Petroleum Jelly, with a focus on quality, compliance, and efficient logistics. The Company is also engaged in promoting and developing Multi-Commodity High Value Cluster projects for spices such as Cumin, Fenugreek, Fennel, Castor, and Peanuts by adopting modern technologies, strengthening supply chains, and enhancing value addition and global competitiveness. 

Further, it intends to manufacture, process, trade, import, export, and deal in all kinds of spices, masalas, pickles, chutneys, beverages, and other food products, as well as undertake agriculture and horticulture-related activities and allied businesses in India and abroad. Dhariwalcorp continues to explore new markets, innovate product formulations, and enhance sustainability practices, exemplifying adaptability and excellence in the trading landscape.

Additionally, the Company 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, articles, compounds, by-products, and activities of a similar nature.

The company serves various industries including Plywood and Board, Paper Coating, Crayon Manufacturing, Candle Production, Textiles, Pharmaceuticals, Petroleum Jelly & Cosmetics, Tube & Tire Manufacturing, Match Production, Food Processing, and Adhesive Manufacturing. With its diverse range of products, the company plays a significant role in the supply chain of these sectors, ensuring quality products and timely delivery. The offer document is silent on its employees’ strength data.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 47007000 equity shares of Rs. 2 each at a fixed price of Rs. 2.50 per share to mobilize Rs. 11.75 cr. The RI opens for subscription on March 10, 2026, and will close on March 18, 2026. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of February 27, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on NSE SME Emerge. The company is spending Rs. 0.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 4.55 cr. for land acquisition, Rs. 5.92 cr. for infrastructure development for agro processing cluster, and Rs. 0.78 cr. for general corporate purposes. The market lot for this RI shall be a minimum 3000 shares. 

The RI is solely lead managed by the company itself., and Bigshare Services Pvt. Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 9.40 cr. will stand enhanced to Rs. 18.80 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 23.50 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit, of Rs. 228.80 cr. / Rs. 4.51 cr. (FY24), Rs. 233.51 cr. / Rs. 3.56 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it posted a net profit of Rs. 4.18 cr. on a total income of Rs. 118.66 cr. Its NAV stood at Rs. 4.41 as of September 30, 2025.

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: DHARIWAL (FV Rs. 2).
The scrip last closed on cum-right basis at Rs. 79.45 on February 26, 2026, and opened on an ex-right basis at Rs. 41.80 on February 27, 2026. Since then, it has marked a high/low of Rs. 48.30 / Rs. 41.80. The scrip last closed at Rs. 43.45 as of March 06, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 48.30 / Rs. 9.33. 

The promoters’ holding has been constant at 73.87% as of November 26, 2025, and previous three quarters. The counter is currently well managed and traded much above the RI price. Considering its last traded price, RI is lucratively priced at a discount of around 94+%.