Waya initiates coverage on Manorama Industries Ltd. with a BUY recommendation. Waya expects an upside of 50% in 1 year and sets a target price of ₹1,550.

Manorama Industries is a global supplier of specialty fats and butters used in chocolates, biscuits, bakery, cosmetics and personal care products. The company sources natural seeds like sal, mango, shea, kokum and mowrah from India and Africa, and converts them into high-value ingredients for leading global brands.

Manorama has strong financials with sales growing by 33% in the last 5 years and profits went up almost 3 times in FY25. We project its sales to grow 3x in next 2-3 years with 25% operating margin. Waya believes Manorama is a great company, well-placed for long-term growth driven by rising demand for specialty fats, new global customers and entry into higher-margin products.