Smart money in India, typically known as HNI, is showing a high interest in the Amir Chand Jagdish Kumar (Exports) IPO, popularly known by its flagship brand “Aeroplane.” Aeroplane Basmati IPO is sized around INR 440 crore (entirely a fresh issue). The issue has now become a focal point for high-net-worth individuals (HNIs) and leading brokerage houses.
By the end of Day 2 (March 25, 2026), the Non-Institutional Investor (HNI) portion has already been oversubscribed 5.24 times, signalling immense confidence from sophisticated investors. Let’s find out why the ‘Smart Money’ bullish on Aeroplane Basmati IPO
1. Explosive Financial Growth
While revenue growth is steady, the real story lies in the company’s ability to convert those sales into massive profits. ACJKEL has demonstrated exceptional efficiency over the last three fiscal years.
| Metric | FY2023 | FY2025 | Growth (CAGR) |
| Revenue from Operations | 1,315.85 | 2,001.65 | ~23% |
| EBITDA (Operating Profit) | 79.69 | 163.65 | ~43% |
| PAT (Net Profit) | 17.50 | 60.82 | ~86.5% |
| EBITDA Margin | 6.06 | 8.18 | Expanding |
For the first half of FY26 (H1FY26), the EBITDA margin has further climbed to 10.36%, showcasing that as the company scales, it is becoming significantly more profitable per kilogram of rice sold.
2. Massive Operating Leverage
A key point highlighted by BP Equities research note on Aeroplane is that the company’s underutilized manufacturing capacity. Currently, Aeroplane Basmati operates at approximately 50% capacity utilization. This means the company can nearly double its production to meet rising global demand without spending heavily on new factories. This “Operating Leverage” allows volume growth to flow directly into the bottom line, potentially leading to even faster profit growth in the coming years.
3. Multi-Bagger Peer Trend
Investors are looking at the Basmati rice sector through a new lens—moving from “commodity” to “branded consumer staples.” The performance of listed peers provides a compelling roadmap:
- LT Foods (Daawat Rice): Historical data shows LT Foods surged from ~INR 96 in March 2023 to over INR 500 by mid-2025, a 5x return in just two years.
- KRBL (India Gate): Despite market volatility, KRBL has shown the ability to recover from lows of INR 250 to highs of INR 470+, proving the sector’s resilience and institutional appetite.
HNIs believe that Aeroplane Basmati, currently ranked 3rd in revenue among peers, is at the cusp of a similar “Value Unlocking” phase.
4. Brand Moat and The GI Advantage
The “Aeroplane” brand has a legacy of over 40 years and maintains a strong market recall with over 40 sub-brands (Ali Baba, World Cup, Jet, etc.).
- Low Ad-Spend, High Loyalty: The company spends only 0.3% to 0.5% of expenses on advertising, yet maintains premium pricing power.
- GI Tag Protection: As noted by Hem Securities, the Geographical Indication (GI) tag for Indian Basmati protects the brand from international counterfeits, ensuring its premium status in the 38+ countries where it exports.
5. Becoming an FMCG Powerhouse
One of the most exciting long-term positives is the company’s diversification into FMCG staples (Atta, Besan, Suji, Maida, etc.).
- The company plans to expand its domestic distributor network from 431 to 700+ by FY28.
- By leveraging its existing “Aeroplane” brand equity to sell daily kitchen essentials, ACJKEL is transitioning into a broader consumer brand, which typically commands much higher market valuations (P/E Rerating).
Aeroplane Basmati IPO Research Notes: Positive Consensus
| Brokerage House | Rating | Key Highlight |
| SBI Securities | Subscribe for Long Term | Exceptional 86.5% PAT CAGR and a strategic pivot to the high-margin domestic market (67% share). |
| Anand Rathi | Subscribe for Long Term | A fully integrated end-to-end business model that ensures cost efficiency and superior quality control. |
| BP Equities | Subscribe | Massive 50% underutilized capacity provides huge operating leverage to double sales without extra Capex. |
| Hem Securities | Subscribe for Long Term | Strong Brand Moat with 100 registered trademarks and GI Tag protection for premium global positioning. |
| Ventura Securities | Subscribe | Scaling benefits reflected in 100% YoY Profit growth (FY25) and a clear roadmap to 700+ distributors. |
| Master Capital | Subscribe | A dominant Top-3 player perfectly positioned to benefit from the shift from unbranded to branded staples. |
Bottomline: With a competitive valuation of ~23x P/E (on an annualised H1FY26 basis) compared to industry leaders, Aeroplane Basmati offers a blend of legacy brand power and high-margin growth. The aggressive HNI subscription (5.24x) is a strong indicator that the “Smart Money” expects this IPO to be a long-term winner in the consumer staples space.
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Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.
