Tega Industries IPO: How good is it?

In our story, Tega Industries IPO: Information analysis, we shed light on the key details of the IPO, along with important information about the company. Here we will answer some questions about Tega Industries and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? Yes. In FY21, the company's earnings before tax stood at Rs 181.2 crore. 2) Will the company be able to scale up its business? Yes. Its overall capacity utilisation for FY21 was around 58 per cent, leaving a lot of room for growth. An increase in demand due to declining ore grades, coupled with the company's plan to increase its penetration and market share through its direct sales model and strong research and development capabilities, would help it in the future. 3) Does the company have recognisable brands truly valued by its customers? No. The company is involved in the B2B supply of mill consumables. 4) Does the company have high repeat customer usage? Yes. Its revenue from repeat orders of sales as a percentage of the sales of products and services averaged 76.5 per cent during FY19-21. 5) Does the company have a credible moat? No. While the company operates in a market structure that is dominated by a handful of companies, the company doesn't seem to have a credible moat. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? Yes. The company is sufficiently robust to major regulatory or geopolitical risks. 7) Is the business of the company immune from easy replication by new players? Yes. The industry presents significant entry barriers in the forms of capital intensity, customer validation a