Published: 04th Sep 2024
By: Value Research
The packaging solutions company primarily manufactures flexible intermediate bulk containers (FIBCs) or bulk bags, as they are known. These are used to transport large materials across various industries like chemicals, pharmaceuticals, agriculture etc.
Total IPO size (Rs cr) 170 Offer for sale (Rs cr) 47 Fresh issue (Rs cr) 122 Price band (Rs) 78-83 Subscription dates September 5-9, 2024 Purpose of issue To repay borrowings and fund working capital requirements
677 Net worth (Rs cr) 295 Promoter holding (%) 65.4 Price/earnings ratio (P/E) 23.1 Price/book ratio (P/B) 2.3M-cap (Rs cr)
2Y growth (% pa) FY24 FY23 FY22 Revenue (Rs cr) 10.2 540 475 444 EBIT (Rs cr) 52.2 55 42 24 PAT (Rs cr) 69.4 29 16 10 Net worth (Rs cr) 173 110 92 Total debt (Rs cr) 245 225 241Key financials
EBIT is earnings before tax and interest PAT is profit after tax
Ratios 3Y average (%) FY24 FY23 FY22 ROE (%) 18.2 20.8 18.8 14.8 ROCE (%) 13.2 16.3 13.4 10 EBIT margin (%) 8.1 10.2 8.9 5.3 Debt-to-equity 2 1.4 2 2.6
ROE is return on equity ROCE is return on capital employed
The company’s manufacturing facilities are located near major Indian ports such as Nhava Sheva, Kandla Port, Hazira Port etc., which allows it to efficiently manage its exports business. It derived 49% of revenue from exports in FY24.
The company boasts strong client retention. Its top 10 customers, which accounted for 46 per cent of its FY24 revenue, have been with the company for over 15 years.
The company’s books have some glaring issues, which raise doubts over its inventory management. To read these risks in detail, head to our full story from the link below.