Incorporated in 2004, the company is involved in the business of custom synthesis and manufacturing of specialty chemical intermediates involving complex and differentiated chemistry. The company manufactures Pharma Intermediates, AGRO intermediates, Cosmetics Intermediates, Pigment Intermediates, and Dye Intermediates for a diverse Indian and Global customer base.
IPO Review
| Parameter | Score (0-5) | Comments |
|---|---|---|
| Promotors/Sr. Management & Work Ethics | 4 | Well experienced promotors. No red flags as per the RHP – litigations, open criminal proceedings, tax proceedings, etc. |
| Company Financials | 3 | Inconsistent numbers, Very low PAT. The last FY and 6 months seem to be extraordinary. |
| Segment Growth Opportunity | 3 | No moat and highly competitive business. Moderate growth is expected for the sector. |
| Asking Valuation (compared with Peers) | 4 | Asking PE is ~14x, peers in the range of 25-45x |
| Lead Manager’s past performance | 5 | Avg ~25% listing day gain for last 92 IPOs. Considering only 2022 and 2023 the listing day gain is ~60% for 26 IPOs. |
| Consolidated Score | 3.8 |
Disclaimer – This is not an investment advice. Nobody has paid us anything for writing this review. This analysis is for education purposes only.
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