Swasthik Plascon is a company that specializes in the production of PET bottles and PET preforms. They manufacture PET bottles for various applications such as pharmaceuticals, liquor, FMCG packaging, household, dishwashing liquids, repellent dispensers, etc. They also produce PET preforms for soft drink bottles, packaged drinking water bottles, and juice bottles.
IPO Review
| Parameters | Score (0-5) | Comments |
|---|---|---|
| Promotors/Sr. Management & Work Ethics | 2 | Well experienced promotors. No red flags as per the RHP – open criminal proceedings, etc. except a few open tax proceedings. |
| Company Financials | 2 | Inconsistent numbers, Very low PAT. High debt component. The exponential increase in the bottom line is not comforting. |
| Segment Growth Opportunity | 3 | No moat and highly competitive business, so doesn’t enjoy high margin. Moderate growth is expected for the sector. |
| Asking Valuation (compared with Peers) | 3 | Asking PE is ~17x, peers in the range of 15-25x. Considering the financials, the asking valuation seems to be on the higher side. |
| Lead Manager’s past performance | 4 | Avg 36% listing day gain for past 28 IPOs. |
| Consolidated Score | 2.8 |
Disclaimer – This is not an investment advice. Nobody has paid us to write this review. This analysis is for education purposes only.
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