Baba Food Processing is an agro-food manufacturing company. The company manufactures a range of products including Whole Wheat Atta (Wheat Flour), Refined Flour (Maida), Tandoori Atta, and Semolina flour (Sooji).
IPO Review
| Parameters | 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. High debt component. |
| Segment Growth Opportunity | 3 | No moat and highly competitive business. Moderate growth is expected for the sector. |
| Asking Valuation (compared with Peers) | 3 | Asking PE is ~16x, peers in the range of 12-80x. Considering the financials, the asking valuation is high. |
| Lead Manager’s past performance | 1 | Had just one prior listing, which was at a discount of 24%. |
| Consolidated Score | 2.9 |
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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