3B Films IPO Review

3B Films is engaged in the manufacturing and supply of CPP & CPE films tailored to meet the diverse needs of the flexible packaging industry and high-end thermoforming applications and thus play a pivotal role in delivering innovative packaging solutions to the clients of a wide array of industries. Their product portfolio includes a wide range of CPP films designed to address the specific needs of various industries, including food and beverage, clothing, flowers and other consumer goods.

The Company is promoted and pioneered by Mr. Ashokbhai Babariya with his brothers, Mr. Mukeshbhai Babariya and Mr. Nitinbhai Babariya and they are associated with the company since its inception. Mr. Ashokbhai Babariya, Promoter and Managing Director of the Company has an engineering background with more than three decades of experience in entrepreneurship and a decade experience in unique and specialty packaging solutions.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 5,718.28 Lakh, ₹ 7,639.79 Lakh, ₹ 7,281.93 Lakh and ₹ 6,807.20 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,234.71 Lakh, ₹ 1,563.90 Lakh, ₹ 1,092.66 Lakh, and ₹ 866.90 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 420.19 Lakh, ₹ 429.17 Lakh, ₹ 91.76 Lakh, and ₹ -34.46 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 2.02 and post-issue EPS of ₹ 1.73 for FY24. The pre-issue P/E ratio is 24.75x, while the post-issue P/E ratio is 28.86x. The company's ROCE for FY24 is 8.64%, ROE for FY24 is 14.91% and RoNW is 13.88%. The Annualised EPS based on the latest financial data is ₹ 2.64 and PE ratio is 18.93x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of 3B Films showing listing gains of 0.00 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the 3B Films Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.