Aelea Commodities IPO Review

Aelea Commodities Limited (Erstwhile Known As Aelea Commodities Pvt. Ltd.), is engaged in Business of Agro Commodities viz. processing of Raw Cashew Nuts and Trading of Sugar, Rice, Wheat Flour, Pulses, Beans, Vegetables Etc.

The Company is led by professional promoters named, Hozefa S Jawadwala, Satyanarayan Patro, Ashok Patel, Firoz Gulamhusein Hathiyari, Rashida Hozefa Jawadwala, Sonali Malla, Sumita A Patel, and Farida Firoz Hathiyari, and they have significant in-depth knowledge of the commodity trading and has been instrumental in the consistent growth of the Company’s performance. They all have over 10 years of experience in the agri industry.

Financially, Aelea Commodities revenue increased from ₹10,550.85 Lakhs in FY22 to ₹11,014.44 Lakhs in FY23 and currently increased to ₹14,450.77 Lakhs in FY24. But, EBITDA decreased from ₹856.02 Lakhs in FY22 to ₹520.66 Lakhs in FY23 but currently increased to ₹1,846.49 Lakhs in FY24. Similarly the PAT also decreased from ₹1,063.11 Lakhs in FY22 to ₹191.23 Lakhs in FY23 but currently increased to ₹1,222.32 Lakhs in FY24. This indicates a steady growth in financial performance.

For the Aelea Commodities IPO, the company is issuing shares at a pre-issue EPS of ₹8.15 and a post-issue EPS of ₹6.00. The pre-issue P/E ratio is 11.65x, while the post-issue P/E ratio is 15.83x against the industry P/E ratio of 40x. The company's ROCE for FY24 is 31.94%, and ROE for FY24 is 30.75%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Aelea Commodities indicates potential listing gains of 20%-30%. Given the company's financial performance and the valuation of the IPO, we recommend only Risk taking Investors to apply for Listing Gain or Long Term Investment purposes.