AMBEY LABORATORIES IPO Review

AMBEY LABORATORIES LIMITED are a conglomerate of enterprises, deeply rooted in the Agrochemical sectors. Their operations span across India and abroad with manufacturing facility in Rajasthan, India.

The Company is led by Promoters with significant experience in the Agro Chemical Industry and FMCG who are supported by a strong professional management team named, ARPIT GUPTA, who has experience of almost 15 years in the industry.

Financially, Ambey Laboratories revenue stable from ₹8,241.54 Lakhs in FY21 to ₹8,511.19 Lakhs in FY22 but further increased to ₹10,743.47 Lakhs in FY23 and currently stable at ₹10,043.68 Lakhs in 9MFY24. Similarly, EBITDA is also stable from ₹1,040.60 Lakhs in FY21 to ₹1,085.21 Lakhs in FY22 and further increased to ₹1,102.73 Lakhs in FY23 and currently at ₹1,279.35 Lakhs in 9MFY24. But the PAT decreased from ₹1,033.67 Lakhs in FY21 to ₹357.47 Lakhs in FY22 and further to ₹456.93 Lakhs in FY23 and currently at ₹602.73 Lakhs in 9MFY24. This indicates a steady growth in financial performance.

For the Ambey Laboratories IPO, the company is issuing shares at a pre-issue EPS of ₹2.57 and a post-issue EPS of ₹1.83. The pre-issue P/E ratio is 26.45x, while the post-issue P/E ratio is 37.15x against the medical industry P/E ratio of 50.04x. The company's ROCE for 9MFY24 is 13.14%, and ROE for 9MFY24 is 20.80%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Ambey Laboratories indicates potential listing gains of 35%-40%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the IPO for Listing Gain or Long Term Investment Purposes