Arunaya Organics IPO Review

Arunaya Organics engaged in trading and manufacturing activities of different types of dyes and its intermediaries. They supply a comprehensive range of products, including reactive, acid, direct, basic, and solvent dyes, as well as dye intermediates. Their products are available in multiple forms, such as standardized spray-dried and tray-dried powders, granules, crude, reverse osmosis-treated products and salt free. Additionally, they provide specialty performance chemicals tailored for the paper industry and textile dyeing.

The company is led by the Individual promoter Vinod Agrawal, who is first generation entrepreneur. He has a significant experience in the field of dyes industry. They are also supported by an experienced and dedicated team of Key Management Personnel who have significant experience in all aspects of the business operations and who have helped grow the operations.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 5,820.52 Lakh, ₹ 6,279.45 Lakh, ₹ 7,636.96 Lakh and ₹ 6,225.66 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 712.44 Lakh, ₹ 751.91 Lakh, ₹ 400.73 Lakh, and ₹ 297.66 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 359.78 Lakh, ₹ 405.68 Lakh, ₹ 173.44 Lakh, and ₹ 133.02 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 3.95 and post-issue EPS of ₹ 2.31 for FY24. The pre-issue P/E ratio is 14.68x, while the post-issue P/E ratio is 25.07x against the Industry P/E ratio is 77x. The company's ROCE for FY24 is 36.27%, ROE for FY24 is 44.15% and RoNW is 55.71%. The Annualised EPS based on the latest financial data is ₹ 4.12 and PE ratio is 14.07x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Arunaya Organics showing listing gains of 0 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Arunaya Organics 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.