Avi Ansh Textile IPO Review

Avi Ansh Textile has been operating in the yarn sector since 2005. By 2012, they had established a presence as a manufacturer and exporter of 100% cotton yarn, including combed and carded cotton yarn in various counts. Their production capacity at that time was approximately 4,500MT of cotton yarn per year, with 26,314 spindles.

The Company is led by strong and experienced Promoters, Anil Kumar Jain, Geeta Jain, Avi Jain, A K Jain (HUF), Sanjeev Mittal HUF., Ramesh Mittal HUF., S C Jain (HUF), Akanksha Jain, Ansh Jain.

Financially, revenues from operations for the Fiscals 2024, 2023, 2022 and 2021 were ₹14,214.65 lakhs, ₹12,149.57 lakhs, ₹12,016.76 lakhs and ₹7,264.30 Lakhs respectively. The EBITDA for the Fiscals 2024, 2023, 2022 and 2021 were ₹963.68 lakhs, ₹455.54 lakhs, ₹619.17 lakhs and ₹558.04 Lakhs respectively. The Profit after Tax for the Fiscals 2024, 2023, 2022 and 2021 was ₹331.35 lakhs, ₹28.74 lakhs, ₹155.55 lakhs and ₹68.20 Lakhs respectively. 

For the Avi Ansh Textile IPO, the company is issuing shares at a pre-issue EPS of ₹3.39 and a post-issue EPS of ₹2.37. The pre-issue P/E ratio is 18.28x, while the post-issue P/E ratio is 26.16x against Industry P/E ratio is 28x. The company's ROCE for FY24 is 15.88% and ROE for FY24 is 20.88%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Avi Ansh Textile showing potential listing gains of 15% - 20%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Avi Ansh Textile Limited IPO for Listing gain or long term investment purposes.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

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 during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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