Barflex Polyfilms IPO Review

Barflex Polyfilms is engaged in manufacturing of COEX films, laminates and labels. They manufacture flexible packaging material suitable for packaging products in FMCG industry, processed foods, adhesive, engineering, pharmaceutical industry, cosmetics, construction industry and others. At present, they manufacture 3-layer poly films, 5-layer poly films, laminates, vacuum pouches, 5-layer bulk liners and PVC shrink labels. 

The Company has a track record of 19 years in the flexible packaging industry. Their Promoter Mr. Jaiwant Bery has over 37 years of experience in this industry. The Promoter is responsible for the entire business operations of the Company along with an experienced team of executives/personnel who assist them.

The Revenues from operations for the period ended on Nov 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 7,802.09 Lakh, ₹ 11,612.11 Lakh, ₹ 11,040.76 Lakh and ₹ 9,410.27 Lakh respectively. The EBITDA for the period ended on Nov 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,939.29 Lakh, ₹ 2,382.00 Lakh, ₹ 1,330.45 Lakh, and ₹ 1,061.16 Lakh, respectively. The Profit after Tax for the period ended on Nov 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,349.28 Lakh, ₹ 1,623.55 Lakh, ₹ 1,013.07 Lakh, and ₹ 794.09 Lakh respectively. This indicate a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 7.15 and post-issue EPS of ₹ 6.56 for FY24. The pre-issue P/E ratio is 8.39x, while the post-issue P/E ratio is 9.15x against the Industry P/E ratio is 28x. The company's ROCE for FY24 is 27.21%, ROE for FY24 is 25.44% and RoNW 25.44%. The Annualised EPS based on the latest financial data is ₹ 8.91 and PE ratio is 6.73x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Barflex Polyfilms showing potential listing gains of 20.00%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Barflex Polyfilms Limited IPO for Listing gain.

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.