Citichem India IPO Review

Citichem India Limited is a trading company that specialises in the procurement and supply of organic and inorganic chemicals, bulk drugs, and food chemicals, primarily serving the pharmaceutical industry. The company also provides food preventives and chemicals under its own brand name. Citichem's products cater to various industries including aluminium, steel, textiles, paper, dairy, paints, dyes & intermediates, soap making, pharma, food, and adhesives.

The Company is promoted and managed under the leadership of Mr. Arif Esmail Merchant (Promoter & Managing Director)  has experience of more than 30 Years in sourcing and supply of organic, inorganic and speciality chemicals.

The Revenues from operations for the period ended on June 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 149.07 Lakhs, ₹ 1,960.58 Lakhs, ₹ 2,094.07 Lakhs and ₹ 8,528.00 Lakhs respectively. The EBITDA for the period ended on June 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 28.39 Lakhs, ₹ 179.29 Lakhs, ₹ 58.40 Lakhs, and ₹ 44.71 Lakhs, respectively. The Profit after Tax for the period ended on June 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 19.95 Lakhs, ₹ 111.83 Lakhs, ₹ 36.26 Lakhs, and ₹ 23.94 Lakhs respectively. This indicates steady growth in financial performance.
 
The Company Key Performance Indicates the pre-issue EPS of ₹ 2.24 and post-issue EPS of ₹1.64 for FY24. The pre-issue P/E ratio is 31.25, while the post-issue P/E ratio is 42.56x against the Industry P/E ratio is 60x. The company's ROCE for FY24 is 21.47%, ROE for FY24 is 15.42% and RoNW 15.42%. The Annualised EPS based on the latest financial data is ₹1.6 and PE ratio is 43.75x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Citichem India showing potential listing gains of 28.57 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Citichem India 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.
You can connect with the Author on Telegram, YouTube and Website.