Classic Electrodes (India) IPO Review

Classic Electrodes (India) is engaged in the business of manufacturing welding electrodes and providing engineering solutions to customers both in domestic and international market. The Company has been in existence for (27) twenty-seven years now and provides a wide range of product offerings including General Purpose Electrodes, Low Alloy Electrodes, Low Hydrogen Electrodes, Stainless Steel Electrodes, Hard Facing Electrodes, Cast Iron Electrodes, Non-Ferrous Electrodes, Low Heat Input Electrodes, Cutting and Gauging Electrodes, Mig Wires etc.

The company is led by promoters, HANUMAN PRASAD AGARWAL, who has over 26 years of experience, SUSHIL KUMAR AGARWAL has over 26 years of experience and is a key asset to the organization, NITESH AGARWAL has more than 6 years of experience and he overseas operations of the Kolkata factory, concurrently managing marketing initiatives, SUNIL KUMAR MITTAL has over 26 years of professional experience, AYUSH AGARWAL has more than 5 years of experience and he looks after operations of Haryana Factory and NARESH KUMAR AGARWAL.

The Revenues from operations for the period ended on Feb 28, 2025 and Fiscals ended on Mar 31, 2024, 2023 and 2022 were ₹ 18,789.56 Lakh,₹ 19,440.73 Lakh, ₹ 15,112.69 Lakh and ₹ 13,436.80 Lakh. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 1,962.81 Lakh, ₹ 2,321.76 Lakh, ₹ 872.73 Lakh and ₹ 633.49 Lakh. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 957.31 Lakh, ₹ 1,229.79 Lakh, ₹ 208.48 Lakh and ₹ 149.31 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 7.92 and post-issue EPS of ₹ 5.81 for FY24. The pre-issue P/E ratio is 10.98x, while the post-issue P/E ratio is 14.97x against the Industry P/E ratio is 35x. The company's ROCE for FY24 is 25.78%, ROE for FY24 is 44.11% and RoNW is 36.14%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Classic Electrodes (India) showing listing gains of 20.68 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Classic Electrodes (India) 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.