Dhariwal Corp IPO Review

Dhariwal Corp Limited is one of the leading Importers and Exporters of a comprehensive range of Wax and Industrial Chemicals. Besides, they are also engaged as Manufacturer and Supplier of Candles.

The Company is promoted by Mr. Manish Dhariwal and Ms. Shakshi Dhariwal, possessing around more than fifteen and ten years of experience, respectively, in the Waxes and Industrial Chemicals Industry respectively.

Financially, Dhariwal Corp revenue increased from ₹15,920.11 Lakhs in FY22 to ₹19,519.43 Lakhs in FY23 and currently jumped to ₹23,111.35 Lakhs in FY24. But, EBITDA decreased from ₹237.88 Lakhs in FY22 to ₹158.16 Lakhs in FY23 and currently increased at ₹668.73 Lakhs in FY24. The PAT also decreased from ₹142.41 Lakhs in FY22 to ₹25.55 Lakhs in FY23 and currently increased at ₹450.63 Lakhs in FY24. This indicates a steady financial performance.

For the Dhariwal Corp IPO, the company is issuing shares at a pre-issue EPS of ₹6.87 and a post-issue EPS of ₹5.03. The pre-issue P/E ratio is 15.43x, while the post-issue P/E ratio is 21.07x against the Petrochemical Industry P/E ratio of 20x and Chemical industry P/E ratio of 40x. The company's ROCE for FY24 is 59.80% and ROE for FY24 is 51.50%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Dhariwal Corp indicates potential listing gains of 30% to 35%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply Dhariwal Corp IPO for Listing gain purposes.