Divyadhan Recycling Industries IPO Review

DRIL was formed by executives from textiles industry with experience in Yarn spinning and home textiles. The vision was set up a state of the art manufacturing unit which would adhere to the highest quality parameters which was missing from the Indian recycled market. Since, DRIL has established itself as the premium Indian supplier for Fiber for Fiber-fill and Carpet yarn applications. 

The Company is led by Promoters, Varun Gupta - Managing Director, Pratik Gupta - Wholetime Director and other key managerial person with experience of more than 10 years.

Financially, Revenue in Fiscal 2024, Fiscal 2023 and Fiscal 2022 was ₹5,912.88 Lakhs, ₹5,815.51 Lakhs and ₹5981.52 Lakhs, respectively. The EBITDA for the Fiscals 2024, 2023 and 2022 were ₹570.18 Lakhs, ₹506.67 Lakhs and ₹289.64 Lakhs respectively. The Profit after Tax for the Fiscals 2024, 2023 and 2022 were ₹237.80 Lakhs, ₹216.18 Lakhs and ₹52.91 Lakhs respectively. This indicates steady growth in financial performance.

For the Divyadhan Recycling Industries IPO, the company is issuing shares at a pre-issue EPS of ₹2.41 and a post-issue EPS of ₹1.66. The pre-issue P/E ratio is 26.55x, while the post-issue P/E ratio is 38.50x. The company's ROCE for FY24 is 20.76% and ROE for FY24 is 18.42%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Divyadhan Recycling Industries showing potential gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Divyadhan Recycling Industries 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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