DURLAX TOP SURFACE IPO Review

DURLAX TOP SURFACE LIMITED has been involved in Solid Surface Business for more than 10 Years with its two Established Popular Brands LUXOR (ACRYLIC UV SOLID SURFACE) & ASPIRON (MODIFIED SOLID SURFACE) with Excellent Satisfaction Rating with our end customer & Channel Partners.

Durlax company is back by their strong promoters named, Shravan Suthar and Lalit Suthar, who have combined industry experience of around 20 years and possess business intellect in the marketing and distribution circles of the solid surfaces industry as they are in this business since many years.

Financially, Durlax Surface revenue increased from ₹4,735.82 Lakhs in FY22 to ₹6,673.83 Lakhs in FY23 and currently landing at ₹9,076.42 Lakhs in FY24. Similarly, EBITDA rose from ₹669.89 Lakhs in FY22 to ₹792.05 Lakhs in FY23 and then currently at ₹1,111.04 Lakhs for FY24. PAT surged from ₹48.42 Lakhs in FY22 to ₹209.44 Lakhs in FY23 and currently landing at ₹505.07 Lakhs in FY24. This indicates steady growth in financial performance. 

For the Durlax Surface IPO, the company is issuing shares at a pre-issue EPS of ₹4.06 and a post-issue EPS of ₹3.03. The pre-issue P/E ratio is 16.74x, while the post-issue P/E ratio is 22.44x against the plastic industry P/E ratio of 32x. The company's ROCE for FY24 is 11.54%, and ROE for FY24 is 26.20%. These metrics suggest that the IPO is priced at par.

The Grey Market Premium (GMP) indicates potential listing gains of 20%-25%. Given the company's steady financial performance and the valuation of the IPO, we recommend Investors to apply in the IPO for listing gains and long term Investment purposes.