Emerald Tyre Manufacturers IPO Review

Emerald Resilient Tyres, established in 2002, has come to be recognized as one of the emerging global manufacturers in the industrial tyres segment, and has built an impeccable reputation as a reliable supplier and solution provider. A wide range of products to suit every need, time-tested product acceptance, long-standing presence in the market, ever expanding global footprint and a customer-centric approach – all these have made Emerald a preferred destination for Total Industrial Tyre-Wheel Solutions.

Company was promoted and pioneered by Mr. Chandhrasekharan Venkatachalam Thirupathi. The Promoter has a rich engineering background with more than two decades experience in Manufacturing and operation of tyres. 

The consolidated revenues from operations for period ended July 31, 2024 and Fiscals ended 2024, 2023 and 2022 were ₹6,492.75 Lakhs, ₹17,196.84 Lakhs, ₹16,798.10 Lakhs and ₹13,469.67 Lakhs respectively. The consolidated EBITDA period ended July 31, 2024 and Fiscals ended 2024, 2023 and 2022 were ₹1,081.42 Lakhs, ₹3,055.27 Lakhs, ₹2,507.33 Lakhs, and ₹1,671.38 Lakhs, respectively. The consolidated profit after tax for period ended July 31, 2024 and Fiscals ended 2024, 2023 and 2022 were ₹413.64 Lakhs, ₹1214.32 Lakhs, ₹892.85 Lakhs, and ₹484.62 Lakhs respectively.

For the Emerald Tyre Manufacturers IPO, the company is issuing shares at a pre-issue EPS of ₹8.64 and a post-issue EPS of ₹6.23. The pre-issue P/E ratio is 11.00x, while the post-issue P/E ratio is 15.24x. The company's ROCE for FY24 is 17.62% and RoE for FY24 is 19.18%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Emerald Tyre Manufacturers showing potential listing gains of 83.76%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Emerald Tyre Manufacturers 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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