Excellent Wires and Packaging IPO Review

EXCELLENT WIRES & PACKAGING LTD. is a distinguished manufacturer renowned for its extensive range of high-quality wire products and packaging solutions. Their product portfolio includes an array of wires, such as Mild Steel Wires (including Annealed, H.B., and H.H.B. variants), Spring Steel Wires, Galvanized Wires (GI Wires), Round Stitching Wires, Spiral Binding Wires, Stainless Steel Wire, Brass Wires, Copper Wires, and Wire Ropes crafted from premium-grade high carbon or stainless steel wire, optionally coated with PVC for enhanced durability and versatility across multiple applications.

Financially, Excellent Wires and Packaging revenue increased from ₹728.85 Lakhs in FY22 to ₹1,448.46 Lakhs in FY23 and currently at ₹1,540.82 Lakhs in FY24. Similarly, EBITDA increased from ₹16.52 Lakhs in FY22 to ₹41.82 Lakhs in FY23 and currently at ₹146.14 Lakhs in FY24. The PAT also increased from ₹4.73 Lakhs in FY22 to ₹10.43 Lakhs in FY23 and currently at ₹82.98 Lakhs in FY24. This indicates a steady financial performance.

For the Excellent Wires and Packaging IPO, the company is issuing shares at a pre-issue EPS of ₹3.32 and a post-issue EPS of ₹1.85. The pre-issue P/E ratio is 27.10x, while the post-issue P/E ratio is 48.64x against Industry P/E ratio is 54.65x. The company's ROE for FY24 is 20.90%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Excellent Wires and Packaging showing potential listing gains of 5% - 10%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Excellent Wires and Packaging Limited IPO for Listing gain or long term investment purposes.