Freshara Agro Exports IPO Review

Freshara Agro Exports engaged in the procurement, processing and exporting of preserved Gherkins and other pickled commodities from India to different countries of the world. The procurement process involves direct sourcing from accredited farms and farmers dedicated to sustainable agricultural methodologies. The Company concludes buy-back agreements with the farmers and in turn supplies the farmers the necessary sowing material such as seeds to the identified small and marginal farmers.

The Company is led by the Promoters and Directors, Mr. Junaid Ahmed and Mr. Iqbalahmed Khudrathullah Mohammed who have collective experience of more than 9 years in the gherkins and pickled vegetables export business. 

For the Financial Years 2021-22, 2022-23, for the period ended January 23, 2024 and for the period from January 24, 2024 to March 31, 2024 the revenue from operations was ₹11,840.68 lakhs, ₹12,700.22 lakhs, ₹12,476.60 lakhs and ₹7,324.98 lakhs respectively. The EBITDA for the Financial Years 2022, 2023, for the period ended January 23, 2024 and for the period from January 24, 2024 to March 31, 2024 were ₹495.41 lakhs, ₹1,749.30 lakhs, ₹2,176.09 and ₹1,385.66 lakhs, respectively. The Profit after Tax for the Financial Years 2022, 2023, for the period ended January 23, 2024 and for the period from January 24, 2024 to March 31, 2024 were ₹97.36 lakhs, ₹908.20 lakhs ₹1,185.64 lakhs, and ₹996.77 lakhs respectively.

For the Freshara Agro Exports IPO, the company is issuing shares at a pre-issue EPS of ₹12.83 and a post-issue EPS of ₹9.29. The pre-issue P/E ratio is 9.04x, while the post-issue P/E ratio is 12.49x. The company's ROCE for 2MFY24 is 10.04% and RoE for 2MFY24 is 36.96%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Freshara Agro Exports showing potential listing gains of 30%. Given the company's financial performance and the valuation of the IPO, we recommend only Risky Investors to Apply to the Fresharo Agro Exports 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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