Ideal Technoplast Industries IPO Review

Ideal Technoplast Industries Limited is one of the leading manufacturer and supplier of rigid plastic packaging offering suitable Industrial Packaging i.e. Industrial container, adhesive, lubes, oil etc. for storage, handling and transportation of the valuable products of their prospective customers since 2012 ranging from 20KG, 10KG, 5KG, 2KG, 1KG, 20Ltr, 10Ltr, 4Ltr, 2Ltr, 1Ltr etc.

Three experienced and technically sound promoters as well as directors, namely Mr. Vipulbhai Dulabhai Mendapara, Mr. Gauravbhai Chhaganbhai Gopani, and Mr. Prafulkumar Karsanbhai Vaghasiya, all residing in Surat, lead the foundation of the company with a combined 12 years of expertise in the Plastic Industry.

Financially, Ideal Technoplast revenue is stable from ₹569.47 Lakhs in FY21 to ₹568.13 Lakhs in FY22 and further to ₹1199.79 Lakhs in FY23 and currently at ₹910.91 Lakhs in 11MFY24. Similarly, EBITDA is also stable from ₹31.41 Lakhs in FY22 to ₹32.64 Lakhs in FY23 and further to ₹114.03 Lakhs in FY23 and currently at ₹398.04 Lakhs in 11MFY24. The PAT is stable from ₹9.82 Lakhs in FY22 to ₹10.53 Lakhs in FY23 and further to ₹50.62 Lakhs in FY23 and currently at ₹135.40 Lakhs in 11MFY24. This indicates a somewhat steady financial performance.

For the Ideal Technoplast IPO, the company is issuing shares at a pre-issue EPS of ₹9.65 and a post-issue EPS of ₹2.70. The pre-issue P/E ratio is 12.53x, while the post-issue P/E ratio is 44.81x against the industry P/E ratio of 34x. The company's ROCE for 11MFY24 is 32.95% and ROE for 11MFY24 is 43.95%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Ideal Technoplast indicates potential listing gains of 10% - 15%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid the Ideal Technoplast Limited IPO for Listing gain or long term investment purposes.