Indian Phosphate IPO Review

Indian Phosphate is mainly engaged in the production of Linear Alkylbenzene Sulphonic Acid LABSA 90%, popularly known as LABSA, is an anionic surfactant and it is used in the formulation of all types of detergent powders, cakes, toilet cleaners and liquid detergents. 

The organization is run by a competent and devoted management team and the main driving force behind the company's success lies in one of their promoters, namely Mr. Ravindra Singh.

Financially, Indian Phosphate revenue jumped from ₹55,838.56 Lakhs in FY22 to ₹77,093.20 Lakhs in FY23 and currently at ₹70,625.53 Lakhs in FY24. Similarly, EBITDA is almost stable from ₹2,362.15 Lakhs in FY22 to ₹2,476.39 Lakhs in FY23 and currently at ₹2,303.42 Lakhs in FY24. The PAT is also somewhat stable from ₹1,616.61 Lakhs in FY22 to ₹1,659.53 Lakhs in FY23 and currently at ₹1,347.32 Lakhs in FY24. This indicates a somewhat steady financial performance.

For the Indian Phosphate IPO, the company is issuing shares at a pre-issue EPS of ₹7.41 and a post-issue EPS of ₹5.39. The pre-issue P/E ratio is 13.36x, while the post-issue P/E ratio is 18.36x against the industry P/E ratio is 41.31x. The company's ROCE for FY24 is 20.94% and ROE for FY24 is 18.14%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Indian Phosphate potential listing gains of 45% - 50%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Indian Phosphate Limited IPO for Listing gain or long term investment purposes.