Innomet Advanced Materials IPO Review

Innomet Advanced Materials is an manufacturer of of “METAL POWDERS & TUNGSTEN HEAVY ALLOYS” comes under the gamut of “POWDER METALLURGY”. The Company has all the necessary infrastructure for the development and manufacture of Metal Powders and Tungsten Heavy Alloys. 

The Company is led by Promoters named, LAKSHMI KANTHAMMA CHILAKAPATI has got requisite qualifications and adequate experience in the industry to take care of day-to-day affairs of the Company, other varied functions of the Company; SARITHA DEVI CHILAKAPATI has a work experience of more than 20 years in various departments like Purchase, Inventory management, Product costing, HR, ISO implementation, marketing and business development, strategy, and most importantly financial planning, working capital management, budgetary controls, financial structuring, mergers and demergers etc. and VINAY CHOUDHARY CHILAKAPATI has more than 15 years of experience in the Powder Metal industry. He completed his education in Mechanical Engineer.
 
Financially, Innomet Advanced Materials revenue increased from ₹2,240.35 Lakhs in FY22 to ₹2,714.78 Lakhs in FY23 and currently at ₹2,955.45 Lakhs in FY24. Similarly, EBITDA increased from ₹171.57 Lakhs in FY22 to ₹574.49 Lakhs in FY23 and currently at ₹494.86 Lakhs in FY24. The PAT also increased from ₹55.17 Lakhs in FY22 to ₹321.59 Lakhs in FY23 and currently at ₹251.91 Lakhs in FY24. This indicates a steady financial performance.

For the Innomet Advanced Materials IPO, the company is issuing shares at a pre-issue EPS of ₹2.65 and a post-issue EPS of ₹1.94. The pre-issue P/E ratio is 37.73x, while the post-issue P/E ratio is 51.54x. The company's ROCE for FY24 is 16.27% and ROE for FY24 is 21.37%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Innomet Advanced Materials showing potential listing gains of 35% - 40%. Given the company's financial performance and the valuation of the IPO, we recommend only Risky Investors to Apply to the Innomet Advanced Materials Limited IPO for Listing gain or long term investment purposes.