Jeyyam Global Foods IPO Review

Jeyyam Global Foods- a brand with a legacy spanning over 40 years in the Chana industry. Their experience in setting up and operating one of Asia's largest chana product manufacturing units has helped them understand & build a thriving supply chain ecosystem.

The Company is led by Promoters, named, Mr. Amit Agarwal has over one decade of experience in the Real Estate Industry & General Trading Industry and around 5 years of experience in hospitality Industry, Mr. Shripal Veeramchand Sanghvi has been in the business of Tobacco for over 30 years and is a pioneer in FMCG product segment in South India for over the past 15 years and Mrs. Sujathaa Mehta has over one decades of experience in the Apparel industry and Plastic Manufacturing Industry; further she has experience of around 5 years in Chemical Products manufacturing and sustainable energy.

Financially, Jeyyam Global Foods revenue jumped from ₹25,388.30 Lakhs in FY22 to ₹38,220.62 Lakhs in FY23 and currently jumped to ₹62,983.42 Lakhs in FY24. Similarly, EBITDA increased from ₹1,152.19 Lakhs in FY22 to ₹1,700.95 Lakhs in FY23 and currently at ₹3,292.30 Lakhs in FY24. The PAT also increased from ₹436.80 Lakhs in FY22 to ₹766.80 Lakhs in FY23 and currently at ₹1,509.11 Lakhs in FY24. This indicates a steady financial performance.

For the Jeyyam IPO, the company is issuing shares at a pre-issue EPS of ₹4.26 and a post-issue EPS of ₹3.17. The pre-issue P/E ratio is 14.31x, while the post-issue P/E ratio is 19.24x against Industry P/E ratio is 9.80x. The company's ROCE for FY24 is 26.27% and ROE for FY24 is 18.81%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Jeyyam potential listing gains of 55% - 60%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Jeyyam Global Foods Limited IPO for Listing gain or long term investment purposes.