Kataria Industries IPO Review

Kataria Industries Limited is the embodiment of strength and resilience for wires and strands. Their new identity sets us apart in the marketplace, reflecting an unwavering attitude rooted in tenacity, conviction, and cutting-edge technology.

The Company is led by strong promoters named, Arun Kataria, who is having experience of more than 19 years in the management of manufacturing company; Anoop Kataria is having more than 10 years of experience in the field of finance, Sales and marketing and Strategic decision making and Sunil Kataria is having more than 15 years experience in the field of operational oversight and financial management.

Financially, Kataria Industries revenue increased from ₹25,048.91 Lakhs in FY22 to ₹33,393.09 Lakhs in FY23 and currently increased to ₹34,148.63 Lakhs in FY24. But, EBITDA decreased from ₹1,824.78 Lakhs in FY22 to ₹1,576.61 Lakhs in FY23 and currently increased at ₹2,293.85 Lakhs in FY24. The PAT is stable from ₹738.34 Lakhs in FY22 to ₹777.83 Lakhs in FY23 and currently at ₹1,002.11 Lakhs in FY24. This indicates a steady growth in financial performance.

For the Kataria Industries IPO, the company is issuing shares at a pre-issue EPS of ₹6.32 and a post-issue EPS of ₹4.65. The pre-issue P/E ratio is 15.18x, while the post-issue P/E ratio is 20.64x against the industry P/E ratio of 39.54x. The company's ROCE for FY24 is 17.40%, and ROE for FY24 is 24.53%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Kataria Industries indicates potential listing gains of 25% - 30% . Given the company's financial performance and the valuation of the IPO, we recommend only Risky Investors to apply for listing gains or Long Term Investment Purposes.