Kenrik Industries IPO Review

Kenrik Industries is engaged in manufacturing, wholesaling and supplying of plain and studded gold Jewellery and Ornaments. The Company is mainly focused on traditional Indian jewellery. Their products include handmade gold jewellery studded with precious and semi-precious stones such as diamond, ruby, cubic zirconia etc. Their product portfolio includes rings, earrings, armlet, pendants, nose rings, bracelets, chains, necklaces, bangles, watches, luxury items and other wedding jewellery.

The Promoters Nitinkumar Dalpatbhai Shah and Nihar Nitinbhai Shah have around 25 years of experience and nearly half decade respectively in gems and jewellery industry and with their innovative business ideas, in-depth knowledge and excellent management skills, they have served the customers proficiently.

The Revenues from operations for the period ended on Oct 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 4,218.58 Lakh, ₹ 7,097.46 Lakh, ₹ 5,204.14 Lakh and ₹ 3,269.17 Lakh respectively. The EBITDA for the period ended on Oct 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 105.47 Lakh, ₹ 146.43 Lakh, ₹ 69.91 Lakh, and ₹ 54.62 Lakh, respectively. The Profit after Tax for the period ended on Oct 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 78.19 Lakh, ₹ 108.46 Lakh, ₹ 47.44 Lakh, and ₹ 38.12 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 1.21 and post-issue EPS of ₹ 0.87 for FY24. The pre-issue P/E ratio is 20.66x, while the post-issue P/E ratio is 28.81x against the Industry P/E ratio is 24x. The company's ROCE for FY24 is 10.85%, ROE for FY24 is 9.01% and RoNW is 8.62%. The Annualised EPS based on the latest financial data is ₹ 2.55 and PE ratio is 9.78x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Kenrik Industries showing listing gains of 0.00 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Kenrik Industries Limited IPO for Listing gain or Long Term Investment Purposes.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.