Kross IPO Review

KROSS LIMITED was established in the year 1994, Kross Limited is an acknowledged specialist in manufacturing forging components for the top OEMs and Tier 1 companies in India. They manufacture a wide range of high performance and safety critical components for the commercial vehicle, tractor and trailer axle industry.

The Company's Chairman and Managing Director, Sudhir Rai, has been an integral part in the establishment and growth of the Company and with over three decades of experience in the automotive component manufacturing industry, and has been instrumental in their continued growth.

Financially, Kross revenue increased from ₹2,978.81 Millions in FY22 to ₹4,893.57 Millions in FY23 and currently at ₹6,214.64 Millions in FY24. Similarly, EBITDA also increased from from ₹295.48 Millions in FY22 to ₹575.22 Millions in FY23 and currently at ₹807.58 Millions in FY24. The PAT increased from ₹121.69 Millions in FY22 to ₹309.31 Millions in FY23 and currently at ₹448.81 Millions in FY24. This indicates a steady financial performance.

For the Kross IPO, the company is issuing shares at a pre-issue EPS of ₹8.30 and a post-issue EPS of ₹6.59. The pre-issue P/E ratio is 28.91x, while the post-issue P/E ratio is 34.53x against Industry P/E ratio is 24.85x. The company's ROCE for FY24 is 28.15% and ROE for FY24 is 30.57%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Kross potential listing gains of 10% - 13%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Kross Limited IPO for Listing gain or long term investment purposes.