Mamata Machinery IPO Review

Mamata is one of leading manufacturers and Exporters of Plastic bag / Pouch Making Machines globally with installed base of more than 4500 Machines in more than 75 countries. The Flexible Packaging / Converting Markets are ever changing. Cost competitiveness while addressing change quickly without compromising the quality and versatility is the key to success.

The Company is led by strong and experienced Promoters, namely, MAHENDRA PATEL, CHANDRAKANT PATEL, NAYANA PATEL, BHAGVATI PATEL, MAMATA GROUP CORPORATE SERVICES LLP AND MAMATA MANAGEMENT SERVICES LLP.

The Revenues from operations for the period ended on Jun 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 291.93 Million, ₹ 2,413.0 Million, ₹ 2,101.29 Million and ₹ 1,965.68 Million respectively. The EBITDA for the period ended on Jun 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 12.5 Million, ₹ 518.75 Million, ₹ 330.07 Million, and ₹ 342.58 Million, respectively. The Profit after Tax for the period ended on Jun 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 2.18 Million, ₹ 361.25 Million, ₹ 225.05 Million, and ₹ 216.97 Million respectively.

For the Mamata Machinery IPO, the company is issuing shares at a pre-issue EPS of ₹ 14.65 and a post-issue EPS of ₹14.68. The pre-issue P/E ratio is 16.59x, while the post-issue P/E ratio is 16.55x against the Industry P/E ratio is 44x. The company's ROCE for FY24 is 31.29% and RoE for FY24 is 27.76%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Mamata Machinery showing potential listing gains of 81.24%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Mamata Machinery Limited IPO for Listing gain or long term investment purposes.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

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 during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
You can connect with the Author on Telegram, YouTube and Website.