Mehul Colours IPO Review

At Mehul Colours, they innovate masterbatch solutions to enhance the functionality, aesthetics, and performance of plastics across industries like packaging, automotive, and construction. Their blends of pigments, additives, and resins are tailored for vibrant colors, UV resistance, and specialized properties. With a focus on quality, sustainability, and customization, our state-of-the-art facilities and expert team ensure consistent excellence. They don’t just manufacture masterbatches; they craft solutions that shape the future of plastics. 

The Company is led by the Promoters and Directors, Mehul Pravinchandra Joshi and Bhakti Mehul Joshi, each bringing experience in the Masterbatches and pigment industry. Their experience has played a key role in shaping the company’s growth. The company believe that their expertise, along with the support of the senior management team, continues to drive the company’s business and market reach.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 2,371.29 Lakh, ₹ 2,265.67 Lakh and ₹ 2,136.60 Lakh. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 778.18 Lakh, ₹ 469.47 Lakh and ₹ 437.19 Lakh. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 550.30 Lakh, ₹ 321.82 Lakh and ₹ 293.96 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 7.3 and post-issue EPS of ₹ 5.2 for FY24. The pre-issue P/E ratio is 9.86x, while the post-issue P/E ratio is 13.80x against the Industry P/E ratio is 27x. The company's ROCE for FY24 is 43.53%, ROE for FY24 is 38.46% and RoNW is 32.26%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Mehul Colours showing listing gains of 15.92 %.Given the company's financial performance and the valuation of the IPO, we recommend Riksy Investors to Apply to the Mehul Colours Limited IPO for Listing gain.

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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.