Namo E-waste Management IPO Review

NAMO eWaste is a sustainable and cost-effective electronic waste management company in India. They provide comprehensive e-Recycling services in India for disposing of eWaste efficiently and in an environmentally friendly way, making their facility one of the most sustainable in the country with zero waste discharge technology.

The Company is managed by one of their Promoters, Akshay Jain, who has over 09 years of experience in the field of E-Waste Management Industry and has been instrumental in taking major policy decision of the Company.

Financially, Namo eWaste revenue increased from ₹4509.00 Lakhs in FY22 to ₹5,856.07 Lakhs in FY23 and currently jumped to ₹10,107.62 Lakhs in FY24. Similarly, EBITDA increased from ₹259.26 Lakhs in FY22 to ₹386.48 Lakhs in FY23 and currently at ₹1,117.77 Lakhs in FY24. The PAT also increased from ₹180.89 Lakhs in FY22 to ₹241.56 Lakhs in FY23 and currently at ₹682.90 Lakhs in FY24. This indicates a steady financial performance.

For the Namo eWaste IPO, the company is issuing shares at a pre-issue EPS of ₹4.33 and a post-issue EPS of ₹2.98. The pre-issue P/E ratio is 19.63x, while the post-issue P/E ratio is 28.52x against Industry P/E ratio is 95.79x. The company's ROCE for FY24 is 20.71% and ROE for FY24 is 21.54%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Namo eWaste potential listing gains of 65% - 70%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Namo eWaste Management Limited IPO for Listing gain or long term investment purposes.