Nikita Papers IPO Review

Nikita Papers is one of the leading manufacturers of recycled kraft paper, unfolding innovation with cutting-edge technology. From local to international markets, their profound team deliver unparalleled quality kraft paper in order to lead their world towards sustainability. With a vision to preserve the beauty of their environment, they are manufacturing kraft paper from 100% recycled waste paper and embracing innovation in every step of the process.

Mr. Ashok Kumar Bansal, with over 35 years of overall experience and more than 25 years specifically in the paper industry, leads the Nikita as its Chairman.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 27,238.28 Lakh, ₹ 34,678.28 Lakh, ₹ 40,130.91 Lakh and ₹ 35,848.57 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 4,380.46 Lakh, ₹ 4,840.04 Lakh, ₹ 3,055.80 Lakh, and ₹ 2,962.20 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,568.11 Lakh, ₹ 1,659.53 Lakh, ₹ 864.52 Lakh, and ₹ 695.21 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 9.81 and post-issue EPS of ₹ 6.73 for FY24. The pre-issue P/E ratio is 10.60x, while the post-issue P/E ratio is 15.46x against the Industry P/E ratio is 22x. The company's ROCE for FY24 is 28.71%, ROE for FY24 is 21.45% and RoNW is 21.45%. The Annualised EPS based on the latest financial data is ₹ 11.50 and PE ratio is 9.03x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Nikita Papers showing listing gains of 8.32 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Nikita Papers 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.