OBSC Perfection IPO Review

OBSC Perfection is a precision metal component manufacturer offering a diversified suite of precision engineering products which are high-quality engineered parts across end-user industries and geographies. They primarily cater to top OEMs who ultimately supply various components and parts to top automotive manufacturing companies of India.

The Company is led by the Promoters, namely, SAKSHAM LEEKHA, ASHWANI LEEKHA, SANJEEV VERMA, RAJNI VERMA, ASHA NARANG, SANDEEP NARANG, RICHARD BLUM, ADRIANNE BLUM, PASCAL BLUM, SIMON BLUM, who have vast experience in the field of steel and auto components industry along with other industries who act as a driving force of the Company. 

The Revenues from operations for the Five months period ended August 31, 2024 and the Fiscals 2024, 2023 and 2022 were ₹5,700.15 lakhs, ₹11,611.41 lakhs, ₹9,691.03 lakhs, and ₹5,672.42 lakhs, respectively. The EBITDA for the Five months period ended August 31, 2024 and the Fiscals 2024, 2023 and 2022 were ₹1,031.99 lakhs, ₹2,076.10 lakhs, ₹973.81 lakhs and ₹708.39 lakhs, respectively. The Profit after Tax for the Five months period ended June 30, 2024 and the Fiscals 2024, 2023 and 2022 was ₹603.05 lakhs, ₹1,221.21 lakhs, ₹457.39 lakhs and ₹360.11 lakhs, respectively.

For the OBSC Perfection IPO, the company is issuing shares at a pre-issue EPS of ₹6.84 and a post-issue EPS of ₹4.99. The pre-issue P/E ratio is 14.61x, while the post-issue P/E ratio is 20.04x against the Industry P/E ratio is 40.45x. The company's ROCE for FY24 is 31.49% and RoE for FY24 is 40.61%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of OBSC Perfection showing potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the OBSC Perfection 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.