Orient Technologies IPO Review

Orient Technologies is an information technology (IT) solutions provider headquartered in Mumbai, Maharashtra incorporated in the year 1997. Over the years they have built deep expertise to develop products and solutions for specialised disciplines across their business verticals.
 
The Company is led by experienced Promoters named, Ajay Baliram Sawant who has more than 25 years of experience, Umesh Navnitlal Shah has more than 25 years of experience, Ujwal Arvind Mhatre has over 25 years of experience and Jayesh Manharlal Shah has over 25 years of experience in information and technology industry.

Financially, Orient revenue increased from ₹4,691.23 Millions in FY22 to ₹5,420.09 Millions in FY23 and currently at ₹6,068.64 Millions in FY24. EBITDA is somewhat stable from ₹458.25 Millions in FY22 to ₹486.44 Millions in FY23 and currently at ₹566.18 Millions in FY24. The PAT is also stable from ₹334.93 Millions in FY22 to ₹382.98 Millions in FY23 and currently at ₹414.80 Millions in FY24. This indicates a steady financial performance.

For the Orient Technologies IPO, the company is issuing shares at a pre-issue EPS of ₹11.80 and a post-issue EPS of ₹9.95. The pre-issue P/E ratio is 17.45x, while the post-issue P/E ratio is 20.70x against the industry P/E ratio of 29.87x. The company's ROCE for FY24 is 32.5% and ROE for FY24 is 27.26%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Orient indicates potential listing gains of 50%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply the Orient Technologies Limited IPO for Listing gain or long term investment purposes.