Paramatrix Technologies IPO Review

At Paramatrix, they create cutting-edge technological solutions to empower businesses and individuals worldwide. Established with a vision to use technology for good, they strive to deliver solutions across sectors and geographies and drive a positive change in the digital landscape.
 
The Company is led by strong Promoters, named, Mukesh Keshubhai Thumar and he has more than 25 years of experiences in integrating technology in BFSI sector companies.

Financially, Paramatrix revenue increased from ₹2,824.66 Lakhs in FY22 to ₹3,332.44 Lakhs in FY23 and currently at ₹2,859.93 Lakhs in FY24. Similarly, EBITDA is stable from ₹964.36 Lakhs in FY22 to ₹973.64 Lakhs in FY23 and currently at ₹565.03 Lakhs in FY24. The PAT is somewhat stable from ₹678.94 Lakhs in FY22 to ₹707.56 Lakhs in FY23 and currently at ₹413.17 Lakhs in FY24. This indicates somewhat a steady financial performance.

For the Paramatrix IPO, the company is issuing shares at a pre-issue EPS of ₹4.72 and a post-issue EPS of ₹3.59. The pre-issue P/E ratio is 23.30x, while the post-issue P/E ratio is 30.64x against the industry P/E ratio is 38.80x. The company's ROCE for FY24 is 17.29% and ROE for FY24 is 13.63%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Paramatrix potential listing gains of 35% - 40%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Paramatrix Technologies Limited IPO for Listing gain or long term investment purposes.