Patel Chem Specialities IPO Review

Patel Chem Specialties Limited is a trusted leader in the manufacturing of high-quality pharmaceutical excipients - raw material for drug formulation. With decades of experience, they specialize in producing a wide range of excipients, including Sodium Carboxy Methyl Cellulose (Sodium CMC), Sodium Starch Glycolate (SSG), Croscarmellose sodium (CCS), Calcium CMC, Magnesium stearate andpregelatinised starch and also producing key API intermediate Sodium Monochloroacetate.

The leadership team, led by experienced promoters Bhupesh Patel and Anshu Patel, has been a driving force behind the Company’s success. Bhupesh Patel, the Managing Director, has more than 30 years of experience in the pharmaceuticals and nutraceutical industry. He has been instrumental in establishing the Company’s manufacturing plants and leads the product development & marketing strategies. Anshu Patel, the Whole-Time Director, holds a bachelor degree in Homoeopathic Medicine and Surgery and brings a decade of experience in the pharmaceuticals and nutraceutical industry. She oversees the Company’s strategic plan and its operations across various functions. Their industry experience and clear vision have helped the Company grow and stay competitive.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 10,555.18 Lakh, ₹ 8,271.61 Lakh and ₹ 6,974.75 Lakh. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 1,573.02 Lakh, ₹ 1,202.18 Lakh and ₹ 582.64 Lakh. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 1,056.52 Lakh, ₹ 765.62 Lakh and ₹ 288.61 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 6.1 and post-issue EPS of ₹ 4.25 for FY24. The pre-issue P/E ratio is 13.77x, while the post-issue P/E ratio is 19.77 against the Industry P/E ratio is 18x. The company's ROCE for FY24 is 36.26%, ROE for FY24 is 29.85% and RoNW is 24.32%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Patel Chem Specialities showing listing gains of 13.09 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Patel Chem Specialities 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.