Rajputana Biodiesel IPO Review

Rajputana Biodiesel IPO Review

Rajputana Biodiesel Limited (RBL) specializes in manufacturing and supplying biofuels, including biodiesel, and by-products such as glycerine and fatty acids, catering to diverse industry needs. Operating from a 4,000 sq. m. facility in Phulera, Rajasthan, RBL has an approved production capacity of 30 KLPD and an installed capacity of 24 KLPD. The company employs a state-of-the-art, flexible manufacturing setup that accommodates multiple feedstocks, enabling it to adapt swiftly to market demands. RBL is actively exploring export opportunities to enhance its market reach and contribute to the renewable energy sector.

The Managing Director and one of the Promoters, Mr. Sarthak Soni has over 7 years of experience in the Biodiesel Industry . Mr. Sudeep Soni, one of the Promoters, Chairman and Executive Director, has over 24 years in Real estate industry, simultaneous experience of 23 years in Gems and Jewellery and about 7 years in Biodiesel industry.

Financially, Revenue for the quarter ended July 31, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022 was  ₹ 2779.18 Lakhs, ₹ 5367.51 Lakhs, ₹ 2354.06 Lakhs and ₹1746.07 Lakhs  respectively. The EBITDA for the quarter ended July 31, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022 were ₹ 421.91 Lakhs, ₹ 766.91 Lakhs, ₹ 350.66 Lakhs and ₹ 161.70 Lakhs  respectively. The Profit after Tax for the quarter ended July 31, 2024 and Fiscal 2024, Fiscal 2023 and Fiscal 2022 were ₹ 259.59 Lakhs, ₹ 452.43 Lakhs, ₹ 168.83 Lakhs and ₹ 19.97 Lakhs respectively. This indicates steady growth in financial performance.

For the  Rajputana Biodiesel IPO, the company is issuing shares at a pre-issue EPS of ₹9.16 and a post-issue EPS of ₹6.43. The pre-issue P/E ratio is 14.19x, while the post-issue P/E ratio is 20.21x against Industry P/E ratio is 31x. The company's ROCE for FY24 is 22.19% and RoNW for FY24 is 34.43%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Rajputana Biodiesel showing potential listing gains of 23%. Given the company's financial performance and the valuation of the IPO, we recommend only Risky Investors to Apply to the Rajputana Biodiesel Limited IPO only for Listing gain, while safe traders can Avoid.

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.
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