Sati Poly Plast IPO Review

SATI POLY PLAST LIMITED is customer focused brand and provide an end-to-end solution for various flexible packaging needs. It manufactures & trades, the wide range of laminated flexible packaging material, chips packaging printed material, pouches & laminated printed rolls.

The Company is promoted by Mr. Balmukund Jhunjhunwala, Mrs. Anita Jhunjhunwala, Mr. Aditya Jhunjhunwala, Mr. Keshav Jhunjhunwala and Balmukund Jhunjhunwala HUF. The promoters have a combined experience of more than 10 (Ten) years in the field of flexible packaging industry.

Financially, Sati Poly Plast revenue increased to ₹17,522.39 Lakhs in FY22 to ₹19,096.69 Lakhs in FY23 but currently decreased to ₹17,940.98 Lakhs in FY24. Similarly, EBITDA jumped from ₹511.38 Lakhs in FY22 to ₹2,630.50 Lakhs in FY23 but currently at ₹926.72 Lakhs in FY24. The PAT also increased from ₹28.23 Lakhs in FY22 to ₹308.89 Lakhs in FY23 but currently stable at ₹328.64 Lakhs in FY24. This indicates a steady growth in financial performance.

For the Sati Poly Plast IPO, the company is issuing shares at a pre-issue EPS of ₹9.09 and a post-issue EPS of ₹6.64. The pre-issue P/E ratio is 14.30x, while the post-issue P/E ratio is 19.57x against the industry P/E ratio of 9.66x. The Big Players in packaging industry  is trading at Higher P/E and Industry P/E ratio of 27.66x. The company's ROCE for FY24 is 20.45%, and ROE for FY24 is 40.38%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Sati Poly Plast indicates potential listing gains of 40% - 45%. Given the company's financial performance and the valuation of the IPO, we recommend only Risk taking Investors to apply for Listing gain or Long Term Purposes.