Shree Tirupati Balajee Agro Trading Company IPO Review

Shree Tirupati Balajee Agro Trading Company Limited is one of the strongest manufacturers and suppliers of FIBC in the Indian domestic market and one of the fastest growing exporters. STB is the preeminent destination for world-class FIBC (flexible intermediate bulk container) products and solutions customized to the bulk packaging requirements of a wide range of discerning global customers.

The company is managed by a professional management team led by Mr. Binod Kumar Agarwal, their Promoter and Managing Director, who is a qualified Chemical Engineer with over three and a half decades of experience.

Financially, Shree Tirupati Balajee revenue increased from ₹45,378.77 Millions in FY22 to ₹47,813.65 Millions in FY23 and currently jumped to ₹55,282.11 Millions in FY24. Similarly, EBITDA increased from ₹4,051.35 Millions in FY22 to ₹5,074.43 Millions in FY23 and currently at ₹7,507.04 Millions in FY24. The PAT also increased from ₹1,365.90 Millions in FY22 to ₹2,071.80 Millions in FY23 and currently at ₹3,607.27 Millions in FY24. This indicates a steady financial performance.

For the Shree Tirupati Balajee IPO, the company is issuing shares at a pre-issue EPS of ₹5.74 and a post-issue EPS of ₹4.42. The pre-issue P/E ratio is 14.48x, while the post-issue P/E ratio is 18.77x against Industry P/E ratio is 30.74x. The company's ROCE for FY24 is 16.29% and ROE for FY24 is 20.84%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Shree Tirupati Balajee 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 Shree Tirupati Balajee Agro Trading Company Limited IPO for Listing gain or long term investment purposes.