Solve Plastic Products IPO Review

Solve Plastic Products is engaged in manufacturing of comprehensive range of uPVC (Unplasticized Polyvinyl Chloride) Pipes and Rigid PVC Electrical Conduits. The Company is committed towards constant innovations in drinking water piping solutions and electrical conduit fittings technologies to meet the constantly increasing demands.

Mr. Sudheer Kumar Balakrishnan Nair is Managing Director and also the Promoter of the Company and he possesses experience of more than 35 years in the production and manufacturing related activities of Company’s business.

Financially, Solve Plastic Products revenue increased from ₹5,577.89 Lakhs in FY22 to ₹6,225.43 Lakhs in FY23 and currently at ₹4,715.73 Lakhs in FY24. Similarly, EBITDA also increased from ₹104.52 Lakhs in FY22 to ₹193.80 Lakhs in FY23 and currently at ₹258.45 Lakhs in FY24. The PAT also increased from ₹-40.71 Lakhs in FY22 to ₹120.27 Lakhs in FY23 and currently at ₹142.48 Lakhs in FY24. This indicates a steady financial performance.

For the Solve Plastic Products IPO, the company is issuing shares at a pre-issue EPS of ₹4.64 and a post-issue EPS of ₹3.26. The pre-issue P/E ratio is 19.61x, while the post-issue P/E ratio is 27.91x against the industry P/E ratio of 39.31x. The company's ROCE for FY24 is 0.35% and ROE for FY24 is 0.46%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Solve Plastic Products indicates potential listing gains of 5% - 10%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid the Solve Plastic Products Limited IPO for Listing gain or long term investment purposes.