Subam Papers IPO Review

Subam Papers is engaged in the manufacturing of Kraft Paper and Paper Products. They proudly call themselves as a packaging solution providing company. Subam started its journey in the year 2004 with manufacturing of paper cones and later expanded the product base by adding Duplex board and Kraft paper in its portfolio.

Instrumental in driving this path is the Managing Director and Promoter, Mr. T. Balakumar, a seasoned professional with over 19 years of invaluable experience in the realm of paper and paper products. In addition to his role in the company, Mr. Balakumar is also the Chairman of the Development Council for Pulp, Paper, and Allied Industries, Government of India, further showcasing his influential presence in the industry.

Financially, Revenue in Fiscal 2024, Fiscal 2023 and Fiscal 2022 was ₹49,697.31 Lakhs, ₹51,062.36 Lakhs and ₹33,259.87 Lakhs, respectively. The EBITDA for the Fiscals 2024, 2023 and 2022 were ₹7,272.10 Lakhs, ₹3,148.87 Lakhs and ₹4,071.90 Lakhs respectively. The Profit after Tax for the Fiscals 2024, 2023 and 2022 were ₹3,341.80 Lakhs, ₹-26.79 Lakhs and ₹2,600.23 Lakhs respectively. This indicates steady growth in financial performance.

For the Subam Papers IPO, the company is issuing shares at a pre-issue EPS of ₹20.53 and a post-issue EPS of ₹14.37. The pre-issue P/E ratio is 7.40x, while the post-issue P/E ratio is 10.57x against the Industry P/E ratio is 9.59x. The company's ROCE for FY24 is 20.84% and ROE for FY24 is 16.79%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Subam Papers showing potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Subam Papers Limited IPO for Listing gain or long term investment purposes.

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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