Sunlite Recycling Industries IPO Review

Sunlite Recycling Industries is engaged in the business of manufacturing of copper rods & wires, copper earthing wires, copper earthing strips, copper conductors, copper wire bars etc. through recycling of copper scrap, which has electrical and mechanical properties suitable for applications in power generation, transmission, distribution and electronic industries.
 
The Company is managed by their Promoters, Prahladrai Ramdayal Heda has experience of 15 years in the industry of manufacturing of copper rods, Nitin Kumar Heda has approx. 17 years of experience, Khushboo Manishkumar Heda has approx. 06 years of experience and Manish Kumar Heda has approx. 15 years of experience in the same industry. 

Financially, Sunlite Recycling Industries revenue jumped from ₹93,791.80 Lakhs in FY22 to ₹115,039.91 Lakhs in FY23 and currently increased to ₹116,655.09 Lakhs in FY24. Similarly, EBITDA also increased from ₹990.75 Lakhs in FY22 to ₹1,422.88 Lakhs in FY23 and currently increased at ₹1,836.07 Lakhs in FY24. The PAT also increased from ₹426.03 Lakhs in FY22 to ₹560.27 Lakhs in FY23 and currently increased at ₹890.36 Lakhs in FY24. This indicates a steady financial performance.

For the Sunlite Recycling IPO, the company is issuing shares at a pre-issue EPS of ₹19.35 and a post-issue EPS of ₹8.18. The pre-issue P/E ratio is 5.43x, while the post-issue P/E ratio is 12.83x against the industry P/E ratio of 16.19x. The company's ROCE for FY24 is 29.49% and ROE for FY24 is 75.26%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Sunlite Recycling indicates potential listing gains of 45% - 50%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply the Sunlite Recycling Industries Limited IPO for Listing gain or long term investment purposes.