SYLVAN PLYBOARD (INDIA) IPO Review

Sylvan Plyboard has its roots tracing back more than 70 years, since 1951. Sylvan Plyboard procures raw materials from all across the globe, making sure that they are of the finest quality. Sylvan Plyboard enjoys a pan-India presence through a well-defined channel network. The factory is equipped with Carbon filters and Effluent water treatment plant that helps cause, and nurture the environment in as many ways as possible, making their factory ecologically friendly. All of these are part of their Zero Waste Policy in order to give back to the environment. Sylvan Ply delivers the best plywood, if you're a builder, architect, interior designer, or homeowner.

The Company have a professional and experienced Promoters named, Mr. Anand Kumar Singh & Mr. Jai Prakash Singh, in which Mr. Anand Kr. Singh has a experience of more than 25 years in the Plywood and Timber Industry where as Mr. Jai Prakash Singh has a experience of over 45 years in the Timber Industry.

Financially, Sylvan Plyboard revenue increased from ₹11,028.91 Lakhs in FY21 to ₹17,292.63 Lakhs in FY22 and further increased to ₹19,915.32 Lakhs in FY23 and currently at ₹16,193.24 Lakhs for 9MFY24. Similarly, EBITDA increased from ₹805.86 Lakhs in FY21 and ₹1,053.40 Lakhs in FY22 and further increased in FY23 at ₹1,311.82 Lakhs and currently stable at ₹1,367.81 Lakhs for 9MFY24. The PAT increased from ₹37.09 Lakhs in FY21 to ₹305.31 Lakhs in FY22 and further showing growth at ₹352.85 Lakhs in FY23 and currently at ₹447.98 Lakhs for 9MFY24. This indicates steady growth in financial performance.

For the Sylvan Plyboard IPO, the company is issuing shares at a pre-issue EPS of ₹2.53 and a post-issue EPS of ₹1.82. The pre-issue P/E ratio is 21.73x, while the post-issue P/E ratio is 30.21x against the industry P/E ratio of 34.4x. The company's ROCE for 9MFY24 is 7.56%, and ROE for 9MFY24 is 4.90%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Shivalic Power Control indicates potential listing gains of 60%-70% . Given the company's financial performance and the valuation of the IPO, we recommend Investors to apply to the IPO for listing gains or long term Investment purposes.