Shree Tirupati Balajee Agro Trading Company IPO opens today: Should you subscribe to it?
The IPO of Shree Tirupati Balajee Agro opens for bidding between September 5-9 as the shares are being sold in the range of Rs 78-83 per share with a lot size of 180 shares.
- Sep 5, 2024,
- Updated Sep 5, 2024 3:00 PM IST
The initial public offering (IPO) of Shree Tirupati Balajee Agro Trading Company (STBATCL) kicks off-for bidding on Thursday, September 5 and the issue can be subscribed until Monday, September 9. The packaging solutions provider is offering its shares in the range of Rs 78-83 apiece, where investors can apply for a minimum of 180 equity shares and its multiples thereafter. FIBCs are a more sustainable packaging solution than traditional packaging materials, such as drums and sacks. The company’s manufacturing capacity utilization is gradually expanding from 71.65 per cent in FY22 to 84.65 per cent in FY24 reflecting growth in customer base and company responding to growing demand for FIBC consumption, said SMIFS.
"We recommend to subscribe to the issue as a good long term investment as the company has scope for margin improvement going forward as oil prices trend lower resulting in lower raw material costs, which have been oscillating wildly over the last few years, the company has one of the best profitability and return ratios amongst its peers and the recent capex completed," it said.
Master Capital Services Rating: Subscribe Growing demand over the years, especially from the chemicals, construction, and food agriculture sectors has helped the FIBC sector reach healthy capacity utilization levels resulting in players going for capacity expansion. The company plans on taking advantage of this situation by focusing on its core competencies along with optimum utilization of its capacity, said Master Capital.
"The company also intends to develop a new product line following the trends of the market and using its vast product portfolio along with enhancing its technological capabilities to create a Global and Domestic presence. Investors looking to invest can invest in the IPO for the medium to long term," it said.
Arihant Capital Markets Rating: Subscribe The company is strengthening its presence in the FIBC sector by enhancing its manufacturing capabilities to meet rising demand, considering the global shift towards increased FIBC usage. With the growing traction for FIBCs in India, driven by increased industrial and agricultural production, the company foresees significant market opportunities, said Arihant Capital Markets.
"The company is also focusing on optimal capacity utilization. Company has seen substantial growth in domestic revenue, rising to Rs 275 crore in FY24 from Rs 170.55 crore in FY23, marking a 61 per cent increase. At the upper price band of Rs 83, the issue is priced at a P/E of 18.77 times based on the FY24 EPS of Rs 4.4. We have a 'subscribe' rating for the issue," it said.
The initial public offering (IPO) of Shree Tirupati Balajee Agro Trading Company (STBATCL) kicks off-for bidding on Thursday, September 5 and the issue can be subscribed until Monday, September 9. The packaging solutions provider is offering its shares in the range of Rs 78-83 apiece, where investors can apply for a minimum of 180 equity shares and its multiples thereafter. FIBCs are a more sustainable packaging solution than traditional packaging materials, such as drums and sacks. The company’s manufacturing capacity utilization is gradually expanding from 71.65 per cent in FY22 to 84.65 per cent in FY24 reflecting growth in customer base and company responding to growing demand for FIBC consumption, said SMIFS.
"We recommend to subscribe to the issue as a good long term investment as the company has scope for margin improvement going forward as oil prices trend lower resulting in lower raw material costs, which have been oscillating wildly over the last few years, the company has one of the best profitability and return ratios amongst its peers and the recent capex completed," it said.
Master Capital Services Rating: Subscribe Growing demand over the years, especially from the chemicals, construction, and food agriculture sectors has helped the FIBC sector reach healthy capacity utilization levels resulting in players going for capacity expansion. The company plans on taking advantage of this situation by focusing on its core competencies along with optimum utilization of its capacity, said Master Capital.
"The company also intends to develop a new product line following the trends of the market and using its vast product portfolio along with enhancing its technological capabilities to create a Global and Domestic presence. Investors looking to invest can invest in the IPO for the medium to long term," it said.
Arihant Capital Markets Rating: Subscribe The company is strengthening its presence in the FIBC sector by enhancing its manufacturing capabilities to meet rising demand, considering the global shift towards increased FIBC usage. With the growing traction for FIBCs in India, driven by increased industrial and agricultural production, the company foresees significant market opportunities, said Arihant Capital Markets.
"The company is also focusing on optimal capacity utilization. Company has seen substantial growth in domestic revenue, rising to Rs 275 crore in FY24 from Rs 170.55 crore in FY23, marking a 61 per cent increase. At the upper price band of Rs 83, the issue is priced at a P/E of 18.77 times based on the FY24 EPS of Rs 4.4. We have a 'subscribe' rating for the issue," it said.