In today’s briefing:
- Emcure Pharmaceuticals Pre-IPO: IPO Price Band Set; Steep Valuation Offers Limited Upside Potential
- The Beat Ideas- Ramkrishna Forgings: A Strategic Growth Opportunity
- Rajshree Polypack (RPPL): All Set for a Strong FY25
- Jyoti Resins and Adhesives- Forensic Analysis
- Kolte Patil: Medium-Term Outlook Remains Robust
Emcure Pharmaceuticals Pre-IPO: IPO Price Band Set; Steep Valuation Offers Limited Upside Potential
- Emcure Pharmaceuticals seeks to raise INR19.5B in upcoming IPO through a fresh issue of INR8B and an OFS of 11.4M shares. IPO price band has been set at INR960–1,008.
- The issue will open for subscription on July 3 and close on July 5. Bidding for anchor investors will open on July 2. Lot size for bidding is 14 shares.
- IPO proceeds will be used to repay debt. As at March 31, 2024, the company’s outstanding borrowings stood at INR21B against cash balance of INR2B.
The Beat Ideas- Ramkrishna Forgings: A Strategic Growth Opportunity
- Rising exports, as it has higher margins and Growth in Non-Auto sectors
- Acquisition of ACIL, JMT auto, TSUYO, and Multitech Auto will drive revenue
- Reducing dependency on a single product or categories and single customer
Rajshree Polypack (RPPL): All Set for a Strong FY25
- RPPL executed well in FY24 with sales volume growth at 18% YoY. However, sudden and significant contraction in raw material prices dampened FY24 sales value growth to just 9% YoY.
- Exports sustained its quarterly run-rate of INR 10cr+ in Q4FY24, resulting in FY24 aggregate exports sales at INR 42cr. Exports contributed 15% of revenues in FY24 vs 5% in FY23.
- RPPL is also making good progress with its new initiatives. Its Olive Ecopak venture began commercial production in Mar 2024. Its injection molding segment is also scaling up well.
Jyoti Resins and Adhesives- Forensic Analysis
- Jyoti Resins and Adhesives (JRA IN) engages in manufacturing of synthetic wood adhesives under ‘Euro’ brand and claims to be the second largest player in its respective market.
- While on ground, Euro has gained good traction and has received positive feedbacks, there are however several takeaways noticed on the forensic end.
- These include Lack of clarity on revenue figures, low FA base, lack of disclosures of important accounting policies such as leases and customer rewards, etc.
Kolte Patil: Medium-Term Outlook Remains Robust
- Kolte Patil reported a muted Q4FY24 with sales value flattish at INR 743cr vs INR 746cr QoQ. However, overall FY24 ended strong with sales value growing at 25%+ YoY.
- New project acquisition ended FY24 at INR 6000cr+, which was below the guidance of INR 8000cr. However, Kolte Patil remains upbeat and has guided to do INR 8000cr in FY25.
- Even with lower than expected project acquisitions, Kolte Patil is well positioned with INR 25000cr worth of projects portfolio. It has guided for 25% CAGR in sales value through FY25-27.
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