Analysis of Upcoming IPO - Platinum Industries Limited

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 23rd February 2024 - 06:00 pm

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What Platinum Industries Limited do?

Platinum Industries Limited is stabilizer-producing firm that was founded in August 2016. firm produces lubricants, CPVC additives, & PVC stabilizers. Products from firm are utilized in packaging materials, rigid PVC foam boards, SPC floor tiles, electrical wires & cables, PVC fittings, PVC pipes, & more. Situated in Palghar, Maharashtra, company's production facility has 21,000 square feet of land.

Platinum Industries Ltd. Strength  

1. Platinum’s revenue from operations grew at CAGR of 42.11% in six years, from ₹284.19M in 2018 to ₹2,340.56M in 2023.
2. As of July 2023, company has twelve distribution centres spread across India.
3. As of May 31st, 2023, production unit has 71 employees & 17 workers.

Platinum Industries Limited Financials 

Analysis & Interpretations of Upcoming IPO – Platinum Industries Ltd. 

Assets 
1. Assets have been consistently increasing over years, indicating company's growth & expansion.
2. Significant increase in assets from March 2021 to March 2022 suggests period of substantial investment or acquisition.
3. To pursue this trend, company should continue investing in assets that support its growth strategy while ensuring proper asset management to maximize returns & mitigate risks.

Revenue 
1. Revenue shows fluctuating trend over years, with significant increase from March 2021 to March 2022 followed by decrease by Sep 2023.
2. While recent data for Sep 2023 reflects lower revenue compared to previous period, it's important to note that this data only covers 6-month period, & direct comparison with yearly data might not be appropriate.
3. To pursue revenue growth, company should focus on diversifying its revenue streams, expanding its customer base, & improving sales & marketing efforts while maintaining keen eye on cost efficiency.

Profit After Tax
1. Profit After Tax  has shown general increasing trend over years, indicating improving profitability.
2. Recent PAT for Sep 2023 is lower compared to March 2023, which might be result of seasonal factors or specific operational challenges within that period.
3. To pursue higher profitability, company should focus on enhancing operational efficiency, optimizing cost structures, & continuously innovating products or services to increase margins.

Net Worth
1. Net Worth has been steadily increasing over years, reflecting company's improving financial health & shareholder value.
2. Significant increase in net worth from March 2022 to March 2023 suggests robust growth & value creation.
3. To pursue growth of net worth, company should focus on generating sustainable profits, retaining earnings, & effectively managing its capital structure to support future growth initiatives.

Reserves & Surplus
1. Reserves & Surplus have shown general increasing trend, indicating company's ability to accumulate retained earnings over years.
2. Steady growth in reserves & surplus provides cushion for company to weather economic downturns & invest in future opportunities.
3. To pursue accumulation of reserves & surplus, company should prioritize prudent financial management, allocate profits efficiently, & avoid excessive dividend pay-outs to shareholders.

Total Borrowing
1. Borrowing has fluctuated over years, with decrease from March 2022 to Sep 2023.
2. Recent decrease in total borrowing suggests reduction in company's reliance on debt financing, which can improve its financial flexibility & reduce interest expenses.
3. To pursue sustainable borrowing strategy, company should continue monitoring its debt levels, prioritize debt repayment when feasible, & explore alternative financing options to meet its capital needs while minimizing financial risks.

Conclusion

Upcoming IPO’s finance analysis highlights company's overall positive financial performance & growth trajectory. To sustain & enhance this momentum, company should focus on prudent financial management practices, including optimizing revenue generation, controlling expenses, improving profitability, strengthening its balance sheet, & managing debt effectively. Additionally, company should adapt its strategies based on market conditions & continuously strive for operational excellence & innovation.

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