Purv Flexipack IPO Financial Analysis

Purv Flexipack IPO Financial Analysis
Purv Flexipack IPO Financial Analysis

by Tanushree Jaiswal Last Updated: Feb 21, 2024 - 05:23 pm 718 Views
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Purv Flexipack Limited established in 2005 specializes in distributing plastic products like BOPP and Polyester Films, Plastic Granules and more. With four modern warehouses and strict inventory management they offer diverse packaging solutions. Purv Flexipack is set to launch its IPO on 27 February 2024. Below is a summary of the company's business model, strengths, risks and financials to assist investors in making informed decisions.

Purv Flexipack IPO Overview

Established in 2005 Purv Flexipack Ltd distributes plastic products such as BOPP film, Polyester Films, CPP films, Plastic granules, Inks, Adhesives, Masterbatches, Ethyl Acetate and Titanium Dioxide. With 4 modern warehouses and effective inventory management systems the company ensures safe storage and efficient tracking of products to its clients like Clear Premium Water, Uflex Ltd, Vacmet India Ltd among others.

Purv Flexipack offers comprehensive flexible packaging solutions, emphasizing high quality products at competitive prices. Since 2017 it has diversified its services by becoming a del cred agent of IOCL for plastic granule supply in Kolkata & surrounding regions enhancing its product range and strategic partnerships.

Get more details about Purv Flexipack IPO in this article.

Purv Flexipack IPO Strengths

1. The company provides all solutions under one roof.

2. Tailoring rolls to fit different sizes as needed.

3.  Consistently delivering strong financial results.

4.  Experience management team

Purv Flexipack IPO Risk

1. The company relies heavily on its top 5 suppliers accounting for 76.32%, 80.74%, and 74.79% of total purchases for the fiscal years ending March 31 in 2023, 2022, and 2021 respectively.
2.  Its revenue relies on certain customers. If they're lost their financial health declines or if product demand decreases it could harm the company's business, finances and cash flow.
3.  The company had negative cash flow from operations, investments and financing activities in the past three years. This sustained negative cash flow could impact its growth and business.

Purv Flexipack IPO Details

Purv Flexipack IPO is scheduled from 27 to 29 February 2024. It has a face value of ₹10 per share and the IPO's price band is ₹70 - ₹71 per share.

Total IPO size (₹Cr) 40.21
Offer for sale (₹Cr) 0.00
Fresh issue (₹Cr) 40.21
Price band (₹) 70-71
Subscription dates 27 Feb 2024 to 29 Feb 2024

Financial Performance of Purv Flexipack IPO

Purv Flexipack Limited prior to its IPO demonstrated strong financial performance with increasing profits over the years. The Profit After Tax (PAT) stood at ₹567.5 lakhs as of 31 March 2021. 31 by March 2022 it grew to ₹626.73 lakhs and by 31 March 2023 it surged to ₹826.13 lakhs. This consistent growth indicates the company's positive momentum and attractiveness to potential investors.

Period 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets (₹ Crore ) 25,852.83 18,146.73 15,417.62
Revenue (₹ Crore ) 34,107.83 22,943.81 13,780.26
PAT (₹ Crore ) 826.13 626.73 567.5
Total Borrowing (₹ Crore ) 12,350.98 8,340.10 7,077.77

Purv Flexipack  IPO Key Ratios

Purv Flexipack's ROE shows how efficiently it's using shareholder funds to generate profits. In FY21 it was 9.62% dropped slightly to 9.23% in FY22 then rose to 10.84% in FY23. This suggests the company's improving ability to deliver returns to investors.

Particulars FY23 FY23 FY21
Sales Growth (%) 49.83% 67.15% -
PAT Margins (%) 2.48% 2.82% 4.27%
Return on Equity (%) 10.84% 9.23% 9.62%
Return on Assets (%) 3.20% 3.45% 3.68%
Asset Turnover Ratio (X) 1.29 1.23 0.86
Earnings per share (₹) 5.85 4.44 4.02

Purv Flexipack IPO Vs Peers

When comparing Purv Flexipack Limited to its competitor Sah Polymers, Purv Flexipack has a higher Earnings Per Share (EPS) of 5.85 compared to Sah Polymers' 2.1. This means that for each share owned Purv Flexipack generates more earnings for its shareholders than Sah Polymers does.

Promoters of Purv Flexipack IPO

1. Rajeev Goenka
2. Poonam Goenka
3. Purv Logistics Pvt Ltd

Poonam Goenka, Rajeev Goenka and Purv Logistics Pvt Ltd are the promoters of the company. They collectively own 92.17% of the company's shares after the IPO their ownership will decrease to 67.29%.

Final Words

This article takes a closer look into Purv Flexipack IPO scheduled for subscription from 27 February 2024. It suggests that potential investors thoroughly review the company's details, financials and subscription status before applying for the IPO
 

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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