Aeron Composite Limited

As per financial performance, Aeron Composite Limited has posted total income / net profits of Rs 79.06 Cr / Rs 2.55 Cr (FY21), Rs 109.93 Cr / Rs 3.62 Cr (FY22), Rs 181.99 Cr / Rs 6.61 Cr (FY23) and Rs 180.80 Cr / Rs 9.42 Cr (upto Feb FY24). So as per previous financials data, company has shown good growth, but company has not given complete FY24 financials which is very surprising. Company has posted an average EPS of Rs 4 and average RoNW of 24.31% for last three fiscals. Issue is priced at a P/BV of 4.5 as per NAV of 27.75 as on 29.02.24. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 58.75, 32.18 and 20.70 respectively, which looks fully priced. As per RHP, there is no listed peers. On BRLM's front, Beeline Hem Securities Limited is associated with this SME IPO and handled 49 SME IPOs in last 3 years. From last 10 IPOs, all opened above issue price or at par on the day of listing. As of now from last 10 IPOs, two are trading below issue price and remaining are trading above issue price as on today. ( As on 23.08.24 ) As per financials, Aeron Composite Limited has shown good growth, RoNW is 26.07% and P/E is respectively 58.75, 32.18 and 20.70 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced, but non-availability of complete FY24 years raises doubts. Company is engaged in the business of manufacturing and supplying of Fiber Glass Reinforce Polymer Products, which is highly fragmented and competitive business segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Dilipkumar Ratilal Patel
• 2 Chirag Chandulal Patel
• 3 Pankaj Shantilal Dadhaniya
• 4 Ravi Pankajkumar Patel
• 5 A. International Private Limited