Aureate Tradde Limited

Aureate Tradde Limited is engaged in the trading, distribution, and supply of industrial and technological materials across three key business verticals: (i) Polymers and Petrochemicals, (ii) Lithium-ion and Sodium-ion Cells, and (iii) Electric Vehicle (EV) Chargers. Its product portfolio features essential materials such as PVC and PET resins used for producing plastic goods, and critical components for the electric mobility infrastructure. Notably, the company is the sole and exclusive distributor of Sodium-ion Cells across PAN India for Jianghu Highstar Battery Manufacturing Co., Ltd. The company operates strictly on an "Inventory-based model", which involves purchasing and maintaining stock in advance to efficiently serve a wide spectrum of small, medium, and large enterprises. Aureate Tradde procures its materials from well-established international and domestic suppliers, storing them at rented warehouse facilities before distributing them in the Business-to-Business (B2B) and Business-to-Consumer (B2C) markets. Notably, the company is the sole and exclusive distributor of Sodium-ion Cells across PAN India for Jianghu Highstar Battery Manufacturing Co., Ltd. The company's target client base spans across multiple industries, predominantly encompassing manufacturers of finished plastic products (such as PVC flex and pipes), EV component manufacturers (two-wheelers and three-wheelers), and businesses rolling out E-mobility charging infrastructure. By maintaining stringent reconciliation protocols and quality assurance standards, the company successfully serves high-volume customers in major domestic regions like Gujarat, Maharashtra, and Delhi. Regarding manufacturing units and capacity utilization, the company is solely engaged in the business of trading and distribution rather than manufacturing. As a result, the parameters of plant and machinery, installed capacity, and capacity utilization are not applicable to Aureate Tradde Limited. The company relies entirely on a strong third-party logistics and warehousing network, primarily operating from leased facilities in Delhi, Gujarat, and Maharashtra. As per financial performance, Aureate Tradde Limited has posted total income / net profits of Rs 211.60 / 1.13 Cr (FY23), Rs 172.19 / Rs 1.45 Cr (FY24), Rs 176.62 Cr / 2.57 Cr (FY25) and Rs 102.79 Cr / 4.35 Cr (Upto Q3 FY26). So as per previous financials data, the revenue CAGR is negative at (8.65)%, but increase in net-profit is surprising. Operating cash flow is negative for past 3.5 years and also trade receivables increased to 40% in 9M FY26. Company has an average EPS of Rs 2.16 and average RoNW of 21.19% for last three fiscals. Issue is priced at a P/BV of 3.69 as per NAV of Rs 18.98/- as on 31.12.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 62.81, 35.31 and 15.64 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Corporate Makers Capital Limited is associated with this IPOs and has handled 7 IPOs in last three fiscal years. From last 7 IPOs, five opened below issue price and remaining all above issue price or at par, on the day of listing. As of now, from last 7 IPO, all are trading below price. (as on 26.05.26) As per financials, Aureate Tradde Limited has shown declining sales, RoNW is 21.88% and P/E is 62.81, 35.31 and 15.64 respectively as per FY24, FY25 and annualised FY26 earnings. So, issue looks aggressively priced, also higher trade receivables and negative cash flow raise doubts. The company is engaged in the trading, distribution, and supply of industrial and technological materials, which is highly competitive business segment. Performance of BRLM is poor. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Mrs. Kalash Kevin Shah 
• 2 Mr. Punit Devendrabhai Shah