Indobell Insulation Limited

As per financial performance, Indobell Insulation Limited has posted total income / net profits of Rs 9.77 Cr / Rs 0.15 Cr (FY22), Rs 21.05 Cr / Rs 0.90 Cr (FY23), Rs 17.99 Cr / Rs 1.03 Cr (FY24) and Rs 5.56 Cr / Rs 0.42 Cr (H1 FY25). So as per previous financials data, company has shown zig-zag results and trade receivables is around 36% of FY24 total income. Company has posted an average EPS of Rs 2.06 and average RoNW of 16.11% for last three fiscals. Issue is priced at a P/BV of 1.79 as per NAV of Rs 25.77/- as on post issue. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 32.20, 28.06 and 34.18 respectively, which looks aggressively priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Finshore Management Services Limited is associated with this SME IPO and this is 29th IPO from the lead manager in last 4 years. From last 10 IPOs, one opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 IPOs, one is trading below issue price and remaining are trading above issue price or at par as on today. ( As on 03.01.25 ) As per financials, Indobell Insulation Limited has shown zig-zag results, RoNW is 18.2% and P/E is respectively 32.20, 28.06 and 34.18 as per FY23, FY24 and annualized FY25 earnings. So, issue looks aggressively priced, and trade receivables is around 36% of FY24 total income. Company is manufacturer and contractor of insulation products like nodulated / granulated wool (mineral and ceramic fibre nodules) and prefabrication thermal insulation jackets, which is highly competitive business segment. Performance of BRLM post listing 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 Vijay Burman
• 2 Man Mohan Burman
• 3 Megha Burman
• 4 Raksha Burman