Shree Tirupati Balajee Agro Trading Company Limited

As per financial performance, Shree Tirupati Balajee Agro Trading Company Limited has posted total income / net profits of Rs 453.79 Cr / Rs 13.66 Cr (FY22), Rs 478.14 Cr / 20.72 Cr (FY23) and Rs 552.82 Cr / Rs 36.07 Cr (FY24). So as per previous financials data, company has shown growth. Company has an average EPS of Rs 2.54 and average RoNW of 17% for last three fiscals. Issue is priced at a P/BV of 3.01 as per NAV of Rs 27.54/- as on 31.03.24. If we attribute latest earnings of FY22, FY23, and FY24, then asking price is at a P/E of around 49.57, 32.68, and 18.77 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, two lead managers are associated with this IPO, and have handled around 14 IPOs / SMEs in last three fiscals. PNB Investment Services Limited: This is 2nd IPO from this BRLM. From last one IPO, that opened above issue price or at par on the day of listing. As of now, from last one IPO,  that is trading above issue price. (As on 03.09.24) Unistone Capital Private Limited: This is 14th IPO from this BRLM. From last 10 IPOs / SMEs, all opened above issue price 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 03.09.24) As per financials, Shree Tirupati Balajee Agro Trading Company Limited has shown good growth, RoNW is 20.84% and P/E is 49.57, 32.68, and 18.77 respectively as per FY22, FY23, and FY24 earnings. So, issue looks fully priced. Company is in business of business of manufacturing and selling of Flexible Intermediate Bulk Containers (FIBCs) i.e large flexible bags and other industrial packaging products, which is a very 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 Binod Kumar Agarwal