The IPO of Carraro India and Senores Pharmaceuticals will close on December 23. Senores Pharmaceuticals was fetching a premium of 55% in the grey market while the stocks of Carraro India were neither attracting a premium nor a discount. Both the IPOs opened on December 20. If you’re perplexed which one to bet on? Here are some points to keep in mind before moving ahead:
Carraro India IPO Financials
The company reported a profit after tax of Rs 62.6 crore in FY24, a growth of 29% on year, compared to Rs 48.5 crore posted in FY23. The company’s net profit was Rs 22.4 crore in FY22. Its revenue from operation came in at Rs 1,789 crore, an increase of 4.4% on year in FY24, against Rs 1,713 crore in FY23. In FY22, the company’s net profit stood at Rs 1,497.5 crore. “Overall, Carraro India Limited’s IPO valuation appears favourable, given its strong financial performance, solid market position, and positive industry trends. The company’s ability to maintain high growth rates, innovate, and adapt to changing market conditions positions it well for future success,” said Bajaj Broking in an IPO note.
Carraro India IPO review
“At the upper price band, the company is valuing at a P/E of 45.83x, with an EV/EBITDA of 31.6x and a market cap of Rs 4,002.3 crore post-issue of equity shares and a return on net worth of 16.92%. We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO,” said Anand Rathi Research in an IPO note.
“The company’s focus on research and development has led to the introduction of advanced products that cater to the evolving needs of the market. This innovative edge is a significant factor in its valuation, as it ensures the company’s ability to stay ahead of competitors and meet market demands effectively. Investors should consider these factors, along with the broader economic environment and market conditions, to make informed investment decisions,” said Bajaj Broking in an IPO note.
Carraro India IPO details
The IPO closes today December 24. The IPO opened on December 20 to raise Rs 1,250 crore. The issue is entirely an offer for sale of 1.78 crore shares of promoters and other selling shareholders. The IPO price band is fixed between Rs 668 to Rs 704 per equity share.
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