Agarwal Toughened Glass India Limited

As per financial performance, Agarwal Toughened Glass India Limited has posted total income / net profits of Rs 34.72 Cr / Rs 0.50 Cr (FY22), Rs 40.60 Cr / Rs 0.97 Cr (FY23), Rs 40.50 Cr / Rs 8.69 Cr (FY24) and Rs 23.50 Cr / Rs 4.54 Cr (H1 FY24). So as per previous financials data, company has shown average growth, but sudden increase in net-profit raises doubts. Company has posted an average EPS of Rs 4 and average RoNW of 32.13% for last three fiscals. Issue is priced at a P/BV of 6.15 as per NAV of Rs 17.56/- as on 30.09.24. 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 197, 21.98 and 21.03 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Cumulative Capital Private Limited is associated with this SME IPO and handled one SME IPO in last 3 years. From last one IPO, all opened above issue price or at par on the day of listing. As of now from last one IPO, all are trading above issue price or at par as on today. ( As on 26.11.24 ) As per financials, Agarwal Toughened Glass India Limited has shown good growth, RoNW is 53.3% and P/E is respectively 197, 21.98 and 21.03 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced, but sudden rise in net-profit raises doubts. Company is in business of manufacturing of toughened glass. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Anita Agarwal
• 2 Mahesh Kumar Agarwal
• 3 Uma Shankar Agarwal
• 4 Sharda Agarwal