ARC Insulation & Insulators Limited incorporated on 2008, specializes in the manufacturing and supply of Glass Fiber Reinforced Polymers ('GFRP') / Fiber Reinforced Polymers Products ('FRP') composite/constituency products which provides corrosion-resistant, tensile strength and insulating Glass Fiber Reinforced Polymer (GFRP) solutions which can be used as a substitute for steel bars/rebars. They produce dent-resistant, low thermal expansion, corrosion resistant, and insulating GFRP. The offerings include GFRP Rebars, GFRP Granting Walkways, GFRP Pipelines, GFRP Tubes, GFRP Fencing for Transformers, GFRP Cable Trays, and other related products designed for industrial, energy and marine's sectors construction and industrial applications. In addition to the core business. Under the brand name 'ARC', they supply the products for application in diverse industries including Infrastructure, Power, Cooling Tower, Chemical, Composite, Electrical Substation, Mining and others. Company has one manufacturing plant which is located at Parganas South (West Bengal). They have a storage facility at the Manufacturing Facility for the purposes of holding inventories of raw material as well as finished products which ensures stability of operations. The basic raw material includes glass fibers and resins and they procure the raw materials based on market availability, pricing and quality through two main channels (i) domestic suppliers (ii) international suppliers from China, Thailand etc. The cost of materials consumed (including purchase of Raw materials and changes in inventory) by them in the operations accounted for 48.47%, 51.68%, and 65.42% of the revenue from operations for the financial year ended March 31, 2025, March 31, 2024, and 2023, respectively. As per financial performance, ARC Insulation & Insulators Limited has posted total income / net profits of Rs 24.48 Cr / 2.64 Cr (FY23), Rs 28.83 Cr / Rs 6.10 Cr (FY24) and Rs 33.15 Cr / 8.56 Cr (FY25). So as per previous financials data, company has shown steady results, but trade receivables is around 36% of FY25 total sales. Company has an average EPS of Rs 9.68 and average RoNW of 53.12% for last three fiscals. Issue is priced at a P/BV of 3.59 as per NAV of Rs 34.78/- as on post issue. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 48.79, 21.09 and 15.03 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Gretex Corporate Services Limited is associated with this SME IPO, and has handled 20 (Mainboard - 1 & SME - 19) IPOs in last three fiscal years. ( As on 18.08.25 ) As per financials, ARC Insulation & Insulators Limited has shown steady results, RoNW is 45.47% and P/E is 48.79, 21.09 and 15.03 respectively as per FY23, FY24 and FY25 earnings. So issue looks fully priced, but trade receivables are higher for FY25. Company is in the manufacturing and supply of Glass Fiber Reinforced Polymers ('GFRP') / Fiber Reinforced Polymers Products ('FRP') composite/constituency products, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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