Aritas Vinyl Limited, is engaged in manufacturing of technical textile, such as 'Artificial leather' also known as PU Synthetic leather and PVC-coated leather, using the latest technology known as Transfer Coating Technology. Company is selling its products to distributors, wholesaler and manufacturers, and also exporting to other country like Greece, Oman, UAE, Sri Lanka, USA and also to SEZ. Synthetic Leather is widely replacing traditional leather. Synthetic Leather is economical, durable, requires low maintenance and easy fabric to work with. Their products come in variety of colour, texture and patterns which find application in a wide range of products in different industry such as seat covers, door covers, dashboards, shoe uppers, shoe lining and insoles, sandals, furnishing and Upholstery, purses, bags and briefcases, diary covers and stationery items, garments, belts, wallets etc. Company's manufacturing facility is situated at Survey No 1134, Village Kubadthal, Taluka Daskroi, Ahmedabad – 382430 admeasuring approximately 6,067 square meters, with an installed production capacity of around 7.8 million meters per year. As per financial performance, Aritas Vinyl Limited has posted total income / net profits of Rs 51.42 / 0.99 Cr (FY23), Rs 69.24 / Rs 1.66 Cr (FY24), Rs 98.01 Cr / 4.13 Cr (FY25) and Rs 40.58 Cr / 2.42 Cr (upto 31.08.25 FY26). So as per previous financials data, company has shown good growth. But inventory level is around 45% FY25 total sales and trade receivables are around 27% of FY25 total sales that raises concerns. Company has an average EPS of Rs 2.59 and average RoNW of 24.64% for last three fiscals. Issue is priced at a P/BV of 2.62 as per NAV of Rs 17.95/- as on 31.08.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 55.58, 22.39 and 15.93 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Interactive Financial Services Limited is associated with this IPOs, and has handled 28 IPOs in last three fiscal years. From last 10 IPOs, five opened below issue price and remaining all above issue price or at par, on the day of listing. As of now, from last 10 IPOs, seven are trading below issue price and remaining all are trading above issue price or at par. (as on 13.01.26 ) As per financials, Aritas Vinyl Limited has shown good growth, RoNW is 20.36% and P/E is 55.58, 22.39 and 15.93 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced, and higher inventory levels and trade receivables in FY25 raises doubts. Company is engaged in manufacturing of technical textile, such as 'Artificial leather', which is very competitive business segment. Performance of BRLM is poor post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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