Bai Kakaji Polymers Limited is primarily engaged in the business of manufacturing of PET preforms, Plastic caps and closures. The product portfolio include specialized closures such as Alaska closures (Commonly used in packaged drinking water), Carbonated Soft Drinks (CSD) cap (1881 neck finish), and wide range of PET preforms designed for different bottling needs. The products find diverse applications across various industries including packaged drinking water, carbonated beverages, juices and dairy products. Company started the business in 2013 with a single machine for manufacturing of plastic closures. Over the years, they expanded the operations by adding more machines and increasing the production capacity. Today, they use modern machines such as SACMI Continuous Compression Molding, ASB Preform Molding and HUSKY Pet Injection Molding machines from globally renowned OEMs to make closures and PET preforms. During the six months ended September 30, 2025, the sales were primarily concentrated in Maharashtra, Karnataka, Gujarat, Uttar Pradesh, Kerala, and Andhra Pradesh together contributing 92.94% of total revenue and highlighting the strong presence in western and southern India. Company also offers shrink and adhesive films to support the existing customers with a complete packaging solution. These films are in high demand, especially in industries that need strong and reliable packaging. Shrink film, made from LDPE (LowDensity Polyethylene), is mostly used for wrapping products together like bottles of water, soft drinks, or energy drinks. For the six months period ended September 30, 2025, the revenue from sale of products stood at Rs. 16,094.73 lakhs of which revenue from Pet preforms, Plastic closures, Shrink film and other products contributed 65.28%, 26.27%, 7.27% and 1.17% respectively. Company has four manufacturing units in Latur, Maharashtra, and spread over 33,000 square meters including the recently acquired of M/s Bai Kakaji industries manufacturing unit. These units are equipped with modern machines, a laboratory, and testing equipment such as SST Secure Seal Tester (analogue & tester), Bridge strength tester, Vernier Calliper, Digital Torque and Perpendicular tester to make sure the products meet quality standards. They are certified with ISO 9001:2015 by Euro UK Accreditation Licensing Services, Austria. As per financial performance, Bai Kakaji Polymers Limited has posted total income / net profits of Rs 275.09 / 4.17 Cr (FY23), Rs 296.41 / Rs 9.38 Cr (FY24), Rs 332.12 Cr / 18.36 Cr (FY25) and Rs 168.56 Cr / 12.81 Cr (upto Q2 FY26). So as per previous financials data, company has shown steady growth, but sudden rise in net-profit just before IPO raises doubts. Company has an average EPS of Rs 8.26 and average RoNW of 28.61% for last three fiscals. Issue is priced at a P/BV of 4.40 as per NAV of Rs 42.26/- as on 30.09.25. 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 42.42, 21.67 and 15.54 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Hem Securities Limited is associated with this IPOs, and has handled 59 IPOs in last two fiscal years. From last 10 IPOs, two opend below issue price remaining all above issue price or at par, on the day of listing. As of now, from last 10 IPOs, six are trading below issue price and remaining all are trading above issue price or at par. (19.12.25 ) As per financials, Bai Kakaji Polymers Limited has shown steady growth, RoNW is 34.18% and P/E is 42.42, 21.67 and 15.54 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced, but sudden rise in net-profit just before IPO raises doubts. Company is engaged in the business of manufacturing of PET preforms, Plastic caps and closures, which is highly competitive business segment. Performance of BRLM is poor post listing. 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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