Essen Speciality Films Limited

As per financial performance, Essen Speciality Films Limited has posted total income/net profits of Rs 96.81 Cr / Rs 9.14 Cr (FY21), Rs 118.57 Cr / Rs 5.17 Cr (FY22) and Rs 120.48 Cr / Rs 13.37 Cr (FY23), so company has shown average results. Company has posted an average EPS of Rs 6.21/- and average RoNW of 12.46% for last three fiscals. Issue is priced at a P/BV of 2.0 as per NAV of Rs 53.51/- as on 31.03.23. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 42.85 and as per FY23 earnings P/E is 16.56. As per RHP, comparison between listed peers are shown in above table. On BRLM's front, GYR Capital Advisors Private Limited is associated with this SME IPO and handled 13 SME IPOs in last 2 years. GYR Capital Advisors Private Limited : This is 14th IPO from this BRLM. From last 10 IPOs, all opened above issue price or at par on the day of listing. As of now, from last 10 IPOs, 4 are trading below issue price and remaining are trading above issue price. ( As on 17.06.23 ) As Per financials, Essen Speciality Films Limited has shown average results, RoNW is 15.62% and P/E is respectively 42.85 and 16.56 as per FY22 and FY23 earnings, which looks fully priced. Investors should keep watch on company profit margin as it has shown volatility. Company is in manufacturing business of specialized plastic products, which is highly competitive and fragmented. Performance of BRLM is good. So we are giving SUBSCRIBE rating to this SME IPO, readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Pallav Kishorbhai Doshi
• 2 Khushboo Chandrakant Doshi
• 3 Karishma Rajesh Doshi