Gabriel Pet Straps Limited is engaged in the manufacturing and selling of Pet Straps under the brand name of 'Gabriel' widely used in packaging of heavy materials. They produce Pet Strap from 9mm to 32mm width and thickness ranging from 0.70mm to 1.30mm. The product, pet straps is manufactured in appropriate composition of virgin content raw material i.e., hot washed pet bottle flakes and non-virgin content raw material i.e. used pet straps grinding. They aspire to keep improving the products, backed with innovative new technologies to provide a great experience to the customers. They believe the products enables to capitalize on growth opportunities and increasing demand of the industry. The products are sold both, domestically. They have PAN India presence with the distributors network in 10 states for the domestic market (based on sales made for the period ended on October 15, 2023 and August 02, 2023 and for the financial year ended March 31, 2023, 2022 and 2021). They offer customised bulk packaging solutions to different industries such as Cotton Bales, Fiber, Packaging, Paper, Waste Cloth etc. Over the years they have developed expertise and upgraded the technology by adding several automatic machineries and equipment to the plant, which has helped to boost the production capacity and the quality of the products. The Company believes in the phrase 'Waste to Best Process.' They manufacture on extrusion lines using technology equipped with optimum quality control and testing machinery, ensuring the standard of quality. The pet straps are in different size, colour along with the additional option of printing directly on the Straps. The Company maintains a base of reliable material suppliers who consistently provide materials of appropriate dimensions as per the requirements. The raw materials procured from the suppliers are assembled and fabricated according to the manufacturing requirements of the products. After the raw materials is fabricated, the product is then processed for finished goods. The manufacturing facilities are well equipped with the required facilities including machinery, other handling equipment’s to facilitate smooth manufacturing process and easy logistics. They endeavour to maintain safety in the premises by adhering to key safety norms, established through the internal safety protocols. As per financial performance, Gabriel Pet Straps Limited has posted total income / net profits of Rs 0.08 Cr / Rs 0.00 Cr (FY21), Rs 9.69 Cr / Rs 0.04 Cr (FY22), Rs 15.00 Cr / Rs 0.52 Cr (FY23) and Rs 9.31 Cr / Rs 8.80 Cr (upto 15.10.23 FY24). So as per previous financials data, company has shown growth. Company has posted an average EPS of Rs 7.07 and average RoNW of 9.75% for last three fiscals. Issue is priced at a P/BV of 3.01 as per NAV of 33.54 as on Post issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 722.52, 51.41 and 47.32 respectively, which looks aggressively priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Shreni Shares Limited is associated with this SME IPO and handled 26 SME IPOs in last 3 year. From last 10 IPOs, all are opened above issue price on the day of listing. As of now from last 10 IPOs, all are trading above issue price. ( As on 25.01.24 ) As per financials, Gabriel Pet Straps Limited has shown average results, RoNW is 20.83% and P/E is respectively 722.52, 51.41 and 47.32 as per FY22, FY23 and annualised FY24 earnings. So, issue looks aggressively priced. Company is in business of the manufacturing and selling of Pet Straps, which is highly competitive and fragmented segment. Performance of BRLM is good. 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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