Global Pet Industries Limited

As per financial performance, Global Pet Industries Limited has posted total income/net profits of Rs 20.02 Cr / Rs 0.95 Cr (FY20), Rs 22.86 Cr / Rs 1.42 Cr (FY21), Rs 28 Cr / Rs 1.16 Cr (FY22) and Rs 23.06 Cr / Rs 1.56 Cr (9M FY23), So company has shown average results. Company has posted an average EPS of Rs 1.71/- and average RoNW of 19.84% for last three fiscals. Issue is priced at a P/BV of 2.25 as per NAV of Rs 21.8/- post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 41.36 and as per annualised FY23 earnings P/E is 23.03. As per RHP, there are no listed peers. On BRLM's front, Shreni Shares Limited is associated with this SME IPO and handled 16 SME IPOs in last 3 years. From last 10 SME IPOs, 1 opened below issue price and remaining opened above issue price on the listing day. As of now from last 10 IPOs, 1 are trading below issue price and remaining are trading above issue price. ( As on 22.06.23 ) As per financials, Global Pet Industries Limited has shown average results, RoNW is 16.46% and P/E is respectively 41.36 and 23.03 as per FY22 and annualised FY23 earnings, which looks aggressively priced. Company is in business of PET machines and parts globally, as per them, they are only manufacturer. Performance of BRLM is good. So we are giving NEUTRAL rating to this SME IPO, readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Bipin Nanubhai Panchal