GM Polyplast Limited, started in 2003 and based in Mumbai - Maharashtra, is engaged in the business of manufacturing of H.I.P.S, A.B.S & P.E.T sheets, along with sheets company also manufactures the raw material used to manufacture the sheets called as granules. The company has been steadily diversifying as well as adding new products to its portfolio, besides adding additional infrastructure for increasing its manufacturing capability for its existing products. The product range includes Acrylonitrile Butadiene Styrene (ABS) Plastic Sheets, High ImpactPolystyrene (HIPS) Sheets, PET (Polyethylene Terephthalate) Sheets / Rolls, Amorphous PolyethyleneTerephthalate (A-PET) Sheet, Recycled Polyethylene Terephthalate (R-PET) Sheet, HDPE (High DensityPolyethylene) Sheets / Rolls, PP (Polypoplyne) Sheets / Rolls, Electrostatic discharge materials (ESD materials). Company's manufacturing unit is located at Plot No. 15, 16 & 17, Survey. No 217, Dadra & Nagar Haveli - 396230 having a total area of approximately 50,000 sq. ft. as on date of filing of prospectus. Current manufacturing capacity is 10,000 metric tonnes and actual capacity utilization for FY20 was around 58%. The manufacturing process starts with manufacturing and procurement of granules and then the manufacturing process and packing of the final products is been carried on. They primarily sell the products through distributors and retailer. They provide the product samples along with catalogue to distributors for reaching out to the wholesale and retail shops in domestic market. The distribution channel currently covers states of Maharashtra, Gujarat, Kerala, Tamil Nadu, West Bengal, Dadra & Nagar Haveli, Puducherry, Uttar Pradesh, Delhi, Madhya Pradesh, Haryana, Telangana, Karnataka, Uttar Pradesh, Goa, Karnataka, Chhattisgarh, and also, they supply to other countries such as UAE, Israel, Jordan, Hong Kong. On the financial performance front, for the last three fiscals, GM Polyplast has reported turnover/net profits (loss) of Rs. 55.51 cr. / Rs. 0.92 cr. (FY18), Rs. 68.35 cr. / Rs. 1.38 cr. (FY19) and Rs. 63.43 cr. / Rs. 2.32 cr. (FY20). So company has shown good results, specially super earnings of FY20. For the last three fiscals, company has posted average EPS of Rs. 11.31 and an average RoNW of 26.28%. The issue is priced at a P/BV of 2.33 based on its NAVs of Rs. 68 post issue. As per FY20 earnings issue is priced at P/E of 13. So as per FY20 earnings issue looks fairly priced. Comparison between listed peers are shown in above table, but they can't be compared On BRLM's front for Gretex Corporate Services Private Limited, this is the 11th IPO in last three fiscals. Out of last 10 listing, 2 opened below issue price and the rest with premiums ranging from 0% to 5% on the day of listings. As of now from last 10 IPOs, three are trading below issue price, and remaining above issue price. ( As on 29.09.2020 ) Company has shown good results and issue is priced at P/E of around 13 as per FY20 earnings, which is reasonably priced in current scenario. Also company doesn't have any unique products to offer and this business segment is very competitive. Performance of BRLM is average. So we give NEUTRAL rating to this SME IPO.
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