Indian Emulsifier Limited was incorporated with the objective of Manufacturing and Supplying of Specialty Chemicals i.e., Esters, Amphoterics, Phosphate Esters, Imidazolines, Wax Emulsions, SMO & PIBSA Emulsifiers. The Company has its manufacturing plant at Plot No. E-10 MIDC, Lote Parshuram, Tal. Khed, Ratnagiri 415 722, Maharashtra, India since inception. The facility has a production capacity of 4,800 metric tons per annum as on March 31, 2023 and 3,600 MT per annum for the period ended December 31, 2023*, equipped with process control, innovative R&D centre, Quality Control and Application Laboratories. and its Registered office at Shop 206, Floor 2, Sumer Kendra, Shivram Seth, Amrutwar Road Near Doordarshan Kendra, Off Pandurang Budhwar Marg, Worli, Mumbai 400 018, Maharashtra, India. The Company was formed with a vision to become a pioneer specialty chemicals manufacturer. They are manufacturing the Specialty chemicals industry, with a focus on Esters, Phosphate Esters, Imidazolines, Succinimides, Sulfosuccinates, Specialty Emulsifiers and formulated products. The Company serve specialty chemicals to wide range of industries such as Mining, Textile, Cleaning Industry, PVC (Poly Vinyl Chloride)/ Rubber, Personal Care, Food and Other Industries. The manufacturing facility has a production capacity of 4,800 metric tons per annum the capacity has been increased from 2400 MT per annum to 4,800 MT per annum due to additional Reactors installed, equipped with process control, innovative R&D centre, Quality Control and Application Laboratories. Operations at the facility are managed by an able and motivated team of highly qualified technical personnel, having expertise in their individual fields. Multipurpose facility designed to have a high degree of flexibility to meet customer needs. Multiple high-pressure stainless-steel reactors equipped to deliver yields from 100 Kg to 8,000 kg per batch providing high level of flexibility. The facility can carry out reactions at temperatures ranging from 10 C to 250 C and pressure 5 kg to 8kg/cm, the reactors are equipped with condenser, vacuum arrangement and receiver and high speed stirred reactor. As per financial performance, Indian Emulsifier Limited has posted total income / net profits of Rs 0.00 Cr / Rs (0.037) Cr (FY21), Rs 17.68 Cr / Rs 0.04 Cr (FY22), Rs 41.18 Cr / Rs 3.89 Cr (FY23) and Rs 48.70 Cr / Rs 6.75 Cr (upto Q3 FY24). So as per previous financials data, company has shown good growth, but sudden increase in net profit, just before IPO generates doubts. Company has posted an average EPS of Rs 2.42 and average RoNW of 6.57% for last three fiscals. Issue is priced at a P/BV of 4.51 as per NAV of 29.26 as on 31.12.23. 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 3751.94, 41.43 and 17.93 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. This is first IPO from this Ekadrisht Capital Private Limited BRLM. As per financials, Indian Emulsifier Limited has shown good growth, RoNW is 32.34% and P/E is respectively 3751.94, 41.43 and 17.93 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced and sudden rise in net-profit is very surprising. Company is in business of manufacturing and supplying of Specialty Chemicals. This is first IPO from the BRLM. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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