Kross Limited

As per financial performance, Kross Limited has posted total income / net profits of Rs 297.88 Cr / Rs 12.17 Cr (FY22), Rs 489.36 Cr / 30.93 Cr (FY23) and Rs 621.46 Cr / Rs 44.88 Cr (FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 6.43 and average RoNW of 28.18% for last three fiscals. Issue is priced at a P/BV of 8.84 as per NAV of Rs 27.14/- as on 31.03.24. If we attribute latest earnings of FY22, FY23, and FY24, then asking price is at a P/E of around 127, 50.05, and 34.50 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, one lead manager is associated with this IPO, and have handled around 14 IPOs in last three fiscals. Equirus Capital Private Limited: This is 15th IPO from this BRLM. From last 10 IPOs, two opened below issue price and remaining opened above issue price or at par on the day of listing. As of now, from last 10 IPOs, three are trading below issue price and remaining are trading above issue price. (As on 04.09.24) As per financials, Kross Limited has shown good growth, RoNW is 30.57% and P/E is 127, 50.05, and 34.50 respectively as per FY22, FY23, and FY24 earnings. So, issue looks fully priced. Company is in business of manufacturing and supply of trailer axle and suspension assembly and a wide range of forged and precision machined high performance safety critical parts for medium and heavy commercial vehicles ('M&HCV') and farm equipment segments, which is a very fragmented and competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Sudhir Rai
• 2 Anita Rai
• 3 Sumeet Rai
• 4 Kunal Rai