Neochem Bio Solutions Limited is a specialty performance chemical company with a legacy of over four decades, engaged in the business of manufacturing specialty performance chemicals with a diverse portfolio of over 350 customized formulations across four primary product segments viz.,(i) Polymers, (ii) Surfactants, (iii) Silicones, and (iv) Esters & bio based sustainable solutions. The products are essential and used in industries such as textile & garment washing,home & personal care (HPC), institutional and industrial cleaners, water treatment, paints and coatings, paper andpulp, construction, rubber and dyes and pigments. The Company is accredited with recognized process certifications such as ISO 9001:2015, ISO 14001 and ISO 45001. The product certifications include ZDHC Level3 and GOTS 7.0. Company offers a comprehensive range of textile and garment washing auxiliaries such as pre-treatment, dyeing, finishing, printing and coating applications across all fabric and garment substrates compatible with various processing machines. They manufacture and supply a diverse range of specialty performance chemicals such as dispersant polymers, anti-foams, specialty surfactants, silicone emulsions, and rheological modifiers for the home and personal care industries. The water treatment range includes anti-scalant formulations based on high and low molecular weight polymers, along with dispersants, anti-foams, de-colorants and flocculants. For the paint and coating industry, they offer acrylic dispersants, wax emulsion-based additives, anti-foams, and acrylic emulsions. Further, the institutional and industrial cleaning range includes room care, laundry care, kitchen hygiene, and personal hygiene solutions tailored for commercial and industrial use. The manufacturing facility is located at Saket Industrial Estate, Village Moraiya, Ta. Sanand, Dist-Ahmedabad, which has an installed capacity of 22,000 metric ton per annum ('MTPA') with a total area of 6,763 square meters. This facility is partially automated and designed for production of small to medium batches with the capability to handle both liquid and powder-based chemistries. The facility is supported by warehousing capacity to store approximately 1,350MT of raw materials and finished goods at a time. Company sells the products directly to customers as well as through more than 50 pan India authorised distributors and the reselling agent, in the domestic markets and directly to customers across the international market. In the domestic market, they sold the products to 228, 227, 254 and 188 customers during six months period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. As per financial performance, Neochem Bio Solutions Limited has posted total income / net profits of Rs 48.79 / 1.07 Cr (FY23), Rs 62 / Rs 1.80 Cr (FY24), Rs 86.15 Cr / 7.75 Cr (FY25) and Rs 47.18 Cr / 5.48 Cr (upto 30.09.25 FY26). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Also value of trade receivables for FY25 is around 29% of total sales. Company has an average EPS of Rs 4.29 and average RoNW of 33.41% for last three fiscals. Issue is priced at a P/BV of 3.81 as per NAV of Rs 25.72/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 93.15, 21.65 and 15.30 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Vivro Financial Services Private Limited is associated with this SME IPO, and has handled 09 IPOs in last three fiscal years. From last nine IPOs, two opened below issue price and remaining all opened above issue price or at par, on the day of listing. As of now, from last nine IPOs, two are trading below issue price and remaining all are trading above issue price or at par. ( As on 27.11.25 ) As per financials, Neochem Bio Solutions Limited has shown good growth, RoNW is 48.82% and P/E is 93.15, 21.65 and 15.30 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced. Sudden rise in net-profit just before IPO and higher trade receivables value raises doubts. Company is engaged in the business of manufacturing specialty performance chemicals, which is competitive business 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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