Nukleus Office Solutions Limited

As per financial performance, Malpani Pipes And Fittings Limited has posted total income / net profits of Rs 34.94 Cr / Rs 0.89 Cr (FY22), Rs 82.57 Cr / Rs 2.08 Cr (FY23), Rs 141.16 Cr / Rs 7.40 Cr (FY24) and Rs 84.55 Cr / Rs 5.09 Cr (30.11.24 FY25). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 22.95 and average RoNW of 50.07% for last three fiscals. Issue is priced at a P/BV of 3.60 as per NAV of Rs 24.98/- as on 30.11.24. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 46.62, 13.11 and 12.70 respectively, which looks fairly priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Interactive Financial Services Limited is associated with this SME IPO and this is 22nd IPO from the lead manager in last four years. From last 11 IPOs (10 SMEs & 1 Main Board), three 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, six are trading below issue price and remaining are trading above issue price or at par as on today. ( As on 27.01.25 ) As per financials, Malpani Pipes And Fittings Limited has shown good growth, RoNW is 50.1% and P/E is respectively 46.62, 13.11 and 12.70 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fairly priced, but sudden rise in net-profit just before IPO raises concerns. Company manufactures a range of high-grade plastic pipes, which is highly competitive and fragmented business segment. Performance of BRLM post listing is poor. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Nipun Gupta
• 2 Puja Gupta