Patel Chem Specialities Limited operates in the field of specialty chemicals, particularly focusing on the production of cellulose-based excipients. They manufacture a diverse range of products that are critical to various industries, including pharmaceuticals, food & beverages, cosmetics, and numerous industrial applications. These chemicals are fundamental in the formulation of essential products such as tablets, food additives, personal care items, and industrial formulations. The products play vital roles as binders, disintegrants, thickeners, stabilizers, and gelling agents, each serving a specialized function across multiple sectors. Since inception, Company manufactures Carboxymethyl Cellulose Sodium (Sodium CMC), Microcrystalline Cellulose (MCC), Carboxymethyl Cellulose Calcium (CMC Calcium), Croscarmellose Sodium (CCS), Sodium Starch Glycollate (SSG), and Sodium Monochloro Acetate (SMCA). They are exporting the products to over 15 countries, including the USA, Germany, UK, Japan, China, Australia, and many more. Company offers a diverse range of cellulose-based chemicals. Sodium CMC, a versatile product, is used as a thickener, binder, and gelling agent in pharmaceuticals, food & beverages, cosmetics, and industrial applications such as oil drilling, under the brand 'Rheollose®.' Microcrystalline Cellulose (MCC) is valued in pharmaceuticals and food & beverages as a bulking agent, texturizer, and binder, with products branded as 'Hindcel®.' Sodium Starch Glycollate (SSG) serves as a disintegrant in tablets, available in corn ('BlowTab® C') and potato-based ('BlowTab® P') variants. Croscarmellose Sodium and Calcium CMC, powerful super disintegrants, are marketed as 'Disolwell' and 'Swellcal', respectively. Additionally, Sodium Monochloro Acetate (SMCA) is a key raw material for the products and has applications in drug production and nutritional products. Company's manufacturing facilities are in Vatva, Ahmedabad, and Talod, Himmatnagar. These facilities are equipped with machinery and are designed to produce a wide variety of chemicals in bulk. Capacity utilization of Talod manufacturing unit is 44.09%, 79.51% and 89.26% for FY23, FY24 and FY25 respectively and for Vatva unit is 78.01%, 87.59% and 99.05% for FY23, FY24 and FY25 respectively. The total installed capacity from the existing Vatva facility and Talod facility combine is 3,720 MTPA and with the ongoing capex, they intend to add 6,012 MTPA which make the total capacity of the Company as 9,732 MTPA. As on March 31, 2025, they catered to more than 350 customers in different industrial segments including dealers / agents worldwide. As per financial performance, Patel Chem Specialities Limited has posted total income / net profits of Rs 69.75 Cr / Rs 2.88 Cr (FY23), Rs 82.71 Cr / Rs 7.65 Cr (FY24) and Rs 105.55 Cr / Rs 10.56 Cr (FY25). So as per previous financials data, company has shown good results. Company has posted an average EPS of Rs 4.83 and average RoNW of 32.05% for last three fiscals. Issue is priced at a P/BV of 4.11 as per NAV of Rs 20.44/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on fully diluted equity post issue, then asking price is at a P/E of around 72.38, 27.29 and 19.77 respectively, which looks fully priced. As per RHP, comparision between listed peers are shown in above table. On BRLM's front, Cumulative Capital Private Limited and Unistone Capital Private Limited are associated with this SME IPO and handled 14 SME IPOs & 9 Mainboard IPOs in last 3 years. From last 10 IPOs, seven opened above issue price or at par and remaining below issue price on the day of listing. As of now from last 10 IPOs, six is trading below issue price and remaining all above issue price as on today. ( As on 19.07.25 ) As per financials, Patel Chem Specialities Limited has shown good result, RoNW is 32.05% and P/E is respectively 72.38, 27.29 and 19.77 as per FY23, FY24 and FY25 earnings. So, issue looks fully priced as per recent earnings. Company operates in the field of specialty chemicals, particularly focusing on the production of cellulose-based excipients, which is highly competitive business segment. Performance of BRLM is average. 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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