The Company is manufacturer of high-quality corrugated boxes including printed, rolls, pads, sheets etc., offering customized packaging solutions to meet the specific requirements of its clients. The company specialises in manufacturing corrugated boxes and supplies to various sectors. Started in 2002, the company initially focused on development and planning, with manufacturing operations commencing in 2014. The company operates from its strategically located manufacturing units in Bari Brahmana, Jammu, which provides significant logistical advantages. Over the year, Company has expanded its reach and built a strong regional presence in Jammu, India while also establishing a marketing and distribution network across multiple states. Company operates in two units at Bari Brahmana, Jammu, with Unit 1 having a total allocated area of 43,360 Sq. Ft. and Unit 2 having an allocated area of 1,73,440 Sq. Ft. Currently, Unit 1 is utilizing approximately 12,000 Sq. Ft. and Unit 2 is utilizing approximately 55,000 Sq. Ft. of total area of respective units. Out of the total land area, approximately 15,000 Sq. Ft. in Unit 1 and around 75,000 Sq. Ft. in Unit 2 remain unutilized and shall be used for the construction and installation of new manufacturing machineries to accommodate both present and future expansion. The key customers include Cadila Pharmaceuticals Limited, UPL Sustainable Agri Solutions Limited, Coromandel International Limited, Anantjeet Nutriments LLP, Dhanuka Agritech Limited and Ultimate Flexipack Limited. As per financial performance, Phytochem Remedies (India) Limited has posted total income / net profits of Rs 20.82 / 0.81 Cr (FY23), Rs 32.89 / Rs 2.31 Cr (FY24), Rs 36.81 Cr / 4.47 Cr (FY25) and Rs 25.01 Cr / 3.75 Cr (upto Q2 FY26). So as per previous financials data, company has shown good growth. But trade receivables are around 25% of FY25 total sales and inventory level is around 37% of FY25 total sales, also sudden rise in net profit which are some concerns. Company has an average EPS of Rs 10.29 and average RoNW of 27.98% for last three fiscals. Issue is priced at a P/BV of 4.57 as per NAV of Rs 21.45/- 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 49.93, 25.78 and 15.37 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Mefcom Capital Markets Limited is associated with this SME IPOs, and has handled 1 IPOs in last three fiscal years. From last One IPO, that opened below issue price or at par, on the day of listing. As of now, from last one IPO, that is trading below issue price or at par. ( As on 15.12.25 ) As per financials, Phytochem Remedies (India) Limited has shown good growth, RoNW is 34.07% and P/E is 49.93, 25.78 and 15.37 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced when compared with peers. Also, sudden rise in net-profit, higher trade receivables and high level of inventory generates doubts. Company is engaged in the business of manufacturing packaging material like corrugated boxes including printed, rolls, pads, sheets etc., which is highly competitive business segment. BRLM is very new. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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