Pyramid Technoplast Limited is an industrial packaging company engaged in the business of manufacturing polymer based molded products (Polymer Drums) mainly used by chemical, agrochemical, speciality chemical and pharmaceutical companies for their packaging requirements. They are one of the leading manufacturers of rigid Intermediate Bulk Containers (IBC) in India manufacturing 1,000 litre capacity IBC. IBCs are industrial-grade containers engineered for the mass handling, transport, and storage of liquids, semi-solids, pastes, or solids. They also manufacture MS Drums made of mild steel (MS) used in the packaging and transport of chemicals, agrochemicals and speciality chemicals. Company uses blow molding technology to manufacture Polymer Drums and IBCs. Injection molding technology is used for manufacturing caps, closures, bungs, lids, handles, lugs, etc. for in-house use. The products are marketed and sold under the brand name 'Pyramid'. Company started commercial production in the year 1998 in Unit I. Presently, they have six (6) strategically situated manufacturing units out of which four (4) are in Bharuch, GIDC, Gujarat and two (2) are situated at Silvassa, UT of Dadra and Nagar Haveli. The seventh (7) manufacturing unit is under construction at the Bharuch, GIDC, Gujarat adjacent to the existing six units. The total installed capacity of the Polymer Drum manufacturing units is 20,612 MTPA. The total installed capacity of the IBC manufacturing unit is 12,820 MTPA and the total installed capacity of the MS Drums unit is 6,200 MTPA. Average capacity utilization of all units is above 70%. They have obtained UN certification for IBC and MS Drums to meet safety levels outlined by United Nations Recommendations on the Transport of Dangerous Goods, in order to transport them safely (by road, rail, sea and air). The manufacturing units are ISO 9001:2015/ ISO 14001:2015/ISO 45001:2018 certified by quality, environment, health and safety management systems for the manufacture of Polymer Drums, carboys, jerry cans, IBC & MS Drums and accessories connected thereto. Further, the MS Drums meet quality standards as per IS1783:2014 (Part 1 and 2) laid down by Bureau of Indian Standards. Company also has a fleet of 51 trucks which enables on time delivery of the products to the customers. These trucks are also used to internal transfer of raw materials and products used for captive consumption between the units thereby streamlining production schedules. As per financial performance, Pyramid Technoplast Limited has posted total income / net profits of Rs 316.18 Cr / Rs 16.99 Cr (FY21) and Rs 402.64 Cr / Rs 26.15 (FY22) and Rs 482.03 Cr / Rs 31.76 Cr (FY23). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 8.83 and average RoNW of 32.19% for last three fiscals. Issue is priced at a P/BV of 3.08 as per NAV of 53.98 post issue. If we attribute latest earnings of FY22 on fully diluted equity post issue, then asking price is at a P/E of around 23.35 and as per FY23 earnings P/E is around 19.23, which looks fully priced. As per RHP, peers comparison is shown in above table. On BRLM's front, two lead managers are associated with this IPO, and have handled around 123 IPOs in last three fiscals.PNB Investment Services Limited : This is 1st IPO from this BRLM. (As on 16.08.2023) First Overseas Capital Limited : This is 15th IPO from this BRLM. From last 10 IPOs, 1 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, 4 are trading below issue price and remaining are trading above issue price or at par. (As on 16.08.2023) As per financials, Pyramid Technoplast Limited has shown good growth, RoNW is 29.61% and P/E is respectively 23.35 and 19.23 as per FY22 and FY23 earnings, which looks fully priced. Company is in business of manufacturing polymer-based molded products (Polymer Drums), which is highly fragmented and competitive. We may see good growth in this sector as interest rate will go down. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO with limited listing gains. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment