Sundrex Oil Company Limited is a manufacturer and wholesaler of lubricants, greases, and a wide range of industrial products, serving both B2B and B2C markets across India. The company's revenue profile is predominantly concentrated in the Business-to-Business (B2B) segment, which accounts for approximately 99% of the total revenue whereas the remaining 1% of revenue is generated from the Business-to-Customer (B2C) segment. The portfolio includes the production of industrial lubricant, automotive lubricant, and specialty products (co). They are manufacturer of high-performance lubricants, greases, metalworking fluids, bituminous products, IS: 335 Certified Transformer Oils, and other specialized formulations. The lubricant business focuses primarily on the production and sale of various industrial lubricants including hydraulic oils, transmission oils, and gear oils, which are essential for various industrial machinery applications. In addition to manufacturing products under their own brand, they offer contract manufacturing services, including toll blending and contract packaging. They also provide private labeling services, enabling companies to market and sell premium-quality products under their own brand name. The company operates an in-house manufacturing plant at Howrah, West Bengal with a production capacity of 100 KL per day for white oil, 60 KL per day for lubricants, and 9 MT per day for greases on a double-shift schedule. This is supported by a fully-equipped laboratory featuring 50 instruments to test various parameters for quality control. Currently, the plant is operating at approximately 45% of its capacity. As per financial performance, Sundrex Oil Company Limited has posted total income / net profits of Rs 27.79 / 0.39 Cr (FY23), Rs 49.19 / Rs 2.56 Cr (FY24), Rs 69.11 Cr / 5.44 Cr (FY25) and Rs 19.18 Cr / 1.94 Cr (upto Q1 FY26). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Company has an average EPS of Rs 6.51 and average RoNW of 44.20% for last three fiscals. Issue is priced at a P/BV of 2.33 as per NAV of Rs 36.94/- as on Post Issue. 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 44.91, 21.16 and 14.83 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Affinity Global Capital Market Private Limited is associated with this SME IPOs, and has handled 7 IPOs in last three fiscal years. From last 7 IPOs, one opened below issue price and remaining all above issue price or at par, on the day of listing. As of now, from last 7 IPOs, four are trading below issue price and remaining all are trading above issue price or at par. (as on 18.12.25 ) As per financials, Sundrex Oil Company Limited has shown good growth, RoNW is 35.63% and P/E is 44.91, 21.16 and 14.83 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced, but sudden rise in net-profit raises doubts and financial data is provided only upto Q1 FY26 which is surprising. Company is a manufacturer and wholesaler of lubricants, greases, and a wide range of industrial products, which is highly competitive business segment. Performance of BRLM is average post listing. 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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