Yasons Chemex Care Limited

As per financial performance, Yasons Chemex Care Limited has posted total income/net profits of Rs 19.61 Cr / Rs 1.16 Cr (FY20), Rs 18.04 Cr / Rs 1.25 Cr (FY21), Rs 26.17 Cr / Rs 1.95 Cr (FY22) and Rs 41 Cr / Rs 3.43 Cr (FY23), So company has shown good results. Company has posted an average EPS of Rs 1.82/- and average RoNW of 13.41% for last three fiscals. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 39.52 and as per FY23 earnings P/E is 22.50. As per RHP, comparison between listed peers are shown in above table. On BRLM's front, Fedex Securities Private Limited is associated with this SME IPO and handled 15 SME IPOs in last 4 years. From last 10 IPOs, one opened below issue price and remaining opened above issue price on the listing day. As of now from last 10 IPOs, 3 are trading below issue price and remaining are trading above issue price. ( As on 21.07.23 ) As per financials, Yasons Chemex Care Limited has shown average results, RoNW is 16.65% and P/E is respectively 39.52 and 22.50 as per FY22 and FY23 earnings, which looks fully priced. Also issue expenses are very high. Company is in business of manufacturing dyes and pigment paste & FMCG products, which is a highly fragmented and competitive. Performance of BRLM is good. Also promoter company is already listed and financial performance is average. So we are giving NEUTRAL rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1   Yash Chemex Limited