Platinum Industries Limited IPO Summary

About the Company:

• Incorporated in August 2016, Platinum Industries Limited is a company that specializes in producing stabilizers. The company manufactures PVC stabilizers, CPVC additives and lubricants. 

• The company's products are used in PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, packaging materials, etc. 

• The manufacturing facility of the company is situated in Palghar, Maharashtra, and spreads across 21,000 sq. ft. of land.

Images of the products for better understanding: -

1. PVC

2. Lubricants

The table shows the different types of pvc stabilizers, cpvc additives, and lubricants.

• PVC stabilizers are classified as lead based and non-lead based. 

• CPVC additives are divided into CPVC add pack and CPVC Compound. 

• Lubricants include PE wax and lubpack.

Financials :-

Overall, the company's performance seems to have improved from 2021 to 2023 as reflected by increasing values in Revenue from Operations, Net Profit Margin and EBITDA . For instance, revenue from operations increased from ₹89.27 Crores in 2021 to ₹2,31.48 crores in 2023, and the net profit margin increased from 5.39% to 16.24%. EBITDA Margin is up from 8.47% in 2021 to 23.27% in 2023 However, some metrics like return on equity (ROE) and Return on Capital Employed (ROCE) have decreased over the same period.

Valuation:

• The company's P/E ratio is 18.15, which is lower than the industry average of 23.38 and The company's P/B ratio is 11.13, which is higher than the industry average of 9.88.

Peer Comparison:

Key Risks:

1. Dependence on a few customers - For the period ended September 2023, the top 5 customers generated ₹902.00 million in sales, which is 81.84% of the total sales. In comparison, the top 10 customers generated ₹994.09 million, which is 91.10% of the total sales.

2. Capacity Utilization - Under-utilization of manufacturing capacities and an inability to effectively utilize expanded manufacturing capacities could have an adverse effect on business, future prospects and future financial performance.

3. Raw Material Procurement - Company do not have long-term agreements with their suppliers for raw materials and an inability to procure the desired quality, quantity of raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on our business, results of operations, financial condition and cash flows.

IPO Details: