The dyes and pigments sector presents significant investment opportunities through notable listings like Asahi Songwon Colors Ltd, Shree Pushkar Chemicals and Fertilisers Ltd, and Kiri Dyes and Chemicals Limited.
Content:
- Overview of the Dyes And Pigments IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Dyes And Pigments Sector IPOs
- Disadvantages of Investing in Dyes And Pigments Sector IPOs
- Role of Dyes And Pigments Industry in the Economy
- How to invest in Dyes And Pigments IPOs?
- Future outlook of Dyes And Pigments IPOs in India
- Dyes And Pigments IPOs in India – FAQ
Overview of the Dyes And Pigments IPOs in India
The dyes and pigments sector features prominent listings including Asahi Songwon Colors and Shree Pushkar Chemicals, demonstrating robust potential in specialized chemical manufacturing and export capabilities.
These offerings enable investors to participate in sector growth while benefiting from increasing textile industry demand, export opportunities, and expanding applications across multiple manufacturing segments nationwide.
IPO Fundamental Analysis
Shree Pushkar Chemicals and Fertilisers Ltd
Shree Pushkar Chemicals and Fertilisers Ltd demonstrated steady financial performance in FY24, marked by robust revenue and a consistent profitability trend compared to FY23. The company also maintained strong equity reserves, showcasing financial stability and operational resilience.
Revenue Trend: Revenue increased to ₹726.17 crores in FY24 from ₹684.03 crores in FY23, a growth of 6.15%. Expenses also rose to ₹665.49 crores in FY24 from ₹615.64 crores in FY23.
Equity and Liabilities: Equity capital remained unchanged at ₹31.63 crores in FY24. Reserves increased to ₹438.19 crores from ₹405.99 crores in FY23. Total liabilities grew to ₹709.58 crores from ₹656.97 crores.
Profitability: Operating profit declined to ₹60.68 crores in FY24 from ₹68.38 crores in FY23. OPM decreased to 8.23% from 9.88%, indicating slightly reduced efficiency.
Earnings per Share (EPS): EPS remained stable at ₹11.72 in FY24 compared to ₹11.77 in FY23, reflecting consistent earnings per equity share.
Return on Net Worth (RoNW): RoNW remained steady with a net profit of ₹37.06 crores in FY24, marginally lower than ₹37.23 crores in FY23, reflecting stability in shareholder returns.
Financial Position: Total assets increased to ₹709.58 crores in FY24 from ₹656.97 crores in FY23, driven by non-current assets of ₹357.41 crores and current assets of ₹352.17 crores. Contingent liabilities reduced to ₹109.20 crores from ₹116.41 crores.
Asahi Songwon Colors Ltd
Asahi Songwon Colors Ltd. presented a solid financial performance in FY24, showcasing improvements in profitability and stability in equity despite fluctuations in revenue and operating margins. The company’s focus on efficiency and strategic management is reflected in its year-over-year comparison.
Revenue Trend: Revenue decreased to ₹426.24 crores in FY24 from ₹504.55 crores in FY23, a 15.54% decline. Expenses reduced to ₹407.98 crores from ₹499.27 crores in FY23, improving cost management.
Equity and Liabilities: Equity capital remained stable at ₹11.79 crores in FY24. Reserves increased to ₹223.80 crores from ₹206.80 crores. Total liabilities rose to ₹574.74 crores, compared to ₹546.70 crores in FY23.
Profitability: Operating profit grew significantly to ₹18.26 crores in FY24 from ₹5.28 crores in FY23, reflecting improved efficiency. The operating profit margin (OPM) rose to 4.26% from 1.04%.
Earnings per Share (EPS): EPS improved to ₹17.01 in FY24 from -₹9.88 in FY23, indicating a remarkable recovery and improved shareholder returns.
Return on Net Worth (RoNW): Net profit surged to ₹15.64 crores in FY24 from a loss of ₹18.47 crores in FY23, significantly enhancing RoNW and overall profitability metrics.
Financial Position: Total assets increased to ₹574.74 crores in FY24 from ₹546.70 crores in FY23. Non-current assets rose to ₹325.33 crores, while current assets reached ₹249.42 crores, showcasing strengthened financial stability. Contingent liabilities decreased notably to ₹10.98 crores.
Kiri Dyes and Chemicals Limited
Kiri Dyes and Chemicals Limited demonstrated notable financial dynamics in FY24 compared to FY23, reflecting changes in revenue, profitability, and financial position. The company’s resilience is evident despite challenges, showcasing operational adjustments and focus on improving financial metrics over the fiscal year.
Revenue Trend: Sales marginally increased to ₹949.21 crores in FY24 from ₹945.07 crores in FY23. Expenses declined slightly to ₹961.36 crores in FY24 from ₹982.54 crores, reducing the operating loss.
Equity and Liabilities: Equity capital remained steady at ₹51.83 crores in FY24. Reserves grew to ₹2,760 crores from ₹2,627 crores. Total liabilities rose to ₹3,411 crores from ₹3,201 crores in FY23.
Profitability: Operating profit improved to -₹12.15 crores in FY24 from -₹37.48 crores in FY23. OPM narrowed its negative margin to -1.27% in FY24 compared to -3.95% in FY23.
Earnings per Share (EPS): EPS increased significantly to ₹25.66 in FY24 from ₹20.58 in FY23, reflecting a stronger recovery in shareholder returns despite operational challenges.
Return on Net Worth (RoNW): With a net profit of ₹133.02 crores in FY24 compared to ₹106.64 crores in FY23, RoNW improved, driven by higher profitability.
Financial Position: Total assets rose to ₹3,411 crores in FY24 from ₹3,201 crores in FY23, supported by an increase in non-current assets to ₹2,852 crores and current assets to ₹558.70 crores. Contingent liabilities increased to ₹58.44 crores.
IPO Financial Analysis
Shree Pushkar Chemicals and Fertilisers Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales Insight-icon | 726.17 | 684.03 | 584.00 |
| Expenses | ₹ 665.49 | ₹ 616 | ₹ 504 |
| Operating Profit | 60.68 | 68.38 | 79.67 |
| OPM % | 8.23 | 9.88 | 13.48 |
| Other Income | 10.74 | 7.92 | 7.19 |
| EBITDA | 71.42 | 76.31 | 86.85 |
| Interest | 2 | 2.21 | 2 |
| Depreciation | 21.62 | 18.51 | 14.14 |
| Profit Before Tax | 48.24 | 55.58 | 70.76 |
| Tax % | 23.17 | 33.01 | 21.5 |
| Net Profit | 37.06 | 37.23 | 55.55 |
| EPS | 11.72 | 11.77 | 18.01 |
| Dividend Payout % | 12.8 | 12.74 | 11.1 |
Asahi Songwon Colors Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 426.24 | 504.55 | 415.38 |
| Expenses | 407.98 | 499.27 | 378.70 |
| Operating Profit | ₹ 18.26 | ₹ 5 | ₹ 37 |
| OPM % | 4.26 | 1.04 | 8.81 |
| Other Income | 28.42 | 5.86 | 0.89 |
| EBITDA | 21.07 | 11.14 | 37.56 |
| Interest | 12.55 | 14.02 | 4.72 |
| Depreciation | 16 | 14.86 | 12 |
| Profit Before Tax | 17.91 | -17.74 | 20.88 |
| Tax % | 12.7 | -4.1 | 29.84 |
| Net Profit | 15.64 | -18.47 | 14.65 |
| EPS | 17.01 | -9.88 | 16.1 |
| Dividend Payout % | 2.94 | -5.06 | 3.11 |
Kiri Dyes and Chemicals Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 949.21 | 945.07 | 1,497 |
| Expenses | 961.36 | 982.54 | 1,376.00 |
| Operating Profit | ₹ -12.15 | ₹ -37 | ₹ 121 |
| OPM % | -1.27 | -3.95 | 8.09 |
| Other Income | 8.67 | 3.34 | 1.98 |
| EBITDA | -3.48 | -34.14 | 123.27 |
| Interest | 22.82 | 6.31 | 4.78 |
| Depreciation | 49 | 48.88 | 50 |
| Profit Before Tax | -74.94 | -89.33 | 68.32 |
| Tax % | -17.29 | -17.5 | 22.55 |
| Net Profit | 133.02 | 106.64 | 388.77 |
| EPS | 25.66 | 20.58 | 75 |
About the Company
Shree Pushkar Chemicals and Fertilisers Ltd
Shree Pushkar Chemicals and Fertilisers Ltd, established in 1993, is a leading manufacturer of dyes, dye intermediates, and fertilizers in India. It serves a diverse clientele, from small-scale farmers to multinational corporations.
The company operates across five verticals, including dyes, acids, and cattle feed supplements. With a focus on innovation and sustainable growth, it continues to expand its market presence in the dye and fertilizer sectors.
Asahi Songwon Colors Ltd
Asahi Songwon Colors Ltd specializes in the production of CPC Beta Blue and Blue Crude pigments, exporting a majority of its products to global multinational corporations. It is a key player in India’s pigment industry.
The company prioritizes sustainable practices, customer satisfaction, and capacity enhancement. Asahi Songwon aims to strengthen its position as a market leader through innovation and cost-efficient strategies.
Kiri Dyes and Chemicals Limited
Kiri Dyes and Chemicals Limited is a prominent manufacturer of dyes, intermediates, and basic chemicals, catering to industries like textiles, leather, and paper. It has a strong reputation for quality and reliability.
With a focus on sustainability and technological advancements, the company is expanding its product range and global market reach, contributing significantly to the dyes and chemicals sector.
Advantages of Investing in Dyes And Pigments Sector IPOs
The main advantages of Investing in Dyes And Pigments Sector IPOs include exposure to India’s textile sector growth, strong export potential, diverse application opportunities, and strategic market positioning through established companies like Kiri Dyes and Chemicals.
1. Export Leadership: The sector benefits from strong global demand, established international markets, quality manufacturing standards, competitive pricing advantages, and significant foreign exchange earnings potential.
2. Diverse Applications: Products serve multiple industries including textiles, plastics, paints, printing inks, and paper, providing stable revenue streams and growth opportunities across sectors.
3. Technology Integration: Modern manufacturing processes, research capabilities, and quality control systems enhance operational efficiency and product competitiveness in global markets.
Disadvantages of Investing in Dyes And Pigments Sector IPOs
The main challenges of Investing in Dyes And Pigments Sector IPOs include raw material price volatility, environmental compliance requirements, international competition, and margin pressures, as demonstrated by companies like Shree Pushkar Chemicals and Fertilisers Ltd.
1. Environmental Regulations: Companies face strict pollution control norms, effluent treatment requirements, sustainable production mandates, safety standards compliance, and continuous environmental monitoring needs affecting operational costs.
2. Input Cost Sensitivity: Fluctuating raw material prices, energy costs, supply chain disruptions, import dependencies, and currency fluctuations significantly impact production costs and profit margins.
3. Market Competition: Global competition, pricing pressures, quality standards, and innovation requirements demand continuous investments in research, technology upgrades, and market development activities.
Role of Dyes And Pigments Industry in the Economy
The dyes and pigments sector drives economic growth through extensive employment generation, export earnings, technology advancement, and support to textile, printing, and manufacturing industries.
The industry contributes significantly to chemical exports, promotes innovation, enhances manufacturing capabilities, supports downstream industries, and strengthens India’s position in global markets.
How to invest in Dyes And Pigments IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements, and thoroughly research upcoming sector IPOs through detailed fundamental analysis.
Monitor SEBI announcements, company prospectuses, market conditions, and sector trends, and maintain required funds for a timely subscription while following systematic investment approaches.
Future outlook of Dyes And Pigments IPOs in India
The sector demonstrates promising growth potential with increasing textile industry demand, export opportunities, technological advancements, and expanding applications across multiple industries.
Industry modernization, research development initiatives, and market expansion plans indicate positive prospects for future IPOs, supported by growing domestic and international market demands.
Dyes And Pigments IPOs in India – FAQ
These IPOs represent the first public offerings from companies manufacturing dyes and pigments, like Asahi Songwon Colors Ltd and Kiri Dyes and Chemicals, enabling participation in specialized chemical growth.
Major listings include Asahi Songwon Colors Ltd, Shree Pushkar Chemicals and Fertilisers Ltd, and Kiri Dyes and Chemicals Limited, offering exposure to specialized manufacturing.
The sector IPOs provide strategic investment opportunities in India’s chemical industry growth, with companies like Shree Pushkar Chemicals demonstrating potential for sustainable expansion.
Shree Pushkar Chemicals and Fertilisers Ltd marks a significant milestone as a prominent sector public offering, showcasing strong market interest and setting industry valuation benchmarks.
Begin by opening a trading account through Alice Blue, complete comprehensive KYC requirements, analyze market conditions, study company fundamentals, and maintain adequate subscription funds.
The sector offers substantial long-term growth potential, supported by India’s expanding textile industry, export opportunities, technological advancements, and diverse application developments.
Historical performance indicates strong profitability potential, though returns depend on raw material costs, environmental compliance, research investments, and company-specific operational efficiencies.
Market observers anticipate new sector IPOs, following successful listings like Asahi Songwon Colors and Kiri Dyes and Chemicals, driven by industry growth opportunities.
Access comprehensive research and analysis through Alice Blue’s dedicated research portal, along with additional information from financial websites, SEBI documentation, and industry reports.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
