The Purv Flexipack Limited IPO witnessed an exceptional surge on its second day, achieving a subscription rate of 130.87 times. This impressive figure shows robust investor enthusiasm and trust in the company’s future growth and market presence. Such a significant oversubscription underscores the high demand and attractiveness of the IPO, marking it as a standout in the investment landscape. The overwhelming response from investors on Day 2 underscores the strong allure and potential of Purv Flexipack in the eyes of the market.
Purv Flexipack Limited IPO – Fundamental Analysis
Purv Flexipack Ltd showcases significant revenue and profit growth, with revenues jumping from ₹13,303.75 lakhs in 2021 to ₹33,317.44 lakhs in 2023 and PAT rising to ₹826.13 lakhs in 2023. There’s a steady increase in expenses, reflective of business scaling. RoNW and EPS have modestly improved, suggesting enhanced profitability and shareholder value. The company’s total assets and liabilities have expanded, necessitating a careful examination of its debt management and leverage ratios, highlighting its potential as an investment opportunity.
Purv Flexipack Limited IPO – Risks And Challenges
Purv Flexipack faces risks, including supplier inconsistencies that may lead to customer attrition, and unpredictable supply chain and cost fluctuations. The company’s heavy reliance on working capital necessitates accurate inventory control; miscalculations could affect revenues and cash flow. Additionally, ongoing and potential future government regulations targeting plastic usage, like the Plastic Waste Management Rules and Extended Producer Responsibility, pose significant risks to their business model, as stricter anti-plastic laws could substantially disrupt operations.
