Chatha Foods Ltd IPO

Chatha Foods Ltd plans to launch a ₹34 crore IPO, offering 59.62 lakh shares to fund a new manufacturing unit and meet general corporate needs.

Important Details

Date: Mar19 to Mar 21, 2024 Listing Date: Mar 27, 2024 Price: INR 53 to 56 per share Lot Size: 2000 Shares Total Issue Size: INR 34 cr.

Fundamental Analysis

Chatha Foods Ltd shows fluctuating revenue and expenses but steady equity and profitability growth, indicating improved operational efficiency and promising investment potential.

Peer Comparison

Chatha Foods Ltd IPO shows lower total income & profit after tax than peers, yet boasts higher return on net worth & EPS, indicating strong operational efficiency and profit potential.

Objective

Chatha Foods IPO aims to set up a new manufacturing unit in Mohali for Vegetarian Frozen RTE & RTC products with INR 24.11 crores, while the rest supports general corporate goals.

Risks And Challenges

Chatha Foods faces risks from heavy dependence on non-vegetarian sales, past cash flow issues, and quality control concerns leading to order cancellations and product liabilities.

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