Aeron Composite Limited IPO Review
Neutral125-125 · SME
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Analyst Verdict
Aeron Composite Limited IPO
Neutral
IPO at a Glance
Price Band
125-125
Issue Size
56cr
Min. Investment
₹1,25,000
Opens
2024-08-26
Closes
2024-08-28
Listing
2024-09-02
Category
SME
Key Strengths
✓A diverse range of fiberglass-reinforced polymer products: The company deals in a wide range of FRP products that are long-lasting as these products are corrosion resistant, lightweight, easy to install, carry low maintenance cost, etc. These features and benefits make its products better for use in various markets and applications such as telecommunication, oil & gas, refineries, renewable energy, chemicals, etc.
✓Revenue from multiple geographies from various countries across the globe: The company has a healthy revenue mix of both domestic and diversified geographical locations. Its presence in multiple geographies not only helps it expand its customer base but also helps it stay in tune with the latest technological advancements.
Key Risks
⚠Underutilization of manufacturing capacities: The company has utilized 61% of its manufacturing capacities in FY24. Any inability to effectively utilize its existing manufacturing capacities could adversely affect the business and its future financial performance.
⚠Reliance on top clients: The company derives nearly 41% of its revenue from the top 10 customers. Any reduction in business from these customers or any other major clients could negatively impact revenue and profitability.
⚠Capital-intensive business: The company’s business is capital-intensive in nature. If they are unable to raise additional funds whenever required, or on terms acceptable to them, the company may be required to scale down or abandon its expansion & growth plans and/or reduce capital expenditures and the size of the operations.
Frequently Asked Questions
Should I apply for Aeron Composite Limited IPO?
Based on our analysis, our rating for Aeron Composite Limited IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Aeron Composite Limited IPO?
Underutilization of manufacturing capacities: The company has utilized 61% of its manufacturing capacities in FY24. Any inability to effectively utilize its existing manufacturing capacities could adversely affect the business and its future financial performance. Reliance on top clients: The company derives nearly 41% of its revenue from the top 10 customers. Any reduction in business from these
What are the strengths of Aeron Composite Limited IPO?
A diverse range of fiberglass-reinforced polymer products: The company deals in a wide range of FRP products that are long-lasting as these products are corrosion resistant, lightweight, easy to install, carry low maintenance cost, etc. These features and benefits make its products better for use in various markets and applications such as telecommunication, oil & gas, refineries, renewable energy
What is the price band of Aeron Composite Limited IPO?
The price band for Aeron Composite Limited IPO is 125-125. The IPO has closed.
Full Analysis Available
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