Premium Plast Limited IPO Review
Neutral49-49 · SME
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Analyst Verdict
Premium Plast Limited IPO
Neutral
IPO at a Glance
Price Band
49-49
Issue Size
26cr
Min. Investment
₹1,47,000
Opens
2024-10-19
Closes
2024-10-21
Listing
2024-10-26
Category
SME
Key Strengths
✓The company is an IATF-16949, ISO 9001:2015, and ISO 14001:2004 specialized plastic injection and blow mould components manufacturer.
✓It has established long-standing relationships with several well-known Indian and international customers.
✓The company has developed a sustainable business model wherein it reuses the waste plastic material which helps it reduce plastic waste and raw material costs and also makes its manufacturing units ‘zero-discharge’ units.
✓The company’s manufacturing units in Pithampur, MP, and Vasai East, Mumbai are strategically situated in industrial zones which are manufacturing hubs for various industries.
Key Risks
⚠Nearly 85% of the company’s revenues depend on VE Commercial Vehicles Limited and certain major customers. The loss of such customers and significantly reduced purchases could drastically impact the business prospects.
⚠Pricing pressure from customers may adversely affect the gross margin, profitability, and ability to increase the prices, which in turn may materially adversely affect the business and financial condition.
⚠The company is heavily dependent on the performance of the passenger vehicle market in India. Any adverse changes in the conditions affecting the passenger vehicle market can adversely impact its business.
⚠Any delays and/or defaults in payments by intermediaries could increase the working capital investment and/or a reduction of the company’s profits, thereby affecting its operations and financial condition.
Frequently Asked Questions
Should I apply for Premium Plast Limited IPO?
Based on our analysis, our rating for Premium Plast 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 Premium Plast Limited IPO?
Nearly 85% of the company’s revenues depend on VE Commercial Vehicles Limited and certain major customers. The loss of such customers and significantly reduced purchases could drastically impact the business prospects. Pricing pressure from customers may adversely affect the gross margin, profitability, and ability to increase the prices, which in turn may materially adversely affect the business
What are the strengths of Premium Plast Limited IPO?
The company is an IATF-16949, ISO 9001:2015, and ISO 14001:2004 specialized plastic injection and blow mould components manufacturer. It has established long-standing relationships with several well-known Indian and international customers. The company has developed a sustainable business model wherein it reuses the waste plastic material which helps it reduce plastic waste and raw material costs
What is the price band of Premium Plast Limited IPO?
The price band for Premium Plast Limited IPO is 49-49. The IPO has closed.
Full Analysis Available
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