LK Mehta Polymers Limited, established in 1995, is a prominent manufacturer and trader of plastic products. The company specializes in reprocessing polypropylene and polyethylene granules for various industries. The company has announced its IPO with a price band of ₹71 per share, and the issue is scheduled to Subscription on February 13, 2025 to February 17, 2025. Known for its brand “Super Pack,” LK Mehta focuses on high-quality products and timely delivery, ensuring customer satisfaction.
₹5
₹71
₹71.10
Expert Opinions
LK Mehta Polymers IPO enters the market at a time when investor sentiment towards the manufacturing and plastic products sector remains optimistic. With a growing demand for essential plastic goods across various industries, the company is well-positioned to capitalize on these opportunities. The company boasts strengths in its efficient product offerings, such as ropes and twines, and a strong focus on quality and timely delivery. Its established brand, “Super Pack,” further enhances its market appeal. However, LK Mehta faces risks related to fluctuations in raw material prices, regulatory changes, and competition in the plastic manufacturing industry.
Valuation metrics for FY 2024 are promising, with a Return on Equity (ROE) of 28.35%, Return on Capital Employed (ROCE) of 16%, and Return on Net Worth (RoNW) of 28.35%, indicating strong profitability and capital utilization. For long-term investors, LK Mehta Polymers offers potential growth, but should be approached with caution due to sector risks.
Investor Considerations
LK Mehta Polymers IPO offers an intriguing opportunity for investors, given the company’s consistent performance in the plastic manufacturing sector. The company has a solid track record of providing quality products like ropes, twines, and granules, which are widely used in agriculture, packaging, and transportation industries. The outlook for the plastic manufacturing sector remains positive, driven by continued demand for essential products and growing industrial applications.
For FY 2024, LK Mehta reported an Earnings Per Share (EPS) of ₹3.42 (Basic), a PAT margin of 4.53%, and a Debt-to-Equity ratio of 2.15, indicating a relatively high leverage but steady profitability. The company has significant growth prospects, especially with expanding market needs. However, investors should be mindful of potential risks, such as fluctuations in raw material costs, regulatory challenges, and competitive pressures. Given the company’s stable growth trajectory, a medium- to long-term investment horizon is recommended to fully realize potential returns while managing associated risks.
| Date | GMP | Trend |
|---|---|---|
| 20 Feb 2025 19.19 | ₹5 | --- |
| 19 Feb 2025 10.48 | ₹5 | Down |
| 18 Feb 2025 11.11 | ₹10 | --- |
| 17 Feb 2025 11.13 | ₹10 | --- |
| 15 Feb 2025 11.28 | ₹10 | --- |
| 14 Feb 2025 10.45 | ₹10 | Down |
| 13 Feb 2025 18.15 | ₹15 | Up |
| 11 Feb 2025 11.04 | ₹10 | --- |
| 10 Feb 2025 10.37 | ₹10 | --- |
| 09 Feb 2025 12.22 | ₹10 | Up |
| 08 Feb 2025 20.37 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting LK Mehta Polymers’ listing performance. While the GMP of ₹5 predicted a premium of 7.04% over the issue price, the stock delivered only a negligible gain of 0.14%. With a prediction error of 6.45%, the GMP significantly overestimated the listing gains, though it correctly predicted the positive listing direction.
LK Mehta Polymers IPO Current GMP is ₹5.
LK Mehta Polymers IPO Expected Returns is 7.04%.
LK Mehta Polymers IPO estimated listing price is ₹76.