Sat Kartar Shopping Limited is preparing to launch its initial public offering (IPO) from January 10 to January 14, 2025, aiming to raise approximately ₹33.80 crores through a fresh issue of equity shares priced between ₹77 and ₹81 each. The company operates in the retail sector, focusing on providing a wide range of consumer products, which positions it well to capitalize on the growing demand in the Indian market. The funds raised will primarily be utilized for working capital requirements and expanding operational capabilities.
₹40
₹81
₹153.90
Expert Opinions
Market sentiment surrounding the Sat Kartar Shopping IPO is generally positive, reflecting investor interest in the growing retail sector. Company strengths include a diverse product range and a strategic focus on consumer needs, positioning it well to capture market share in a competitive landscape. However, potential risks and challenges involve dependence on consumer spending patterns, which can be volatile, especially during economic downturns.
Valuation analysis shows that the company has demonstrated impressive revenue growth, increasing from ₹51.91 crores in FY2022 to ₹127.90 crores in FY2024, which reflects strong operational performance and market demand. From a long-term investment perspective, Sat Kartar Shopping is well-positioned to benefit from increasing consumer demand in the retail sector.
Investor Considerations
Company performance and fundamentals indicate significant growth, with revenue rising from ₹82.98 crores in FY2023 to ₹128.11 crores in FY2024, alongside profits increasing from ₹2.51 crores to ₹6.31 crores, demonstrating effective management and operational efficiency. The sector outlook remains positive, driven by increasing consumer spending in the retail sector, particularly in fast-moving consumer goods (FMCG).
IPO valuation shows an EPS of ₹5.45 for FY2024, with a P/E ratio of 14.13 to 14.86, competitive in the retail sector. The company also boasts a 66.84% RoNW and a 91.55% ROCE, highlighting strong profitability and investment appeal. Growth prospects are bolstered by plans for expansion and enhancing product offerings to meet evolving consumer preferences. However, investors should be aware of potential risk factors, including market competition and economic fluctuations that could impact sales. A long-term investment horizon is recommended, as the company seeks to capitalize on favorable market trends while navigating inherent challenges.
| Date | GMP | Trend |
|---|---|---|
| 16 Jan 2025 16.32 | ₹40 | Down |
| 15 Jan 2025 10.52 | ₹60 | Up |
| 13 Jan 2025 11.24 | ₹30 | --- |
| 12 Jan 2025 16.31 | ₹30 | --- |
| 11 Jan 2025 12.37 | ₹30 | Up |
| 10 Jan 2025 11.08 | ₹20 | Up |
| 09 Jan 2025 11.03 | ₹10 | --- |
| 08 Jan 2025 11.01 | ₹10 | Up |
| 07 Jan 2025 10.41 | ₹00 | --- |
| 06 Jan 2025 11.42 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Sat Kartar Shopping’s listing performance. While the GMP of ₹40 predicted a premium of 49.38% over the issue price, the stock delivered a much stronger gain of 90%. With a substantial prediction error of 27.19%, the GMP significantly underestimated the magnitude of gains, though it correctly predicted the positive listing direction, demonstrating its limitations as a reliable price predictor in this case.
Sat Kartar Shopping IPO Current GMP is ₹40.
Sat Kartar Shopping IPO Expected Returns is 49.38%.
Sat Kartar Shopping IPO estimated listing price is ₹121.