Shiv Texchem Private Limited, established on March 31, 2005, is a Mumbai-based manufacturer specializing in chemical products, including rubber and plastic resin materials. The company has recently transitioned to a public limited entity, reflecting its growth and expansion in the manufacturing sector. With significant operating revenues exceeding INR 500 crore for the fiscal year ending March 2023, Shiv Texchem has demonstrated robust financial performance, highlighted by an impressive 88.46% increase in EBITDA compared to the previous year.
₹74
₹166
₹239
Expert Opinions
The Shiv Texchem IPO reflects a cautiously optimistic market sentiment, driven by the company’s solid financial performance and growth trajectory. Company Strengths include a robust supplier and customer network, with significant operating revenues exceeding INR 500 crore and an impressive EBITDA growth of 88.46% year-over-year, indicating strong operational efficiency.
However, Risks and Challenges persist, such as exposure to foreign exchange volatility and fluctuating commodity prices, which could impact margins. Valuation Analysis suggests a favorable outlook given the company’s healthy capital structure and debt protection measures. From a Long-Term Investment Perspective, Shiv Texchem’s expanding product portfolio and stable profitability position it well for sustained growth, making it an attractive option for investors seeking exposure in the chemical manufacturing sector.
Investor Considerations
Investors considering the Shiv Texchem IPO should evaluate several key factors. Company Performance and Fundamentals indicate a strong trajectory, with revenues rising from ₹1,118.67 crores in 2023 to ₹1,536.69 crores in 2024, alongside an impressive profit increase of 87.89%. The Sector Outlook remains positive due to rising demand for chemical products, bolstered by industrial growth. IPO Valuation is positioned attractively within the price band of ₹158 to ₹166 per share, reflecting the company’s growth potential.
Growth Prospects are promising, driven by expanding operations and a diverse product range in rubber and plastic materials. However, Risk Factors include exposure to volatile raw material prices and foreign exchange fluctuations. Lastly, investors should consider a Long-Term Investment Horizon, as the company’s solid fundamentals and market position suggest potential for sustained growth and profitability in the coming years.
| Date | GMP | Trend |
|---|---|---|
| 13 Oct 2024 12.59 | ₹74 | Up |
| 12 Oct 2024 10.24 | ₹44 | Up |
| 10 Oct 2024 11.07 | ₹30 | Down |
| 08 Oct 2024 10.57 | ₹40 | --- |
FAQs
The Grey Market Premium showed exceptional accuracy in predicting Shiv Texchem’s listing performance. The GMP of ₹74 predicted a 44.58% premium over the issue price, and the actual listing delivered a very similar 43.98% gain. With a minimal prediction error of just 0.42%, the GMP precisely captured both the direction and magnitude of the listing gains, demonstrating remarkable reliability as a price predictor in this case.
Shiv Texchem IPO Current GMP is ₹74.
Shiv Texchem IPO Expected Returns is 44.58%.
Shiv Texchem IPO estimated listing price is ₹240.