Ratnaveer Precision Engineering had a stellar debut on the stock exchanges, with a premium of 30.61% over its issue price of Rs 98 per share. The stock started trading at Rs 128 on BSE and Rs 123.20 on NSE on September 11.
This strong listing is driven by high registration numbers as well as bullish momentum in broader markets. Investors offered 110.79 crore shares in the IPO, leading to 93.99 subscriptions of 1.17 crore shares.
Established in 2002, Ratnaveer Precision Engineering Limited is a manufacturer of stainless steel (SS) products focusing on the production of finished panels, washers, solar roof hooks, pipes and ducts. The company’s operating revenue grew at a CAGR (compound annual growth rate) of 17.3% from FY20 to FY23. In FY23, consolidated revenue increased by 12 % over the same period to Rs 479.75 crore. Net profit grew 164% year-on-year to Rs 25.04 crore.
Capital Market notes that no listed company is the exclusive stainless steel manufacturer of finished panels, washers, solar roofing hooks, pipes and tubes.
However, peers listed in similar industries include Jindal Stainless Steel, M.M. Forgings Limited, Menon Bearings Limited and Venus Pipes & Tubes Limited. At the issue price of Rs 98, Ratnaveer’s P/E stands at 19 times.
Meanwhile, MM Forgings trades at a TTM P/E of 17.6x, Menon Bearings at 26.2x, Venus Pipes and Tubes at 58.7x and Jindal Stainless Steel at 17.3x.
Anubhuti Mishra, equity research analyst at Swastika Investmart, said: “Investors participating in the IPO can look at taking profits and those looking to hold can maintain their stop loss at around 116 Rs”.
