Australian Premium Solar IPO Financial Analysis

Australian Premium Solar (India) is one of the recognised brands in the solar industry, engaged in the manufacturing of monocrystalline and polycrystalline solar panels, as well as providing engineering, procurement, and construction services for these products is set to launch its IPO on 11 January 2024. Here's a summary of the company's business model, strengths, weaknesses, and growth prospects to assist investors in making informed decisions.

Australian Premium Solar IPO Overview

Australian Premium Solar (India) Ltd, established in 2013, specialises in manufacturing monocrystalline and polycrystalline solar modules. The company also offers engineering, procurement, and construction (EPC) services for residential, agricultural, and commercial projects. Their product range includes two types of solar panels: Monocrystalline, known for higher efficiency and a uniform appearance, and Polycrystalline, featuring a speckled appearance.

The company's services extend to the installation of solar panels and solar pumps for residential, industrial, and agricultural users. Till now they have installed over 10,000 solar panels, with more than 9,500 on residential rooftops and over 1,300 paired with solar pumps for agricultural applications.

Australian Premium Solar (India) Ltd operates a manufacturing facility in Sabar Kantha, Gujarat, with a workforce of approximately 169 employees.

Australian Premium Solar IPO Strengths

1.  The company is led by a team of experienced promoters and skilled managers.
2.  Building lasting relationships with clients.
3.  Expandable Business Model.

Australian Premium Solar IPO Weakness

1. Relies on several major customers for its sales. If any of these customers are lost, it could impact both revenues and profitability.

2. Revenue heavily relies on its operations in the geographical region of the state of Gujarat. Any negative changes or challenges in these operations could impact the company's business, financial health, and overall performance.

3. Specialises in offering EPC services for solar rooftops and solar pumps. It receives subsidies from the state/central government for residential rooftop and agricultural projects. If these subsidies are reduced or discontinued, it could lead to a decrease in the number of potential customers.

4. It has only one manufacturing facility and if there are any issues with its operations, it could affect the company's business, financial performance, and overall condition.

Australian Premium Solar IPO Details

Australian Premium Solar IPO is scheduled from 11 to 15 January 2024. It has a face value of ₹10 per share, and the IPO's price range is ₹51- ₹54per share.

Financial Performance of Australian Premium Solar IPO

Australian Premium Solar company's profit margins, as indicated by its DRHP, show a steady increase over the years. In the financial years FY21, FY22, and FY23, the margins were 4.80%, 5.30%, and 6.20%, respectively.

Key Ratios

Return on Equity (ROE) percentages for Australian Premium Solar, highlighted in its DRHP, show how well the company performed in recent fiscal years. ROE was 21.25% in FY21, increased to 24.26% in FY22, and then slightly decreased to 23.01% in FY23.

Promoters of Australian Premium Solar IPO

1. Mr. Chimanbhai Ranchhodbhai Patel.

2. Mrs. Savitaben Chimanbhai Patel.

3. Mr. Nikunjkumar Chimanlal Patel.

Promoters of the company are Chimanbhai Ranchhodbhai Patel, Savitaben Chimanbhai Patel, and Nikunjkumar Chimanlal Patel. Currently, the promoters own 99.98% of the company. However, after the IPO introduces new shares, their ownership stake will decrease to 73.64%.

Australian Premium Solar IPO Vs. Peers

Australian Premium Solar (India) Limited, with a face value of ₹10.00 per share, has a P/E ratio of 23.58 and an EPS (Basic) of ₹2.29. In comparison, Zodiac Energy Limited, also with a face value of ₹10.00 per share, shows a higher P/E ratio of 40.79, while its EPS (Basic) is ₹2.18. These numbers offer a glimpse into the financial standing and relative performance of the two companies in the solar industry.

Final Words

This article takes a closer look into the upcoming Australian Premium Solar IPO, scheduled for subscription from 11 January 2024. It suggests that potential investors thoroughly review the company's details, financials, subscription status, and the Grey Market Premium (GMP). GMP indicates the anticipated listing performance, providing valuable insights for investors to make well-informed decisions. On 9 January 2024, Australian Premium Solar IPO GMP is Rs24 up from the issue price reflecting 44.44% up. Remember GMP is dynamic.