EPACK Durable IPO Financial Analysis

EPack Durables, incorporated on April 20, 2019, is the fastest growing Original Design Manufacturer (ODM) for room air conditioners in India and is set to launch its IPO on 19 January 2024. Here's a summary of the company's business model, strengths, weaknesses, and growth prospects to assist investors in making informed decisions

EPACK Durable IPO Overview

EPACK Durable Ltd, established in 2019, specializes in Original Design Manufacturing (ODM) for room air conditioners, producing key components like sheet metal parts, injection molded parts, cross-flow fans, and PCBA components. To counter seasonal demand, the company has diversified into small domestic appliances (SDA), including induction hobs, blenders, and water dispensers. With 5 operational units, 4 are located in Dehradun and one in Bhiwadi, Rajasthan

EPACK Durable IPO Strengths

1. Has good, long term connections with existing customers and room to grow by reaching out to new ones.
2. The company is a major player in the rapidly expanding Room Air Conditioner (RAC) and Small Domestic Appliance (SDA) manufacturing sectors.
3. EPACK creates products entirely in one location for improved quality and cost-effectiveness

EPACK Durable IPO Risk

1. The company uses contract labor for manufacturing. If this labor is not available or if there are unfavorable regulatory orders, it could affect operations.
2. The industry is tough, and if the company can't compete well, it could negatively impact its business, financial health, and cash flow.
3. EPACK relies heavily on a few key customers for its income. If it loses them it could impact the company's business, financial health, and overall performance.
4. Air conditioner business goes through financial ups and downs because of seasonal changes and market cycles.

EPACK Durable IPO Details

EPACK Durable IPO is scheduled from 19 to 23 January 2024. It has a face value of ₹10 per share, and the IPO's price range is ₹218- ₹230 per share

Financial Performance of EPACK Durable

EPACK Durable's profit margins were 5.70% in FY21, increased to 7.40% in FY22, and slightly dipped to 6.70% in FY23. These percentages reflect the company's profitability relative to its revenue during each fiscal year.

Key Ratios

EPACK Durable's Return on Equity (ROE) shows how well it's using shareholders' money for profits. In FY21, it was 11.32%, rose to 14.30% in FY22, and then dipped to 10.19% in FY23. These percentages indicate the efficiency of the company in generating returns for shareholders from their investments

Promoters of EPACK Durable IPO

1. Bajrang Bothra.
2. Laxmi Pat Bothra.
3. Sanjay Singhania
4. Ajay DD Singhania

EPACK was promoted by Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania and Ajay DD Singhania. Presently, the promoters collectively own 85.49% of the company. However, this ownership stake is expected to decrease to 65.36% post listing

EPACK Durable Vs. Peers

EPACK Durable has the lowest Earnings Per Share (EPS) among its peers, standing at 4.71. In comparison, other listed players in the same industry, such as Amber Enterprises India Ltd and Dixon Technologies (India) Ltd, have higher EPS values of 46.66 and 42.92, respectively.

Final Words

This article takes a closer look into the upcoming EPACK Durable IPO, scheduled for subscription from 19 January 2024. It suggests that potential investors thoroughly review the company's details, financials, subscription status and GMP. Grey Market Premium indicates the anticipated listing performance, providing valuable insights for investors to make well informed decisions. On 18 January 2024, EPACK Durable IPO GMP is ₹15 up from the issue price reflecting a 6.52% increase