IPO Analysis Polysil Irrigation Systems

What Polysil Irrigation Do?

Under Polysil brand, Polysil Irrigation Systems Limited was founded in 1985 & produces & markets HDPE pipes, fittings, & micro irrigation systems, including sprinkler & drip systems, along with their associated products & accessories.

Polysis Irregation’s Product Range

HDPE pipes, pipe fittings, irrigation equipment, fertilizer tanks, digital controllers, pressure gauges, gravel sand filters, screen filters, hydro cyclone filters, compression fittings, & electrical & mechanical valves are among products offered by firm.

Polysil Irrigation Systems Limited Financial Analysis

Analysis

Assets
1. Company's total assets have shown consistent growth over periods, increasing from 4,178.47 lakhs as of March 31, 2021, to 5,671.49 lakhs as of September 30, 2023.
2. This steady growth indicates company's expansion & investment in its operations & assets.

Revenue
1. Revenue fluctuated over periods, reaching its peak at 5,472 lakh as of March 31, 2021, & then declining to 1,020 lakh as of September 30, 2023.
2. Decrease in revenue may be attributed to various factors such as changes in market conditions, demand fluctuations, or strategic business decisions.

Profit After Tax (PAT)
1. Profit after tax (PAT) experienced fluctuations but overall showed increasing trend, rising from 64.81 lakh as of March 31, 2021, to 113.53 lakh as of March 31, 2023, before slightly decreasing to 110.31 lakh as of September 30, 2023.
2. Increasing trend in PAT indicates company's ability to generate profits over periods analysed.

Net Worth
1. Net worth has shown consistent growth, increasing from 1,338.31 lakh as of March 31, 2021, to 1,646.02 lakh as of September 30, 2023.
2. This growth reflects accumulation of retained earnings & shareholders' equity, indicating overall financial health & stability.

Reserves & Surplus
1. Reserves & surplus experienced fluctuations, reaching its peak at 1,326.56 lakhs as of March 31, 2022, before declining significantly to 546 lakh as of March 31, 2023, & then increasing again to 656.31 lakh as of September 30, 2023.
2. Fluctuations in reserves & surplus may be influenced by various factors such as dividend pay-outs, capital restructuring, or changes in accounting policies.

Total Borrowing
1. Total borrowing has shown overall increasing trend, rising from 1,104.83 lakhs as of March 31, 2021, to 1,566.17 lakh as of September 30, 2023.
2. Increase in total borrowing may indicate company's reliance on external financing to support its growth & operations.

Interpretation
1. Company's increasing assets, net worth, & profit after tax demonstrate overall growth & profitability over periods analysed.
2. Fluctuations in revenue & reserves & surplus suggest possible challenges/adjustments in company's operations or financial management.
3. Steady increase in total borrowing indicates company's need for external financing, which may require careful monitoring to ensure sustainable growth & financial stability.

Polysil Irrigation Systems IPO Peer Comparison

Analysis

1. EPS: Polysil's EPS is lower than average, suggesting potentially lower profitability compared to its peers.
2. NAV (per share): Polysil's NAV per share is lower than average, indicating relatively lower asset base.
3. P/E Ratio: Polysil's P/E ratio is significantly higher than average, suggesting higher valuation relative to earnings compared to its peers.
4. RoNW: Polysil's RoNW is higher than average, indicating relatively better return on net worth compared to its peers.
5. P/BV Ratio: Polysil's P/BV ratio matches average, suggesting comparable valuation relative to its book value compared to its peers.

Conclusion

Polysil Irrigation Systems IPO shows mixed performance compared to its peers. While it has higher RoNW & similar P/BV ratio, its lower EPS, NAV per share, & significantly higher P/E ratio could raise concerns about its valuation & profitability.
Investors considering Polysil's IPO should carefully evaluate these metrics & consider company's growth prospects & competitive positioning before making investment decisions.