Karnika Industries Limited- SME IPO

Karnika Industries is a dynamic and forward-thinking company that is into manufacturing and distribution of kids wear. The company has established a plant with advanced tools required for the preparation of samples, quality inspection, ironing & packing of garments, etc. With a commitment to quality, innovation, and customer satisfaction, Karnika Industries has established itself as a reputable player in the industry.

Karnika Industries Limited IPO is all set to go live on the 29th of September.

The company intends to raise Rs. 25.07 Crore by issuing fresh shares. Let's understand in detail with the help of a table:

Karnika Industries Limited IPO Date/Timetable:

Karnika Industries Limited- IPO- Grey Market Premium (GMP)

GMP for Karnika Industries has not started yet. Keep following for further updates.

Karnika Industries Limited- IPO- Promoters & Management:

The company has 6 Directors, of which 2 are independent directors. The company has 1 Key Managerial Post. Niranjan Mundhra holds a Key Management Post. He currently holds the posts of Chairman & Managing Director. The company also has 2 Full-time Directors. The posts are held by Shiv Shankar Mundhra & Mahesh Kumar Mundhra respectively.

Karnika Industries Limited- IPO- Financial Performance (In Lakhs)

The company revenue has consistently grown over the pas 3 years & as on 31st March 2023 stood at Rs. 126.05 Cr. in comparison to Rs. 98.92 Cr. in 2021.

Similarly, the company’s PAT has also seen a substantial growth from Rs. 4.54 Cr. in 2021 to Rs. 8.26 Cr.

Company borrowing has also seen a significant hike from Rs. 22.24 Cr. in 2021 to Rs. 52.45 Cr. in 2023.

Karnika Industries Limited- IPO- Comparison with Industry Peers

Karnika Industries has a market cap of just 94.24 Cr. which makes it a Micro Cap company in comparison to its peers SP Apparels which stands with a market cap of 1,286 Cr. which gives it an entry into Small Cap. segment. The P/E ratio of Karnika Industries stands at just 11.39 while that of it’s peer stands at 18.0. Comparison becomes interesting when we take it into account Industry PE stands at 31.0. This shows there is sizable room for growth. Karnika has a book value that is five times (approx ~ 5.12) that of its peer SP Apparels which is a concern since Industry PBV stands at just 1.31. On the other hand a marginally lower EV/EBITDA ratio suggests company has been performing well & is surely an undervalued investment prospect going forward.

Conclusion:

Karnika Industries Limited's journey toward its initial public offering represents a significant milestone in the company's growth story. With its strong foundation, diversified portfolio, and commitment to innovation and quality, Karnika Industries has the potential to attract investors seeking opportunities in the dynamic landscape of the stock market.