left
Hey There : )
right
blog/article/Karnika Industries Limited- SME IPO

Article Image

Karnika Industries Limited- SME IPO

Sep 29, 2023

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:


Open Date

Close Date

Lot Size

IPO Size

Issue Price

Minimum Investment

Lead Manager

Listing At

29th September

4th October

1600 Shares

Rs. 76

Rs. 25 Cr.

Rs. 1,21,600

Beeline Industries

National Stock Exchange


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)


Period Ended

31 March 2021

12 April 2022

31 March 2023

Net Asset Value Per Share

53.17

53.38

19.85

Revenue

9892.52

638.31

12,605.62

Profit After Tax

454.01

25.67

826.74

Net Worth

-

-

1806.83

Total Borrowing

2224.13

2493.58

5245.53


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


Categories

Karnika Industries

SP Apparels Limited


Market Cap.

94.24 Cr.

1,286 Cr.

P/E

11.39

18

P/B

5.12

1.91

EV/EBITDA

8.72

9.25


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.