Archives: Ipos

Orkla India Limited is a well-established, multi-category food manufacturer with a strong legacy spanning several decades. The company offers a diversified portfolio that caters to every meal occasion from breakfast and main meals to snacks, beverages, and desserts. It holds a leading position in the packaged spices segment across key southern markets, including Karnataka, Kerala, Andhra Pradesh, and Telangana. The Indian spices market has expanded at a robust CAGR of 11.5%, reaching approximately Rs. 1,230 billion in FY24, and is expected to grow further to Rs. 2,080 billion by FY29. This strong growth momentum is supported by multiple structural drivers such as rising disposable incomes, growing urbanization, increasing adoption of e-commerce and quick-commerce platforms, the need for convenience, and the rising awareness of spices’ medicinal and functional benefits. Similarly, India’s packaged food market is projected to grow at a CAGR of 11.0%, reaching Rs. 17,120 billion by FY29, driven by evolving consumer lifestyles, a higher share of nuclear families, growing female workforce participation, and increasing affordability. As part of its growth strategy, Orkla India has been expanding its international presence, with a key focus on strengthening its footprint across GCC countries. On the financial front, the company has demonstrated strong and consistent performance, with an EBIT margin of 14% in FY25, the highest among peers. The company delivered Sales/EBITDA/PBT CAGR of 5.0%/12.9%/22.9%, respectively, while adj. PAT declined from Rs. 338 crores in FY23 to Rs 289 crores in FY25 due to tax reversal in FY23. At the upper price band of Rs. 730, Orkla India Ltd. is valued at a P/E multiple of 39.0x based on FY25 earnings. Given the company’s historical growth track record, expanding margins, scalable business model and industry growth potential, we believe the valuation is justified. Thus, we recommend a “SUBSCRIBE” rating for this issue with a medium to long-term investment horizon.

Midwest Ltd is India’s largest producer and exporter of Black Galaxy Granite, commanding approximately 64% of the Indian export market in FY25 with exports of 44,992 cubic meters. The company is also a key player in Absolute Black Granite, accounting for 15.7% of India’s total black granite production. With advanced manufacturing facilities, Midwest continues to strengthen its leadership through strategic investments in wholly owned subsidiaries and the adoption of renewable energy solutions. India’s granite industry, valued at around USD 40 billion, presents significant potential for employment generation in rural areas and benefits from strong global demand as granite remains a premium decorative and construction material overseas. Midwest’s success is underpinned by its robust market share, focus on product quality, and long-standing customer relationships, which reinforce its reputation as a trusted global supplier of premium natural stone. The company’s strategic roadmap focuses on capacity expansion, diversification into engineered stone and quartz products, and investments in green technologies to enhance sustainability and operational efficiency. The company also aims to improve logistics, optimize its supply chain, and reduce its environmental footprint, increasing operational efficiency and positioning itself for regulatory trends. The company’s established market positions and growing global demand for natural and engineered stone products suggest resilient profits. On the financial front, the company has delivered healthy CAGR growth over FY23–25, with Revenue/EBITDA/PAT CAGR of 11.6%/38.5%/ 56.5%. The future outlook appears strong, with Midwest poised to leverage industry growth, premium product positioning, and planned expansion projects. At the upper price band, the company is valued at a P/E multiple of 27.0x FY25 earnings. We, thus, recommend a “SUBSCRIBE” rating for this issue.

CRAMC is one of India’s oldest and most established asset management companies, with a diversified portfolio spanning equity, hybrid, and debt schemes. The company’s research-driven investment process, combining top-down and bottom-up fundamental analysis, has enabled its equity-oriented schemes to consistently outperform benchmarks over long-term horizons, delivering superior risk-adjusted returns. The company plans to continue delivering strong medium to long-term investment performance through its disciplined, research-backed process. Growth initiatives include expanding geographical reach, increasing AUM contributions from debt-oriented schemes, launching new equity and multi-asset products, and leveraging Canara Bank’s branch network to capture opportunities in B-30 cities. CRAMC also aims to enhance its digital platforms, offering seamless onboarding, transaction capabilities, and distributor support, alongside new CRM, cash management, and vendor management solutions to improve operational efficiency. Financially, CRAMC has delivered strong performance over FY2023-25 period, with revenue, EBITDA, and PAT growing at a CAGR of 40.5%, 52.9%, and 55.4%, respectively, while maintaining healthy margins and a robust RoE of 31.8% in FY25. With a conservative investment approach, strong retail penetration, technology-enabled distribution, and clearly defined strategic initiatives, CRAMC is well-positioned to benefit from the projected 16-18% CAGR growth in India’s mutual fund industry over FY2025-30 period. At the upper band of the issue price range, the company trades at a P/E of 27.8x based on FY25 earnings. Given its strong fundamentals, long legacy, and execution-focused strategies, we recommend a “SUBSCRIBE” rating from a medium- to long-term perspective.

Canara HSBC Life Insurance aims to increase life insurance penetration by maximizing synergies with its bancassurance partners, focusing on seamless customer onboarding and tailored product offerings. The Indian life insurance industry is projected to register a premium CAGR of 8–10% between FY24 and FY28, with bank-led insurers expected to outperform, growing at 10–12% CAGR during the same period. This growth outlook is supported by strong macroeconomic fundamentals such as robust GDP expansion, a young and productive demographic base (64% of the population aged 15–59 in CY23), and rapid urbanization. A key element of this strategy involves leveraging Canara Bank’s extensive distribution network, provides access to 117 million customers through 9,849 branches across India, thereby enabling deeper market penetration and scalable growth within the existing partnership ecosystem. On the financial front, the company has demonstrated steady value creation, as reflected in the consistent growth of its Embedded Value (EV) rising from Rs. 42,719.3 million in FY23 to Rs. 51,798.6 million in FY24, and further to Rs. 61,107.4 million in FY25, with an additional uptick to Rs. 63,526.4 million as of June 30, 2025. This sustained increase underscores the company’s strong operational performance, profitable business growth, and disciplined capital management, reinforcing its long-term shareholder value creation potential. Additionally, with 10.5 million lives covered, the company demonstrates a broad customer base and deep market reach, underscoring the trust and confidence policyholders place in its life insurance offerings. At the upper price band of Rs 106, the company is currently valued at a P/EV (Price to Embedded Value) multiple of 1.6x (FY25), which appears attractive in comparison to industry peers, indicating potential undervaluation as growth and profitability sustain. We, thus, recommend a “SUBSCRIBE” rating for this issue.

Rubicon Research Ltd. is a pharmaceutical formulations company with a strong innovation-led approach, driven by focused research and development and an expanding portfolio of specialty and drug-device combination products for regulated markets, particularly the US. The company’s portfolio of 72 active ANDAs, 9 NDAs, and 1 OTC monograph approved by the USFDA reflects a well-established and sustainable product base with high entry barriers. Its four USFDA-approved manufacturing facilities and two R&D centers provide integrated capabilities across development, scale-up, and commercialisation, positioning the company for consistent growth. The company pipeline of complex, drug-device combination nasal spray products in multiple therapy areas, including CNS conditions, which require specialised capabilities for their development and manufacturing, along with an experienced team. The global pharmaceutical market is projected to grow at a CAGR of 6.7% from USD 1,733.1 billion in FY24 to USD 2,395.6 billion in FY29, outpacing the historical growth of 6.3% registered during the FY2019-24 period. Rubicon Research, one of the fastest-growing Indian pharma players, has established a dominant presence in the US, which contributes 93-98% of revenues, achieving a revenue CAGR of 80.7% with 66 products in the US and over 25% market share in nine products, reflecting deep penetration in the world’s largest pharmaceutical market. With Rubicon’s strong US market leadership, high-margin specialty portfolio, and expanding presence across regulated markets, capacity utilisation is expected to ramp up as new products receive regulatory approvals, potentially enabling revenue to double over the next 2-3 years. At the upper price band, the company is valued at a P/E multiple of 55.9x FY25 earnings. We, thus, recommend a “SUBSCRIBE” rating for this issue.

LG Electronics India Ltd. is a market leader in India’s home appliances and consumer electronics industry, commanding #1 market share across key product categories, including washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves in the offline channel. The company’s leadership is underpinned by a broad and technologically advanced product portfolio, a strong brand presence, and one of the largest distribution networks among its peers, with 35,640 B2C touch points spanning urban and rural India as of June 30, 2025. The company’s pan-India presence across multiple distribution formats enhances its reach to consumers, enabling it to maintain sustained market dominance and a strong connection with end customers. To capitalise on market opportunities and further strengthen its competitive position, LGEIL is pursuing a multi-pronged growth strategy. The company plans to construct a third manufacturing facility in Andhra Pradesh to expand production capacity and address anticipated growth in consumer demand. Existing manufacturing capabilities are set to be enhanced through additional automation technologies, improving efficiency and flexibility. LGEIL also aims to optimise its supply chain by increasing locally sourced raw materials, thereby reducing costs and strengthening operational resilience. On the B2B front, the company plans to deepen its presence and introduce additional revenue streams, targeting a CAGR of ~14% from CY24 to CY29. The B2B expansion includes products such as HVAC systems, commercial information displays, commercial washing machines, LED displays, and electronic blackboards, catering to the growing institutional demand. On the financial front, the company has delivered healthy CAGR growth over FY23–25, with Revenue/EBITDA/PAT CAGR of 10.8%/28.0%/ 27.9%. The company has consistently demonstrated superior profitability and return ratios relative to industry peers, reflecting the effectiveness of its business model. With strong operational metrics, an expanding product portfolio, and strategic initiatives aimed at both B2C and B2B segments, LGEIL is well-positioned to sustain growth, strengthen profitability, and create long-term growth in India’s dynamic home appliances and consumer electronics market. At the upper price band of Rs 247, the company is valued at a P/E multiple of 35.1x FY25 earnings. We, thus, recommend a “SUBSCRIBE” rating for this issue.

Tata Capital Ltd., the flagship financial services company of the Tata Group and a subsidiary of Tata Sons Pvt. Ltd., is classified as an Upper Layer NBFC by the RBI. Since commencing operations in 2007, it has served over 7.3 million customers. With a comprehensive suite of over 25 lending products, the company caters to a broad customer base, including salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates. Additionally, Tata Capital distributes third-party products such as insurance and credit cards, provides wealth management services, and acts as a sponsor and investment manager for private equity funds. NBFCs have shown strong resilience and have gained importance in India’s financial ecosystem, growing from under Rs. 2 trillion AUM at the turn of the century to Rs. 48 trillion by the end of FY25. Going ahead, NBFC credit growth is projected at 15-17% between FY25 and FY28, supported by demand across retail, MSME, and corporate segments. Backed by the strength of its Tata Group parentage, diversified loan portfolio, robust risk management practices, and pan-India omni-channel presence, Tata Capital is well-positioned to benefit from this growth opportunity. The company’s proactive approach to risk management, with multiple layers of defence and advanced data analytics, has ensured strong asset quality. Tata Capital’s loan book is granular, with ticket sizes ranging from Rs. 10,000 to over Rs. 100 crores, and more than 98% of accounts have a ticket size below Rs. 1 crore. Its AUM grew at a CAGR of ~37.3% during FY23–FY25, reaching Rs. 2,33,363 crores in FY25, highlighting scalability supported by resilient underwriting standards. With ~80% of the book secured and a robust branch network, the company remains well-placed to tap further growth opportunities. The net proceeds from the fresh equity issue will be used to augment Tier-I capital, thereby strengthening the capital adequacy ratio and ensuring a stable leverage position. At the current P/BV multiple of 4.1x based on book value as of FY25, we believe the company is reasonably valued and recommend investors to “SUBSCRIBE” to the issue from a medium- to long-term perspective.

The company is a diversified agrochemical manufacturer with a portfolio addressing the full crop lifecycle, catering to cereals, vegetables, and horticultural crops across both kharif and rabi seasons in India. As of March 31, 2025, the company holds 410 generic registrations, comprising 380 for formulation grade and 30 for technical grade products. This broad regulatory base underscore its strong product pipeline, market credibility, and ability to serve a wide spectrum of agricultural needs. The company operates on a B2B model, supplying agrochemical products to corporate customers who market them under their own brands and distribution strategies. This approach allows the company to leverage the established distribution networks, brand equity, and market presence of leading players, ensuring wide penetration across diverse agricultural regions. Through this asset-light marketing model, the company is able to scale efficiently while focusing on manufacturing excellence. The customer base includes marquee names such as DCM Shriram Ltd., IFFCO MC Crop Science Private Limited, Indogulf Cropsciences Ltd., Mankind Agritech Pvt. Ltd., HPM Chemicals and Fertilizers Limited, and ULink AgriTech Pvt. Ltd., among others. The presence of such reputed clients highlights the company’s credibility, quality standards, and long-term demand visibility. During FY23, FY24, FY25, the company served 849, 1,194, and 1,135 corporate customers, respectively. Customers with over 3 years and 5 years of association contributed Rs. 1,951.9 million and Rs. 1,226.2 million to company’s revenue from operations, which represented 38.9% and 24.4% of their total revenue from operations in FY25. India, with 14% of the global crop-protection market, is a key player in boosting agricultural productivity. The demand for chemicals is projected to grow from 61,097 tonnes in FY20 to 89,170 tonnes by FY36. The industry is adopting sustainable practices and innovations, driving food security and reducing agriculture’s ecological impact, solidifying India’s leadership in crop protection. On the financial front, Advance Agrolife Ltd. has delivered strong performance, with revenue from operations growing at a healthy CAGR of 12% between FY23 and FY25, the second highest among its peers. While most competitors witnessed a slight decline in operating profit margins, the company showcased resilience against industry headwinds, expanding its margins from 6.3% in FY23 to 9.5% in FY25.  At the upper price band, the company is valued at a P/E of 18x based on FY25 earnings, which is cheaper compared to the industry average. We believe that the company’s superior return ratios and strong margins, positions it ahead of peers, enabling it to capitalize on structural industry tailwinds and drive sustainable growth. Thus, we recommend a “SUBSCRIBE” rating to the issue from a medium to long-term investment perspective.

OFFL serve as a trusted India-based agent, specialising in comprehensive import and export customs clearance services across all major air and seaports in the country. Backed by over four decades of operational and handling expertise, the company seamlessly combines in-depth customs knowledge with advanced information technology. Leveraging its extensive experience and established presence across India’s major ports, OFFL is well positioned to benefit from the expanding trade volumes, increased industrial activity, and growing demand for organised logistics services. OFFL’s ongoing investments in technology enable end-to-end visibility, faster decision-making, and cost optimisation. This technological edge positions the company to serve large clients in high-growth sectors such as FMCG, automotive, e-commerce, and oil & gas, which are increasingly seeking reliable, scalable, and technology-enabled logistics partners. The addition of strategically located, large-format multi-user warehouses, such as the upcoming Bhiwandi facility, allows OFFL to capitalise on the structural shift in India’s logistics sector post-GST, where companies are consolidating inventories into larger, more efficient facilities. By offering value-added services, automation, and proximity to key distribution hubs, OFFL can increase client stickiness, improve turnaround times, and expand volumes handled, directly contributing to revenue growth and margin expansion. On the financial front, the company delivered a tepid performance during FY20xx xx, growing revenue, EBITDA, and PAT at a CAGR of 2.0%, 6.4%, and-10.0%, respectively. EBITDA margin decreased from 7.1% in FY23 to 2.9% in FY24 before improving to 7.7% in FY25, while PAT margin declined from 5.8% in FY23 to 2.5% in FY24 and moderated to 4.5% in FY25. On the return front, the company reported modest ROCE and ROE of 13.7% and 12.7% in FY25, respectively, observing a decline from 20.0% and 19.5% in FY23. While OFFL has demonstrated strengths in integrated logistics, operational capabilities, and client relationships, its financial performance has been inconsistent, reflected in volatility in earnings and margins. Furthermore, near term geopolitical and macroeconomic uncertainties add risk to growth visibility. Additionally, ~80% of the issue comprises an Offer for Sale (OFS). In light of these factors, we remain largely cautious of the listing. We, thus, recommend an AVOID rating for the issue and will reassess our rating in future following sustained business performance in upcoming quarters

Glottis Ltd. delivers end-to-end logistics solutions with multimodal capabilities across verticals optimizing the movement of goods across geographies, including (i) ocean freight forwarding, (ii) air freight forwarding, (iii) road transportation, along with other ancillary services, such as warehousing, storage, cargo handling, third-party logistics (“3PL”) services and custom clearance, among others. The Indian freight forwarding market has witnessed steady growth, and is expected to reach USD 17 billion by FY29, growing at a CAGR of 10.9% over FY24-29. The Indian ocean freight market is projected to reach USD 13.9 billion by FY29, registering a CAGR of 11.9% over FY24-29. With India’s growing and diversifying economy, the demand for efficient and reliable freight forwarding services continues to rise. Glottis’s expertise in providing comprehensive logistics for specialised products having high entry barriers gives it a competitive edge over unorganized players. The installed capacity of India’s solar energy sector is expected to grow at a CAGR of 23.8% between FY25 and FY30, which will be beneficial for Glottis given its strong presence in the renewable energy sector’s import and export segment. The company’s focus on developing strong internal intelligence, ensuring quality and timely execution, has enabled it to maintain long-standing customer relationships while also acquiring new clients through referrals. Financially, Glottis has delivered a healthy performance, with revenue growing at a CAGR of 40.3%, EBITDA at 53.1%, and PAT at 58.2% over FY2023-25 period. Backed by a strong business model, deep market understanding, and customer retention capabilities, along with favorable industry tailwinds, the company is well positioned for long-term sustainable growth. At the upper price band, the company is valued at a P/E multiple of 18.4x based on FY25 earnings. We, thus, recommend a “SUBSCRIBE” rating for this issue.