The company primarily manufactures specialty chemicals which are used in a variety of industries including FMCG, apparel, poultry and animal feed industries and has a range of 2,030 different products. The company claims to be the largest manufacturer of textile specialty chemicals in India. Rossari Biotech operates in 18 countries including Vietnam, Bangladesh and Mauritius, besides India. It operates in three main product categories: Home, personal care and performance chemicals (46.8% of revenue), Textile specialty chemicals (43.71% of revenue), Animal health and nutrition (9.48%of revenue).
* Well diversified portfolio with positive outlook for the sector.
* Healthy Debt to Equity ratio of 0.23.
* Revenue grown by 32% CAGR and profit grown by 66% CAGR in last four years.
* There is no such negative but valuations are not cheap.
* The price band of INR 423-425 per share values the company at a P/E ratio range of 31.97 – 32.12.
Grey market premium: Around 100 (+25%)
View: Valuations are not cheap but looking at growth prospectus of the company with healthy balance sheet we recommend investors to subscribe this IPO for the long term perspective while there is decent probability of listing gain as well.
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