IPO Note - Tarsons Products Ltd By Swastika Investmart
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Tarsons Products Limited is a Indian labware company engaged in the designing, development, manufacturing and marketing of ‘consumables’, ‘reusables’ and ‘others’ including benchtop equipment, used in various laboratories across research organizations, academia institutes, pharmaceutical companies, Contract Research Organizations (‚CROs‛), Diagnostic companies and hospitals. Company’s product portfolio is classified into three key categories which include consumables, reusables, and others. ‘Consumables’ category includes products such as centrifuge ware, cryogenic ware, liquid handling, PCR consumables and petri dish, transfer pipettes and others. ‘Reusables’ category includes products such as bottles, carboys, beakers, measuring cylinders and tube racks. ‘Others’ category includes benchtop instrumentation such as vortex shakers, centrifuges pipettors and others. Company is one of the leading Indian company in terms of revenue in the plastic labware market in India
* Company currently operates through their five manufacturing facilities located in West Bengal. These facilities are vertically integrated and equipped with automated support systems that help them to maintain quality, increase productivity, and reduce costs.
* They have over 36 years of experience in life sciences through which they gained expertise in the production of a wide range of labware products.
* Company have received CE-IVD certificate for their products such as micro and macro tips, cryo vials and centrifuge tubes.
* Company supply their products to over 40 countries across both developed and emerging markets through a blend of branded and ODM sales.
* They supply products to life sciences industry under the brand label ‚TARSONS WITH THE WORDS -TRUST DELIVEREDTM‛.
Outlook & Valuation:
The company has shown stable growth in revenue in the last 3 years where we saw a minor dip in FY20 on the back of COVID-19. Revenue of the company has grown from Rs 184.7 cr to Rs 234.3 cr over the period of FY19 to FY21; during the same period profit has grown from Rs 39 cr in FY19 to Rs 68.9 cr in FY21. The margins of the company have grown significantly on the back of declining debt. Tarsons products limited is a company with great brand awareness and high-quality goods, India’s leading life sciences supplier. The company aims to be debt fee post the IPO and is planning for CAPEX which will further increase the revenues. The IPO is arriving at a PE of 34x on annualized Q1FY22 EPS of Rs. 4.88 which seems to be attractively priced. Thus we assign a "SUBSCRIBE" rating for listing gain and long term
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