Ideal Technoplast Industries Limited IPO

Apply 0
Avoid 0

Ideal Technoplast Industries Limited specializes in providing rigid plastic packaging solutions for various sectors, including paints, agrochemicals, cosmetics, adhesives, lubricants, food, and edible oil. The company’s Surat-based facility spans 20,000 sq. ft. and is equipped with cutting-edge technology, including a fully automated plant that utilizes robotic automation for In-Mould Labelling (IML). This advanced setup allows the company to maintain high production efficiency and consistent product quality.

Manufacturing Capabilities and Technology

The company is known for its specialization in manufacturing square packaging containers, which are recognized for their ruggedness, durability, and ease of handling heavy items. The manufacturing process is highly automated, with minimal human intervention, thanks to the use of robotic arms and in-mould labelling technology. This technology allows for direct printing on containers, ensuring a standardized and high-quality finish. The use of custom-designed moulds enables the company to meet specific customer requirements, further enhancing its market offering.

Additionally, Ideal Technoplast has invested in Heat Transfer Mould Labeling Technology, which also facilitates direct printing on containers, eliminating the need for separate labels and improving overall production efficiency.

Sustainability and Eco-Friendly Practices

Ideal Technoplast Industries Limited is committed to sustainability and has integrated eco-friendly practices into its manufacturing process. The company recycles waste plastic containers by shredding and grinding them into granules, which are then reprocessed with raw materials to create new containers and lids. This approach not only reduces environmental harm but also demonstrates the company’s dedication to sustainable manufacturing practices.

The facility’s setup, covering a 3,000 square meter plot area, supports substantial production capacity, further solidifying Ideal Technoplast’s position in the market. The company’s products are highly regarded in various industries for their durability, convenience in stacking and storage, and overall quality.

Conclusion

Ideal Technoplast Industries Limited stands out as a leader in the rigid plastic packaging industry, offering advanced and sustainable packaging solutions. With a strong technological foundation, a commitment to quality, and a focus on innovation, the company is well-positioned to meet the evolving needs of its customers across various sectors. Its transition from a partnership firm to a limited company marks a significant milestone, reflecting its growth and ambition in the competitive market of industrial packaging solutions.

Objects of the Ideal Technoplast Industries Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Meet Capital Expenditure; ii. General Corporate Purpose.
DRHP of Ideal Technoplast Industries Limited IPO
RHP of Ideal Technoplast Industries Limited IPO

Ideal Technoplast Industries Limited IPO Details:

Open Date: Aug 21 2024
Close Date: Aug 23 2024
Total Shares: 1,325,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 16.03 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 121 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 28 2024

Promoters And Management:

Mr. Praful Karsanbhai Vaghasiya is the Chairman and Executive Director of the company. He has got a Bachelor's degree in Commerce from BJVM College in 2000. He has been associated with the company/firm since 24th August, 2012 and since then, Mr. Praful takes care of production, sales, growth, research and development in the business and has over 12 years of experience in the Plastic Packaging Industry. Mr. Vipul Dulabhai Mendapara is the Managing Director of the company. Mr. Vipul has got a Bachelor's degree in Commerce from Sardar Patel University in 2000. Mr. Vipul has been associated with the company/firm since 24th August, 2012 and since then Mr. Vipul takes care of HR and Marketing aspects in the business and has over 12 years of experience in the Plastic Packaging Industry. Mr. Gauravbhai Chhaganbhai Gopani is the Executive Director and Chief Financial Officer of the company. Mr. Gauravbhai has got a Bachelor's degree in Commerce from Sardar Patel University in 2001. Mr. Gauravbhai has been associated with the company/firm since 01st October, 2020 and since then taking care of Accounts and quality check and he has over 4 years of experience in the Plastic Packaging Industry.

Financials of Ideal Technoplast Industries Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
11M-FY24
Revenue from Operations 569 568 1,199 2,424
Other Income 0 0.3 0.5 0.4
Total Revenue 569 568 1,200 2,425
Cost of Material Consumed 448 458 1,073 1,712
Change in Work-In-Progress -2 4 -138 -19
Employees Benefit Expenses 56 34 29 55
Other Expenses 36 40 121 277
EBITDA 31 33 115 398
OPM (%) 5.51% 5.80% 9.55% 16.43%
Depreciation & Amortisation 7 8 23 37
EBIT 25 25 91 361
Finance Cost 14 16 40 39
PBT 11 9 51 323
Tax/Deferred tax 0.8 -1 0.7 -4
PAT 10 11 51 327
NPM (%) 1.72% 1.85% 4.22% 13.47%
No.of Shares 50 50 50 50
EPS 0.19 0.21 1.01 6.53

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Ideal Technoplast Industies Limited 12 1 1.01 119.5 121 61
Mold-Tek Packaging Limited 699 67 20.04 40.1 777 2,583
Time Technoplast Limited 4,992 316 13.68 27.0 398 9,024
TPL Plastech Limited 313 20 2.54 44.5 118 920
* Note :- i. Data of "Ideal Technoplast Industies Limited" is as per FY23. ii. Rest of the company data is as per FY24.

Recommendation on Ideal Technoplast Industries Limited IPO:

1. Ideal Technoplast Industries Limited specialize in manufacturing and supplying rigid plastic packaging solutions, primarily serving industries such as paints, agro, chemicals, cosmetics, adhesives, lubricants, food, and edible oil. 2. Product and Technology They focus on producing durable, square plastic containers that are known for their ruggedness and ease of handling. The use of fully automatic machines with robotic arms and in-mould labelling technology allows them to produce containers with high precision and efficiency, minimizing human intervention and ensuring consistent quality. 3. SWOT Analysis Strengths: i. Diverse product range                                  ii. advanced manufacturing technologies iii. in-house design and printing                    iv. automated precision v. high customer retention                              v. specialization in square packaging. Weaknesses: i. Dependency on raw materials                    ii. market sensitivity. Opportunities: i. Diversification into new industries             ii. global market expansion iii. demand for customization                        iv. strategic alliances. Threats: i. Fluctuating raw material prices                  ii. intense competition iii. economic downturn                                   iv. regulatory changes. 4. Market Presence and Competition They serve both domestic and international markets, indirectly exporting through third parties and export houses. Their key competitors include Mold-Tek Packaging Limited, Hitech Corporation Limited, Innovative Tech Pack Limited, and TPL Plastic Limited. Despite intense competition, their specialization in square packaging containers and their commitment to quality and innovation have helped us maintain a strong market presence. 5. The Revenue has Increased from Rs.5.6 Crore in FY21 to Rs.12 Crores in FY23. 6. The EBITDA has Increased from 31 Lakhs in FY21 to 1 Crore in FY23. 7. The PAT has Increased from 10 Lakhs in FY21 to 51 Lakhs in FY23. 8. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 7.12, 9. Market Capitalization is 61 Crores & P/E is 16.9x based on FY24.

Lead Manager of Ideal Technoplast Industries Limited IPO:

  1. Swastika Investmart Limited

Registrar of Ideal Technoplast Industries Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Ideal Technoplast Industries Limited Plot No. 1 to 4 and 78 to 81, Block No. 572 & 572/B Madhav Industrial Estate, Vill. Olpad, Ta.Olpad, Surat - 3945 Phone: 0261-2769409 Email: cs@idealtechnoplast.com Website: http://www.idealtechnoplasts.com/

Discussion on Ideal Technoplast Industries Limited IPO:

Leave a Reply