The company is involved in manufacturing, exporting, and supplying discharge and collecting electrodes and Electrostatic Precipitator (ESP) internal parts and spares.
Auto Impex & Chemicals, an ISO 9001:2015 certified company, specialises in the manufacturing of collecting electrodes, discharge electrode plate steel structures, and electrostatic precipitator (EP) components. The company manufactures a filtration device, that matches American and European standards, used to remove fine dust particles from flowing gas.
Thermax, Larsen & Toubro, KC Cottrell India Private Ltd., Isgec Heavy Engineering, Hariaksh Industries Private Ltd., etc. are some of the renowned OEM clients of Auto Impex & Chemicals.
Currently, the single manufacturing facility of Auro Impex & Chemicals is located in the Hooghly district of West Bengal.
Auro Impex & Chemicals Limited IPO Details
Auto Impex & Chemical IPO worth Rs. 27.07 crore will open on May 11, 2023. The offer is a combination of fresh issues (29.2 lakh) and an offer for sale of 5.50 lakh from the selling promoter shareholder.
Auro Impex & Chemicals Limited IPO Objective:
Should you invest in Auro Impex & Chemicals Limited?
Here are a few significant reasons to consider before investing in the IPO:
- It has a manufacturing unit built according to international standards and equipped with modern machines.
- The company sells its products through renowned OEMs and service providers and has developed long-running relationships with them.
- With rising awareness and government initiatives to reduce air pollution, the global electrostatic precipitator market is expected to grow at a 4% CAGR from 2022-2030.
Competitive Peers
There are no listed companies in India whose business is comparable with that of Auro Impex & Chemicals Ltd. and its scale of operations.
Noteworthy Highlights of Auro Impex & Chemicals Limited
- The company’s revenue from operations and profit have grown steadily in the last three fiscal years.
- The manufacturing facility had a total installed capacity of 17,500 MT as of FY23.
Auro Impex & Chemicals Company Financials
| Particulars | Year ending on March 31, 2023 (Rs. lakh) | Year ending on March 31, 2022 (Rs. lakh) |
|---|---|---|
| Revenue from Operations | 18,138.27 | 11,007.79 |
| Profit After Tax (PAT) | 557.11 | 204.59 |
| PAT Margin | 3.07% | 1.86% |
| EBITDA | 1,062.39 | 517.26 |
| EBITDA Margin | 5.86% | 4.70% |
| ROE | 4.49% | 29.43% |
Know before investing
Strengths
3The company has built long standing relationships with its customers engaged in thermal power projects, development & construction projects, etc.
It’s managed by experienced promoters and a management team.
The company has many decades of experience in the same business line.
Risks
3Investors must note that after two years of average performance, there was a sudden hike in the company’s profit in the last fiscal year. It might raise questions regarding sustainability going forward.
It depends on a few customers, and a loss of a customer will impact the company’s future profitability.
Investors should move with caution as the offer lacks transparency.
