In terms of valuations, the pre-issue P/E works out to 16.0x 1QFY2020 annualized earnings (at the upper end of the issue price band), which is lower compared to PPFL’s peers like Finolex Ind. and Supreme Ind. (trading at 23.3x and 40.9x of its 1QFY20 annualized earnings, respectively). Further, PPFL has highest ROE of 20.8% among peers. Hence, considering the above positive factors, we recommend SUBSCRIBE on the issue with a long-term horizon.

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