The Standard Glass Lining Technology IPO has captured significant investor interest since its launch on 06 January 2025. With a total issue size of INR 410 crore, this IPO has drawn attention due to its robust financial performance and promising growth trajectory. In this article, we explore the IPO specifics and present Standard Glass Lining analyst views to help investors make informed decisions.
Standard Glass Lining IPO Overview
The Standard Glass Lining IPO features a fresh issue of INR 210 crore and an Offer for Sale (OFS) of INR 200 crore by promoters. The fresh issue aims to fund debt repayment, capital expenditures, and strategic acquisitions, positioning the company for future expansion. The price band for the IPO is set between INR 133 – 140 per share, translating to an approximate market capitalization of INR 2,793 crore and a dilution of about 15%.
Financial Performance
Standard Glass Lining has demonstrated impressive financial performance, reporting revenue of INR 543.6 crore and a net profit of INR 60 crore for FY 2024. The company’s return on capital employed (ROCE) stands at a strong 25.49%, reinforcing its operational efficiency. However, analysts have highlighted a debt-to-equity ratio of 0.32x as a potential concern, albeit manageable given the firm’s consistent profitability.
Standard Glass Lining Analyst Views: Recommendations and Insights
Swastika Investmart: Positive Outlook
Ms Anubhuti Mishra, an analyst at Swastika Investmart, views the Standard Glass Lining IPO favourably. She underscores the company’s consistent revenue growth and profitability, positioning it as one of India’s top specialized engineering equipment manufacturers for the pharmaceutical and chemical sectors.
Mishra states, “The Standard Glass Lining IPO offers a compelling opportunity for investors, given the company’s potential for listing gains and long-term value appreciation. Its strategic growth plans, including acquisitions and capacity expansion, strengthen its prospects.”
She also points out certain risks:
- Reliance on a limited number of suppliers.
- Historical negative cash flow from operations.
- Absence of long-term contracts with key customers.
- Under-utilization of production lines.
Despite these challenges, Mishra maintains a positive recommendation, citing the company’s innovative product offerings and strong market presence.
SPTulsian Investment Advisors: Bullish Long-Term
Echoing similar sentiments, Ms Geetanjali Kedia from SPTulsian Investment Advisors provides an optimistic assessment of the Standard Glass Lining IPO. Kedia highlights the company’s focus on manufacturing glass-lined equipment for pharmaceuticals and chemicals, with pharmaceuticals contributing 80% of total revenue.
Kedia remarks, “Standard Glass Lining’s strategic partnerships with global firms such as HHV Pumps and Asahi Glassplant bolster its market position and financial stability.”
She projects revenue of approximately INR 650 crore for FY25, with an estimated earnings per share (EPS) of INR 4.4. The resulting price-to-earnings (P/E) ratio positions the IPO as an attractive investment.
The following analyst insights highlight the common trends in brokerage house recommendations for the upcoming IPO. Here’s a more extensive list of broker suggestions:
Adroit Financial – Subscribe
Axis Capital – Not rated
BP Wealth – Subscribe
Capital Market – Subscribe
Canara Bank Securities – Subscribe
Elite Wealth – Apply
Geojit – Subscribe
GEPL Capital – Subscribe
Hem Securities – Subscribe
Indsec Securities – Subscribe
Jainam Broking – Subscribe for listing gain
KR Choksey – Subscribe
Marwadi Financial – Subscribe
Nirmal Bang – Subscribe
Samco Securities – Not rated
SBI Securities – Subscribe for long term
SMC Global – 2/5
SMIFS – Subscribe
Ventura Securities – Subscribe
Why Invest? Analysts Weigh Pros and Cons
Both analysts highlight the Standard Glass Lining IPO’s potential for substantial gains, supported by:
- Strong financial performance and profitability.
- Growth opportunities through acquisitions and capacity expansion.
- Established partnerships and a dominant presence in high-demand sectors.
However, investors should carefully assess risks such as working capital management issues, inventory buildup, and dependency on specific suppliers. The company’s ability to scale operations and manage resources efficiently will be critical to sustaining growth.
Conclusion
The Standard Glass Lining IPO stands out as a promising opportunity for investors seeking both short-term listing gains and long-term growth prospects. With favourable financial metrics, strategic partnerships, and a strong market presence, the company appears well-positioned for expansion.
Analyst views indicate confidence in the company’s potential despite some risks, making this IPO a compelling consideration for investors. As the Standard Glass Lining IPO progresses, it remains essential to monitor market performance and evaluate developments closely. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
