Aether Industries Limited IPO Message Board (Page 25)

I don't know how it will perform on listing but it's pure portfolio stock. Very interesting chemistry and they have complex chemistry of 8 chain which is very very tough to replicate.

This company is into high value chemical and they have marquee clients like Divi's Lab, Dr Reddy, Aarti Drugs etc (which are themselves multibagger stocks) and well established foreign players and this company has very long relationship >5 years with these customers.

Company is in exponential growth mode and significant capex plan going in the company which will excellerate its topline. If you see last 3.5 years data it clearly shows that margin is consistently improving. Nothing could be better than rising topline and improving margin.

On valuation front company is asking P/E multiple of 65 which is in line with their peers and Promoter didn't show greed as Pre-IPO placement were done in Nov-21 and May-22 at upper end of price band i.e Rs 642.

I would keep this company on 2nd preference after Clean science.
Clean science is definitely very superior company but it is trading at P/E of 82 and this company is coming at P/E of 65 because Clean has better margin and financial ratios. Post IPO margin of Ather will also improve as this company will be debt free post IPO.

Disclaimer: I have Clean science and will accumulate Ather too(few lot in IPO and add more post listing if I get at lower price)
I have thoroughly gone through RHP before making my mind.

@ Jetha Lal
Thank you very much Sir for your deep and complete analysis, particularly, clear and precise comparison with recently listed clean science.
🙏🙏🙏

@ipo share ji
Thank you for kind appreciation 🙏

Aggressively Priced ipo stay away. Buy after discount listing 😎

Can't say aggressively priced..check the CAGR of topline of the last 3 years. It's more than 40 percentage

QIB showing their interest in first day itself.
Looks like tough to get allotment.

Looking good. Worth considering. Risk appears minimal. May go for sHNI/bHNI subject to last day subscription. Retail surely.

Guys website is not open for Aether look like very bad

https://aether.co.in/
It's working absolutely fine.

Team Chittorgarh,
Nice to see new improvements like '+Read More' option instead of scrolling for bigger messages and 'Reload subscription'.
Thanks for implementing the suggestions from forum members while giving an excellent platform for the members to discuss, learn from other members and share opinions.

Some fake experts used to write big essays here that's why changes made for good 👍

Kudos to Admin for constant improvement.
Much appreciation for making user friendly and insightful forum 👏🙌

Good to see QIB's participation at least on first day itself.
Company is good, Financials look great as well. Promotors background is also good.
Only question is the valuation. I can remember clean science ipo came last year in July, and was listed at 98% premium.
Sadly, we can't expect the same in this market. The current valuation of aether industries give a very little chance for any gains in the listing process.

So, it's a good stock to have but one can buy after listing as well considering the current market sentiment.
Also to remember, stock will be listed in June. And RBI's rate hike is also expected in June. There's a lot of uncertainty in my opinion.
Due to these reasons only I will avoid the ipo. But I will invest in the stock after listing.
Please correct me if I'm wrong somewhere. I'm open to hear a different view.

Campus, Rainbow, Nykaa, Easy Trip, Latent - All coming up with results this week. Had purchased Zomato @ 56.5 before results, now enjoying the ride after results. Hope to see bumper results from the above pack. Fasten you seat belts.

Its very good company, apply blindly

Blindly kaise lgaye bhaiji

@Priyansh, you can see today why I told to apply blindly

Sorry GMP 20

GMP 25

Will surprise to some extent like Ami Organic did on listing

Can apply for listening gain

Remember my words IPO of chemical industry never disappoint see clean science IPO price was 900 it is much cheaper this is not the time that you will get 30% returns in IPL this time you keep these IPS in your locker and see the miracle after 6 months in share market nobody will give you the right decision so use your mind study the company and it's financial grounds with future market of its product

#Anchorbook
Goldman Sachs, Nomura and Axis are good name:)

Pre-IPO allotment:
27/11/2021 :- 16,07,160 Qty @ Rs 642
Major allottee - Qty :-
1. India Acorn Fund Ltd - 3,18,820
2. Ashoka India - 3,18,820
3.IIFL Special Opportunities Fund- 6,22,085

05/05/2022:- 20,24,921Qty @Rs 642
Major allottee- Qty :-
1. India Acorn Fund - 1,97,819
2. Ashoka India Equity - 1,13,707
3. IIFL Special Opportunities - 3,11,526
4. SBI Mutual Fund - 9,03,427
(SBI Magnum global, Contra, Healthcare)

Review and Recommendation of Ather Industries Limited IPO by InvestorZone is 4/10

1. Company has grown its top-line at a CAGR of 43% in the last 4 years. Excellent Growth.
2. PAT too has grown handsomely from 23 Crores in FY19 to 110 Crores in FY22(E).
3. FY22 estimated EPS on post-issue equity works out to Rs 9. At the upper price band of Rs 642, P/E works out to 72. Which looks very high in the current market conditions.
4. In FY2021, Aether Industries OPM and ROE stood at 24.9% and 40.8% respectively, compared to 55.6% and 45% for Clean Science and Technology, 34.2% and 16.1% for Navin Fluorine International, 39.7% and 19.1% for Vinati Organics, 25.1% and 18.6% for PI Industries and 19% and 17.8% for Fine Organic Industries, respectively

Raw Materials :-
The raw materials we use in our manufacturing process are primarily sourced from third party suppliers globally and in India.
Cost of materials consumed as a percentage of our revenue from operations was 48.55%, 51.28%, 51.74% and 54.47%, respectively(clear sign of margin improvement) for Dec'21, FY21,FY20,FY19 respectively.
Raw materials include crude oil derivatives(little concern due to volatile crude price in geopolitical crisis)such as phenol and other commodities such as hydrogen, ethylene oxide and Isobutylene gas.

Reliance from China has been as follows:
Fiscal 2019: 25.44% of overall purchases;
Fiscal 2020: 32.10% of overall purchases;
Fiscal 2021: 32.48% of overall purchases; and
Up to December 31, 2021: 17.46% of overall purchases.

The prices of our raw materials are based on, or linked to, the international prices of such raw material and the variations are typically passed on to the customer. The company usually do not enter into long-term supply contracts with any of raw material suppliers and typically
source raw materials from third-party suppliers under contracts of shorter period or the open market. The prices of key raw materials globally have been volatile and increases in the prices of these materials have an impact on cost of production.

The company exports products to more than 18 countries. Some of the key geographies to which they export products include Italy, Spain, Germany and the United States.
During the nine months ended December 31, 2021, Fiscal 2021, Fiscal 2020 and Fiscal 2019, sales from exports (excluding deemed exports), as a percentage of revenue from operations were 48.87%, 50.65%, 42.94% and 45.64%,
respectively.

Geographic Split of Revenue from Operations :-
The table set forth below provides geographic split of our revenue from operations and as a percentage of revenue from operations in
the nine months ended December 31, 2021 and Fiscal 2021, Fiscal 2020 and Fiscal 2019.

Avoid to Aether Industries: Arihant Capital

https://www.moneycontrol.com/news/business/stocks/avoid-to-aether-industries-arihant-capital-8559761.html

Customers include more than 160 multinational, global, regional and local companies. As of March 31, 2022, they sold products to 34 global customers in 18 countries and to 154 domestic customers. Customers include a rich collection of leading domestic and international multinational companies.

Certain Redflags: For Dec'21 and FY21:-✓Largest customer contributed approximately 13.52% and 19.38%, respectively;
✓Top 10 customers contributed approximately 55.76% and 56.23%, respectively;
✓Top 20 customers contributed 72.93% and 73.50%, respectively.

There is some revenue concentration risk but they enjoy relationships in excess of 5 years with 7 out of top ten customers. Long-term relationships and ongoing active engagements with customers also allow to plan capital expenditure, enhance ability to benefit from increasing economies of scale with stronger purchasing power for raw materials and a lower cost base.