Premium Plast Limited IPO Message Board (Page 2)

Skipped!

Good chances of allotment

Last day apply karne ke bad gmp down kyon hota hai

LM record is poor. 85% underwriting is with the MM which also has limited track and not so promising. Moreover anchors could not be arranged leaving the QIB portion mere 10% despite being a book built issue ?!! Turbulent markets further add to these woes. Post ipo promoter holding is around 69%.

Co. operates in plastic components especially for automotive sector (may not be treated well being a auto proxy in the current market sentiments); have been in business for over 29 years from 1995. 1st gen but experienced promoter. Main operations are in injection moulding and blow moulding with over 600 components in their fleet that pertain to commercial auto vehciles for under the hood, exterior, interior parts.

Commercial vehicle is main focus. Volvo- Eicher is major tie-up (around 80% revenues from single client). Others are Tafe, Varroc, Zf Automotive, Hettich furniture. Also has Bharat Benz tie up at small scale. No aim to go into passenger vehicle. Plans to enter into bigger components like grills, fenders, mudguards. Engineering bushing is a prospect (engineering plastics with moulding and machining) in coming 6 months alongwith EV parts. Capacity expansion is to be done in existing land (shed creation) as space for installing more machines is ample. Starts in 4 months from now and full execution continues till 2 yrs ahead. (No mention of what the total capacity will be after this capex). FY24 and Q1 FY25 focus has been on big ticket products, efficient resource management adding to PAT margins.Top line is slow due to deferred auto projects also visible in increased inventory which should be gradually reduced. 20% growth expected YoY for which orders already available. Current capacity is 1975 MTPA, utilised for 75%. 85% revenues from automotive parts at 3 major locations (1 in Vasai and 2 Pithampur). Client concentration is high and a persisting issue with top 10 customers cater to 98%. Additional 25 cr revenues is expected from partnership with CVG India over next 2 years.

Out of IPO proceeds 16.5 cr are for erecting new shed and machinery. 1 cr for Solar panels to save power cost (almost 50% reduction claimed by mgmt in power costs). Additional 2.23 cr is for repayment of borrowings. They have ventured into supplying connectors for solar panels under the brand name Sunconnect, optimum results for which is visible by FY26.

There are some delays in corporate filings and governance is not upto the mark. IPO price is near 19 P/E on trailing 12 months data. Difficult at this stage to annualise the Q1 FY25 figures when growth other than Q1 has been lower. Peers shown are Varroc & Uno Minda which are just not comparable. Still, ideal range for the type of this business should be 25 - 30 P/E.

The work done by LM and the way they promote their P/E with the non sensical peers mentioned is a big worry. Growth is not robust outright. Short term sentiment is slightly positive given how well the existing business is run so far. Medium term depends on post listing execution relative to capex being done

Nicely explained @MuStrFc

Thanks for the detailed review.

Surprised, retailers want 30% discount.

Senior Sirs,

I have funds for only Two SMEs in Retail in Single account, pls advise which TWO I should select out of the below Four closing in this week??

1. Premium Plast
2. OBSC Perfection
3. United Heat Transfer
4. Danish Power

Thanks in advance.

@Gopal Nitika. Thanks for the Guidance.

Will wait for the suggestion from other Senios and then take a call

Danish Power looks good.
All others are ok ok..OBSC Perfection first & Premium Plast second option can be considered.
Time is there..check the QIB subs and market sentiment and then apply on the last day.

​@MuStrFc If you have studied this IPO, please share your analysis!

How come QIB is subscribed exactly 1 time and not changing further.
Kucha to Gadbad hai.

Conclusion can be Appears MANIPULATED & RISKY ??

​@VKK Investor That was already known from start. Contains both of those elements.

Hum to apply karenge aur Primium pe exite hoge 😅

Clear Avoid because Registrar is Bigshare Service Pvt Ltd, very bad experience with Bigshare never ever got any allotment from Bigshare

DD Review is May Apply 😅

Will Premium plast give any premium(on listing)? May be atleast, name PREMIUM will ever exist. 😂 😂

This LM's previous issues have +35% premium & listed/CMP at -35%.

By this formula & currrent market situation , premium of premium should be at least 70% else other IPOs are there so nothing to worry to kick 1 of the IPOs.

20-25% premium is not enough for Khandwala

Beware
Again Khandwala
Again 10% QIB only
Khandwala manipulated QIB portion in Phoenix also which listed in discount

​@IEC  Bhai Khandwala hai Khandelwal nhi .... khandelwal's ko kyo jod rhe ho iske saath :)

3rd back 2 back discount closing for khandwala

Agreed last 4 issues handeled by LM has destroyed the wealth of investors substatntially..
stay away

#Keep applying & Happy Investing#

LM's last four issues are running massive -30%+ BIG AVOID!

Aa gaya new plasto diwali offer maza lo.😅😅😅