Anubhav Plast SME IPO Review | APPLY or AVOID?
Anubhav Plast Limited started in 1987. It operates in the Industrial Manufacturing industry and provides Electric Resistance Welding (ERW) steel pipes and tubes in round and square hollow sections, as well as swaged steel tubular poles to its customers across multiple Indian states. This business is based in Kanpur Dehat. This IPO review covers the main facts of the offer. Anubhav Plast Ltd. shows steady growth, but the poor merchant banker track record remains a key point to consider for investors. The company operates with low profit margins in a highly competitive space, and its lead manager has a history of weak listings.
✅ Strengths
⚠️ Challenges
Financial Update
The company released its restated financial statements for the year ending March 31, 2025. Total revenue was ₹98.31 crore increased from ₹87.41 crore in previous year. The net profit for the same period was ₹6.00 crore increased from ₹2.08 crore in previous year. Assets increased by 33.12% compared to the previous year. (The manufacturer generates total income of ₹80.60 crore and net profit of ₹5.30 crore during the 9 month period ending December 31, 2025. Net profit margins shifted from a low of 0.85% in Fiscal 2023 to 6.11% in Fiscal 2025. This rapid margin expansion in a highly fragmented steel tube market raises sustainability concerns. This trend should be carefully studied prior to any investment.
IPO Valuation
The upper price band is ₹80. This price leads to a Price-to-Earnings (P/E) ratio of 14.68. The average P/E for the industry is -. The fixed price band requires a P/E multiple of 12.46 based on the annualised earnings forecast for Fiscal 2026. While this valuation multiple seems reasonable on paper, it is based on maintaining the recent surge in profit figures. This leaves limited safety margins given the relatively low differentiation in steel products. Consequently, the valuation appears aggressive due to its reliance on recent high profit margins.
IPO Objective
Company will use Offer proceeds to meet stated objectives:
- To fund capital expenditure requirements on new manufacturing facility for crash barriers and solar panel structures costing ₹2.20 crore
- To manage the general working capital requirements for raw material procurement costing ₹13.75 crore
- To meet general corporate purposes for the overall enterprise administration
Promoters & Lead Manager
- Onkar Nath Gupta, Vinamra Gupta, Bina Gupta and Tanvi Gupta are the promoters
- CapitalSquare Advisors Pvt. Ltd. acts as the sole lead manager to this public offer.
- The lead manager handled 5bpublic mandates during the last two fiscal periods.
- All 4 of the last 4listings opened at a discount to the offer price on the listing date.
- Bigshare Services Pvt. Ltd. functions as the official registrar to this public issue.
Peer Comparison
Below is the comparison of the company with its listed peers using data from (June 15, 2026). The prospectus shows New Malayalam and P S Raj Steels as comparable market peers. New Malayalam trades at a P/E multiple of 5.99 while P S Raj Steels trades at a P/E ratio of 36.7. These businesses operate on different product dynamics and scales so this peer table serves as an eyewash.
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (₹ per share) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|---|
| Anubhav Plast | 7.5 | 7.5 | 19 | 47.78 | Restated | ||
| Newmalayalam Steel Limited | 3.19 | 3.19 | 45 | 7.45 | 5.63 | 0.51 | Standalone |
| P S Raj Steels Limited | 9.83 | 9.83 | 86 | 40.53 | 11.41 | 4.63 | Standalone |
Financial data sourced from annual reports and stock exchange data, using restated financial statements for 2024-25. NAV per share (closing net worth divided by weighted average number of paid-up equity shares) and RoNW (net profit after tax divided by closing net worth).
IPO Review & Analyst Rating
The steel tube manufacturer has shown growing revenues recently but operates in a crowded market space. The company relies heavily on outside vendors for core processes like galvanisation, which introduces supply chain risks. The lead merchant banker features a highly poor track record with multiple discounted listings.
| Analyst Name | Recommendation |
|---|---|
| MoneyBells | Neutral / Long-Term Only |
| Choice India Advisory | Avoid / Wait-and-Watch |
| PL Capital | Cautious |
Disclaimer: The information on the site is informational only. The contents of this blog are not financial advice. You should not invest in any stock market instrument without consulting your Financial advisor.
No comments yet. Be the first to share your thoughts!