Aeroflex Industries IPO opens. Should you subscribe to the issue?
Analysts gave a thumbs-up to the issue as it offers a favourable risk-reward ratio for long-term investors, given its unique business model, decent return ratios and margins.
«We are confident that Aeroflex Industries will deliver consistent performance and provide an excellent investment opportunity for investors with a long-term horizon,» said Profitmart Securities.
The company, which is backed by marquee investor Ashish Kacholia and others, plans to raise Rs 351 crore at the upper price band of Rs 108.
Aeroflex Industries is a market leader in the field of metallic flexible flow solutions, offering a comprehensive range of products including corrugated stainless steel hoses and interlock flexible metal hoses.
The company has grown at more than 37% revenue CAGR in the last three years, operating at more than 4.85 times asset turnover, over 20% EBITA margins and generating approximately 32% ROCE.
«Aeroflex Industries has exhibited impressive financial growth and established strong client relationships, holding a dominant market position in India. With the support of seasoned promoters, prominent HNI investors, and a forward-looking strategy, it is excellently poised for enduring success within the burgeoning flexible flow solutions sector,» said AUM Capital.
The IPO, with a face value of Rs 2 per equity, is priced in the range of Rs 102-108.
