Archit Nuwood Industries IPO: Review, Valuation, Date & GMP

Archit Nuwood Industries IPO-Complete Overview

Archit Nuwood Industries IPO an SME IPO is a book built issue of Rs.168.48 crore by Archit Nuwood Industries Ltd. which was founded in 2017 and produces a large selection of MDF and HDF boards in addition to pre-laminated boards in many styles.

The company's product portfolio consists of:

MDF: Medium Density Fiberboard (MDF): Pre-laminated interior grade materials, also known as pre-lam; Pre-laminated exterior grade MDF; Plain exterior grade MDF; Plain interior grade MDF.

Three types of HDF: Plain High-Density Fiberboard (HDF), Pre-laminated High-Density Fiberboard (or High-Density Fiberboard), and Plain California Air Resources Board (CARB) Compliant Panels.

High-Pressure Laminate (HPL).

This new SME IPO is to be launched on 30 August 2024, and its ‘initial public offering’ will end on 03 September 2024.

Archit Nuwood Industries IPO Overview

The Rs.168.48 crore Archit Nuwood Industries Private Ltd. IPO consists of wholly a fresh issue of 62.4 lac Shares.

This SME IPO is to be listed on BSE and SME. Archit Nuwood Industries IPO price band is Rs.257 to Rs.270  for each Share.

To open a demat account and apply for the IPO, Click Here.

 

Company Financial

The company’s revenue grew by 21% and PAT increased by 74% for FYs between 31 March 2024 and 31 March 2023.Below is the synopsis of the company's financial data (Restated Standalone) for the period that concluded 31 March 2024.

• The total assets of the company are Rs.16,649.44 lac.

• The total revenue of the company is Rs.18,540.13 lac.

• The company’s PAT is Rs.3,692.53 lac.

• The company’s EBITDA is Rs.5,421.20 lac.

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Segment-wise Revenue Breakdown of Sales During The Last Three Fiscals

(Amount in lac)

 

Geography-wise Revenue Breakdown

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To invest in Archit Panels Private Limited (APPL) a wholly-owned subsidiary.

• General corporate purposes.

 

Peers of Archit Nuwood Industries Ltd. 

Evaluation

The Archit Nuwood Industries Limited share price is Rs.257 to Rs.270 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.22.57 from the last year, the resulting P/E ratio is 11.96x.

Considering the weighted EPS of Rs.17.98 for the last three years, the P/E ratio is 15.01x.Comparative Analysis With Listed Peers

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 29.31x.

In simple words, the P/E ratio of Archit Nuwood Industries IPO (11.96x), compared with the industry’s average P/E of 29.31x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Production sites that are close to sources of raw materials guarantee effective supply chain management and result in lower transportation costs.

• Relentlessly excellent products satisfy the needs of a discriminating clientele, encouraging brand adherence and favorable word-of-mouth.

• A wide range of products serves different clientele, facilitating market penetration and revenue diversification.

• A well-established reputation for excellence increases brand equity and competitiveness in the market by encouraging customer satisfaction and repeat business.

IPO’s Weaknesses

• The designs, patterns, consumer demands, and tastes of the product are constantly changing. If it is unable to satisfy these wants or preferences, it could harm the company.

• The business depends heavily on the timely acquisition of raw materials, thus any delays in this regard or the purchase of raw materials on terms that are not commercially feasible could harm its operations and business outcomes.

• The company operates throughout India, primarily Archit Nuwood Tohana is very crucial for its revenue. As such, any economic downturn or change in any of the Indian states where it now operates or hopes to operate could harm its market share or negatively impact its business.

• It operates in a competitive environment with inexpensive substitutes, fair competition, and no barriers to entry for organized and unorganized companies looking to produce laminates. These factors could harm its operations and financial situation.

• The company had a negative cash flow from its operating, investing, and financing activities in the past FYs, and sustained negative cash flow could impact its growth and business.
  
  

 

Archit Nuwood Industries IPO GMP Today

Archit Nuwood Industries IPO GMP is Rs.270 as of 29 August 2024.

IPO Timetable (Tentative)

The IPO dates are to be informed later.

 

Archit Nuwood Industries IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to offer a wholly fresh issue size of 6,24,0000 Shares (aggregating up to Rs.168.48 Cr.).

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (400 Shares) amounting to Rs.108,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (800 Shares) amounting to Rs.2,16,000.

 

Archit Nuwood Industries IPO Reservation

Promoters And Management of Archit Nuwood Industries Ltd.

• Mr. Prem Chand

• Mr.Vinod Kumar Singla

• Mr. Vineet Kumar
  
  

IPO Lead Managers

• Share India Capital Services Private Limited.

Dividend Policy

The company has not paid any dividends since incorporation.

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

Click Here to stay updated with the Upcoming IPOs.

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog. Hope you loved the IPO analysis Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.