Companies like RFBL Flexi Pack always ensure to provide quality and customized packaging solutions in order to meet their clients’ diversified packaging requirements. Are you interested in investing in a company that offers high-quality multilayer packaging solutions? Then do not forget to invest in RFBL FlexiPack starting on May 12.
As an investor, it can be very challenging to decide whether the RFBL Flexi Pack IPO is a good or bad investment. Not anymore, as in this blog, we will provide you with all the necessary details related to the RFBL Flexi Pack IPO to help you decide whether you should Apply or Not. Read on to know the IPO risks, strengths, valuation, financial details, and expert opinion to make your investment decision better.
RFBL Flexi Pack IPO Review
| Reviewer | Recommendation |
| IPO Watch |
Strengths:
- RFBL flexipack is known to provide quality products. Its products go through strict quality assurance to ensure high-quality and durable packaging solutions.
- The firm’s manufacturing facility is located at Dhandha, Himatnagar, close to Rajasthan, a region with the required demand for flexible packaging, making it an advantage for them.
- The company is known to build long-term relationships with its customers, with 99% of its revenue coming from repeat customers due to its good quality, reliable, and exceptional products.
- The firm manufactures its own products, which allows it to take full control of its product quality, on-time delivery, control inventory better, reduce costs, and maintain quality products.
Weaknesses:
- About 99% of the revenue comes from the top 10 customers. Losing any of these top customers can negatively impact the business and financial conditions.
- Supply of Limited, delayed, or poor-quality materials from its suppliers, or price fluctuations, can negatively impact the overall business and cash flow.
- Changes in technology and material preferences force them to use alternative packaging materials, reducing the demand for the existing materials, which can adversely impact the business and financials.
- Insufficient use or failure to use its expanded manufacturing facility properly may negatively affect the business, future growth, and financial performance.
Promoters & Track Records, if any
- Mr. Kunjit Maheshbhai Patel, aged 41 years, is the promoter and Managing Director of our company. He holds 28,09,600 of Equity shares, representing 61.26% of Pre-Offer equity capital.
- Fettech Commercial Enterprises Private Limited is one of the promoters. It holds 7,63,079 equity shares, representing 16.64% of Pre-Offer equity capital.
Peer Comparison with the Company
| Name of the Company | Face Value(₹) | Basic EPS (₹) | Diluted EPS(₹) | RONW (%) | P/E Ratio | NAV(₹) |
| RFBL Flexi Pack Service | 10 | 5.13 | 5.13 | 60.18% | 9.74x | 11.08 |
| Uma Converter Limited | 10 | 1.33 | 1.33 | 3.66% | 14.85x | 37.06 |
| Sabar Flex India Limited | 10 | 0.37 | 0.28 | 2.12% | 13.92x | 17.71 |
Industry Peer Group P/E ratio
The industry P/E ratio ranges from 13.92 times to 14.85 times, with Uma Converter Limited having the highest P/E ratio and Sabar Flex India Limited having the lowest, while the industry average P/E stands at 14.38 times.
Expansion
- The proceeds of ₹12.41 crore will be used to meet the capital expenditure requirements.
- A fund of ₹17.76 crore will be utilized towards working capital requirements.
- Lastly, the remaining funds will be utilized towards general corporate purposes.
RFBL Flexi Pack IPO — Should You Apply or Not?
Every business wants to enhance its brand visibility, while increasing brand visibility mostly depends on product quality; many forget that to attract customers, the product packaging matters the most.
If you also want to elevate your brand visibility, you need to invest in the RFBL Flexi Pack IPO. A company that manufactures innovative, customised and visual appeling flexible packaging solutions that will enhance your product trustworthiness, shelf life, and brand visibility. They are not just doing business; they are making sure to offer eco-friendly packaging solutions that meet the strict quality standards.
Talking about its financials, since FY24, its revenue and profit have been growing, reflecting improving business performance. Coming to its valuations, the RFBL Flexi Pack IPO is valued at a P/E of 9.74x. Compared to the industry P/E, the IPO seems to be fairly/attractively priced. As of May 11, the RFBL Flexi Pack IPO GMP is ₹0.
Currently, the company has been using only using 52% of its manufacturing facility of 5,040 MTPA, meaning the remaining 48% of the facility is still unused. But the shocking part is that the firm is planning to add another 5840 mtpa capacity, on which investors may raise questions about the need for such expansion when there is almost 50% of capacity unused.
My Verdict: Investors with industry knowledge who want to take risks can invest in this IPO for the medium term. While a cautious investor must analyze the company, and if GMP and subscription stay in support can apply for the IPO.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
