Rosarri Biotech IPO: Apply or not? Best 6 points

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Rosarri Biotech IPO

Rosarri Biotech IPO: This is a really good pick and worth holding. As I don’t see anything wrong with fundamental here or can book gains on the listing, details are mentioned as below

Rosarri Biotech History

It was founded in 2003 as a partnership firm in the name of Rossari Labtech by Mr. Edward Walter Menezes, and Mr. Sunil Srinivasan Chari, who are both career-technocrats cumulatively having over 45 years of experience in the specialty chemicals industry. It was further renamed to Rossari Biotech Limited and converted into a company in 2009.

What does the company do?

Company is engaged in mainly three businesses
  1. Home, personal care and performance chemicals
  2. Textile specialty chemicals
  3. Animal health and nutrition.

 

Who is in a peer group

The company has good peer groups such as Aarti Industries, Vinati Organics, Atul, Galaxy Surfactants with customers as HUL, IFB, and Arvind. The PE ratio which is expected by rosarri biotech is 31 as of now
The business of the company is unique and mainly diversified. So good for growth as well. Especially home and personal care sector will fetch good returns in upcoming months or years as it’s a promising sector.

Past Revenue and profit

Rossari company finacials

Total Assets of company, total revenue and total profit after tax has been increasing steadily past 3 years ..which is a very good sign for long term investment
The business of the company is really huge in 17 countries and also 2030+ different products with two R&D facilities. (Silvassa and Mumbai)
Total Revenue of company from 2605M to 6038M in just 3 years and if we talk about profit it went from 142.8M to 650+M in 2020. So the impact of Corona has not been big here ..in spite of that company is making really good profits

Is it worth Applying in COVID 19 Impact

The company also has production in  disinfectants & sanitizers which actually went high for the company, but demand in other sector witnessed the impact
There is a dependency on textiles through a reduced lot from 70+ but still more than 40% from last year ..so The impact of COVID 19 will be reduced.
Profit to earning ratio is 31 ..whereas sector PE is 18.84 so little overvalued still a fair deal because of the very good valuation of the company. Past consistent profits, big business in 17 countries, diversified sectors justifies PE valuation.

Rosarri Biotech IPO details

Rossari ipo details

My personal view on Rosarri Biotech IPO

The IPO date is 13 to 15 July and 423 to 425 is IPO price.
Now if we look at the grey market expecting a surge in Rosarri Biotech IPO from 50-100₹ per share.
So now for long term investment, this is a really good pick and worth holding. As I don’t see anything wrong with fundamental here.
If you have a short term view still you can book gain on listing and go safe. but believe me, such stocks are worth holding for long term gain

Rosarri Biotech IPO tentative dates

Rossari ipo tentative dates


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