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RISHABH INSTRUMENTS LIMITED -- IPO WRITE UP
For Long Term Investor
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Price Brand Rs. 418- 441
Issue Details:
Objects of the Issue:
Company Profile:
✓ Incorporated in 1982, Rishabh Instruments Limited is engaged
in the business of manufacturing, design, and development of
Test and Measuring Instruments and Industrial Control
Products.
✓ The company provides cost-effective solutions to measure,
control, record, analyze, and optimize energy and processes
through an array of products. It also provides complete
aluminum high-pressure die-casting solutions for customers
requiring close tolerance fabrication (such as automotive
compressor manufacturers and automation high precision
flow meters manufacturers), machining, and finishing of
precision components.
✓ Rishabh Instruments has 4 segments: (a) electrical automation
devices; (b) metering, control, and protection devices; (c)
portable test and measuring instruments; and (d) solar string
inverters.
✓ The company has 3 manufacturing units and more than 270
dealers across the globe, reaching 70+ countries and 150+
dealers across India covering every state.
Concerns:
✓ Our business is dependent and will continue to depend on our
manufacturing facilities, and we are subject to certain risks in
our manufacturing process.
✓ Any slowdown or shutdown in our manufacturing operations
could have an adverse effect on our business, financial
condition and results of operations.
Valuations:
For FY23, the EPS for the company is 12.84 & book value per
share is 136. Hence, P/E & P/B ratio at higher end of the band is
34.34 & 3.24 respectively. Hence, at the higher band, the
valuation is at premium in comparison to its peer.
I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.
I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.
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