Shakti Polytarp
What they do: The company engages in trading and manufacturing activities, dealing with plastic products, polymers, and metal casting. This diversified business model supports its revenue growth.
By IPO Milega Research · Published · Updated
Analysis score 5.8 +1 for 49.22x QIB subscription
The company has shown a strong revenue growth with a 3-year CAGR of 45.5% and a consistent increase in net profit over the same period.
- GMP (unofficial)
- +10.17%
- ₹6 a share
- Subscribed
- 11.87x
- Total
- Retail odds
- 24%
- 1 in 4.1
GMP is an unofficial grey market indication.
- Price band
- ₹56-59
- Lot size
- 4000 shares
- Min. investment
- ₹2,36,000
- Issue size
- 26.93 Cr.
- Open15 Sept 2026
- Close17 Sept 2026
- Allotment18 Sept 2026
- Listing22 Sept 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 49.22x
- NII
- 5.43x
- Retail
- 4.12x
₹65 (+10.17%)
GMP trend
Unofficial grey market quotes, times in IST
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials7.0
- Performance7.0
- Flexibility6.0
- Timing5.0
- Risk4.0
The approximate gains potential is based on the company's strong fundamentals, including high RoNW and ROCE, significant revenue growth, and strategic market positioning. However, the absence of GMP data limits the precision of this estimate. The company's high debt-equity ratio and liquidity challenges are potential constraints on gains.
Strengths3
- Highest Return on Net Worth among peers at 44.06%.
- Strong backward linkages with major petrochemical companies.
- Diverse product portfolio catering to multiple industries.
Concerns5
- High customer concentration with top customer contributing 41.16% of revenue.
- Negative cash flows from operations, impacting liquidity.
- Dependency on suppliers for raw materials.
- Potential penalties for regulatory non-compliance.
- Impact of environmental regulations on operations.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,36,0002 lots, 4000 shares
- Retail Maximum2,36,0002 lots, 4000 shares
- S-HNI Minimum3,54,0003 lots, 6,000 shares
- S-HNI Maximum9,44,0008 lots, 16,000 shares
- B-HNI Minimum10,62,0009 lots, 18,000 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 4000 | 2,36,000 |
| Retail Maximum | 2 | 4000 | 2,36,000 |
| S-HNI Minimum | 3 | 6,000 | 3,54,000 |
| S-HNI Maximum | 8 | 16,000 | 9,44,000 |
| B-HNI Minimum | 9 | 18,000 | 10,62,000 |
Timing
5.0/10The timing of the IPO appears to be moderately favorable. While the company is entering the market amidst some economic and political uncertainties, the SME platform of BSE may provide a suitable environment for raising capital. However, the broader market conditions and geopolitical risks could pose challenges to achieving optimal valuation and investor interest.
- Time to market
- The company's decision to list on the SME platform of BSE suggests a strategic approach to tap into a niche market segment. Despite the prevailing uncertainties, the IPO size of 26.93 Cr. is relatively modest, which may mitigate some risks associated with larger offerings. The timing could be advantageous if the company can leverage its market position and growth prospects effectively.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 6.0
- Listing on
- BSE SME
Key milestones
- 15 Sept 2026IPO Opens
- 17 Sept 2026IPO Closes
- 18 Sept 2026Basis of Allotment
- 21 Sept 2026Refunds Initiated
- 21 Sept 2026Credit to Demat Account
- 22 Sept 2026Listing Date
Financials
7.0/10- Revenue
- ₹216 Cr
- +29.8%
- Profit after tax
- ₹10.06 Cr
- +102.4%
- Net margin
- 4.7%
- +1.7 pts
- Assets
- ₹110 Cr
- +54.3%
- Return on equity
- 44.04%
- Debt to equity
- 2.60
- Revenue CAGR
- 45.5%
- ROCE
- 17.87%
- Return on net worth
- 44.04%
- NAV per share (₹)
- 22.18
Financial performance trend
Amount ₹ in croresThe company has shown a strong revenue growth with a 3-year CAGR of 45.5% and a consistent increase in net profit over the same period. The profit margin is moderate at 2.48%. The company's total assets are substantial, but liabilities are not specified, preventing a debt-to-equity ratio calculation. Financial ratios like current and quick ratios are not provided, limiting liquidity analysis.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks2
- Market risks1
- Operational risks2
- Regulatory risks2
Shakti Polytarp faces significant financial and operational risks due to customer concentration, negative cash flows, and regulatory dependencies.
How the company offsets these
Diversifying customer base and improving cash flow management can mitigate risks.
Financial risks2
- Negative cash flows from operations, impacting liquidity.
- Secured loans with collateral and personal guarantees.
Market risks1
- High customer concentration with top customer contributing 41.16% of revenue.
Operational risks2
- Dependency on suppliers for raw materials.
- Reliance on key personnel and potential machinery procurement delays.
Regulatory risks2
- Potential penalties for regulatory non-compliance.
- Impact of environmental regulations on operations.
Performance
7.0/10Shakti Polytarp Limited operates in the flexible packaging industry, focusing on tarpaulin production. The company has shown strong return indicators, with a high Return on Net Worth (RoNW) of 44.06% and a Return on Capital Employed (ROCE) of 20.62%. However, it operates at a smaller scale compared to peers and has a high debt-equity ratio of 2.60, indicating reliance on borrowings. The company's EBITDA margin is 8.94%, which is competitive but below some peers. It faces liquidity challenges with a current ratio of 0.99, lower than peers. The company benefits from strong backward linkages with domestic petrochemical majors and has a diverse product portfolio. It is positioned for growth due to rising demand in agriculture, construction, and logistics sectors, supported by government initiatives and export opportunities.
- Historical growth
- The company has shown significant revenue growth from INR 6,201.12 lakh in FY2024 to INR 21,564.74 lakh in FY2026., High
- Market comparison
- Shakti Polytarp operates at a smaller scale compared to peers like Time Technoplast and TPL Plastech but has a higher RoNW and competitive EBITDA margins.
- Future potential
- The tarpaulin industry is expected to grow above the global average of 4.96%, driven by demand in agriculture, construction, and logistics.
- Operational consistency
- The company has shown rapid revenue growth but with fluctuations in revenue composition and high reliance on a few customers.
- Experience
- The management team, led by promoters with 9 to 17 years of experience, has been instrumental in driving business growth.
- Track record
- The management has successfully expanded operations and improved profitability.
Key achievements
- 01Highest Return on Net Worth among peers at 44.06%.
- 02Strong backward linkages with major petrochemical companies.
- 03Diverse product portfolio catering to multiple industries.
Flexibility
6.0/10The company has a strong presence in critical sectors like agriculture, logistics, and construction, and benefits from government initiatives and export growth. However, it faces pricing pressure due to a fragmented industry structure.
The company is expanding its manufacturing capacity and investing in new machinery, but current capacity utilization is low at 48.66%. It faces challenges in automation and relies on semi-skilled labor, affecting productivity.
Shakti Polytarp Limited demonstrates moderate flexibility and adaptability, with strengths in product diversification and market adaptability, but faces challenges in financial stability and operational agility.
- Product diversification
- The company offers a broad product spectrum, including tarpaulins, geotextiles, pond liners, and FIBCs, catering to diverse industries such as agriculture, construction, and logistics.
- Future adaptability
- The company is well-positioned to benefit from India's macroeconomic expansion and increasing demand in agriculture, construction, and logistics. It is also focusing on sustainable product innovation and expanding its export market.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.