Shivani Nyati, the Head of wealth at Swastika Investmart, indicated that potential investors should approach the IPO with caution. She remarked that although the company has demonstrated top-line growth, its profitability has been influenced by non-operational factors, including fair value adjustments. Nonetheless, she emphasized that the company’s long-term prospects are bolstered by its established market position and growth potential.
Nyati also pointed out several key risks, such as geographic concentration, potential manufacturing or quality control issues, and regulatory scrutiny. She mentioned that excluding adjusted put-call liabilities, the IPO is valued at a reasonable price-to-earnings ratio of about 28 times. Considering the company's market leadership, growth prospects, and valuation, she advised investors to adopt a cautious stance towards the IPO and to carefully evaluate the aforementioned risks before making any investment decisions.
