Technocrats Plasma Systems IPO is a risky option due to a sudden sales surge and cash flow concerns, suggesting a hold or wait-and-watch approach.
Source Post
Technocrats Plasma Systems IPO | Analysis | GMP | Review
This video analyzes the Technocrats Plasma Systems IPO, highlighting its business of manufacturing automation and non-automation machines like welding and plasma cutting. The IPO is open from August 14-18, with a share price of ₹132 and a company valuation of ₹231 crore. While the PE ratio is competitive at 17 compared to peers, the sudden surge in sales from ₹6 crore to ₹131 crore in two years, coupled with rising inventory and trade receivables, raises concerns about cash flow and presents a significant red flag. The promoter's stake of 64% is also considered slightly low. The creator suggests it's a risky option, advising caution and waiting for further clarity unless one is willing to take on significant risk.
Linked Mentions
Tickers discussed in this post
Linked Signals