1. At a Glance
Sellowrap is dropping a ₹30.28 Cr book-built IPO like it’s hot glue on automotive parts. With a price band of ₹79–₹83 and minimum retail investment of ₹2.65 lakh (yeah, you read that right), this SME listing screams “only serious wrappers allowed.” They make plastic parts, foam stickers, and some decent EBITDA margins.
2. Introduction with Hook
Imagine a wedding decorator who also moonlights as an auto-parts dealer. That’s Sellowrap Industries. They’ve been sticking, sealing, moulding, and foaming since 1983 — and finally decided to take the SME plunge in 2025. With 17% revenue growth and 68% PAT growth YoY, this company is suddenly acting like it discovered caffeine.
Stats worth sticking to your screen:
- FY25 Revenue: ₹163.31 Cr (up from ₹139 Cr)
- FY25 PAT: ₹9.97 Cr (a glow-up from ₹5.95 Cr)
3. Business Model (WTF Do They Even Do?)
Basically, they make all the things you ignore in your car — foam stickers, labels, injection-moulded bits, EPP, PU-foam moulded parts — the unsung heroes of your dashboard.
Their clients? Marquee OEMs. Think of it like being the supplier who makes Iron Man’s elbow pad while he’s off saving the world. Unsexy? Yes. Profitable? Potentially.
They operate 4 units across Gurugram, Pune, Kancheepuram & Ranipet — a PAN-India jugalbandi of plastic productivity.
4. Financials Overview
Here’s where it gets juicy — and not like that suspicious factory canteen juice.
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 133.43 | 139.09 | 163.31 |
| EBITDA | 8.81 | 14.72 | 22.32 |
| PAT | 2.86 | 5.95 | 9.97 |
| Net Worth | 27.02 | 32.96 | 46.93 |
| Total Borrowing | 30.02 | 31.69 | 38.00 |
Comments:
- Revenue CAGR: 10.7% (meh)
- PAT CAGR: 78.7% (somebody found margin discipline!)
- Margins are now tighter than Gen Z’s fashion sense.
5. Valuation
Fair Value Range: ₹65 – ₹75
- Post-IPO P/E: ~11.4x
- EV/EBITDA (FY25): Approx. 6.4x
Comparison:
- Industry SME comps trade ~10–12x.
- You’re paying 1.7x P/B for a foam-and-plastic empire.
If you’re the kind of person who buys ₹80 popcorn at multiplexes, then ₹83/share for moulded parts isn’t a stretch.
6. What’s Cooking – News, Triggers, Drama
- IPO is 100% fresh issue — no one’s cashing out. Brownie points.
- Capital is being pumped into machinery and working capital. Translation: “We’re scaling up, bro.”
- No cut-off bidding allowed — because SME IPOs like to keep things spicy.
- Global exports to the UK, Brazil, Germany. Because foam is universal.
Also, the issue’s priced in a way that retail has to cough up ₹2.65 lakh minimum. So yes, this is not for weak wallets.
7. Balance Sheet
| Item (₹ Cr) | FY25 |
|---|---|
| Total Assets | 143.02 |
| Net Worth | 46.93 |
| Total Debt | 38.00 |
| Reserves & Surplus | 43.43 |
| D/E Ratio | 0.81 |
Balance sheet commentary:
- Not Titanic-level debt, but yeah, keep that lifeboat nearby.
- Net worth improving faster than your New Year’s resolutions crash.
8. Cash Flow – Sab Number Game Hai
No exact CF table in RHP, but based on financials:
- Operating cash flow likely improved with that 68% PAT boost
- But working capital intensity = cash likely doing yoga stretches
- Investing CF = likely negative (new machinery)
- Financing CF = IPO ka paisa aane wala hai!
Translation: “Cash flow looks like your freelancer friend — always busy, never paid.”
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 21.25% |
| ROCE | 18.86% |
| PAT Margin | 6.14% |
| EBITDA Margin | 13.74% |
| D/E | 0.81 |
| P/B | 1.70 |
Commentary:
- ROE hotter than a LinkedIn intern post
- D/E at 0.81 = manageable, but don’t start a shopping spree
- PAT margin could use some protein
10. P&L Breakdown – Show Me the Money
| Metric (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 133.43 | 139.09 | 163.31 |
| EBITDA | 8.81 | 14.72 | 22.32 |
| PAT | 2.86 | 5.95 | 9.97 |
- PAT up 3.5x in 2 years. That’s some serious margin gymming.
- EBITDA margin improved from 6.6% to 13.7% = someone finally discovered costing software.
11. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Sellowrap (Post IPO) | 163.31 | 9.97 | 11.4x |
| Globe Panel | 78.1 | 4.1 | 18.5x |
| TPL Plastech | 230 | 13.8 | 17.2x |
| Mold-Tek Packaging | 756 | 80.2 | 21.4x |
Sellowrap: Not the coolest kid, but definitely not drunk at the finance wedding.
12. Miscellaneous – Shareholding, Promoters
Promoters:
- Mr. Saurabh Poddar
- Mr. Sushil Kumar Poddar
- Ms. Pooja Poddar
- Saurabh Marketing Pvt Ltd
- Sushil Kumar Poddar (HUF)
Promoter Holding:
- Pre-IPO: 92.18%
- Post-IPO: Likely to fall to ~73–75% range
No shady sell-offs. No dodgy related party drama. Clean like a new Maruti showroom.
13. EduInvesting Verdict™
Sellowrap is not a meme stock, but it’s not a snore-fest either. It’s a well-run, margin-improving, export-tapping company that makes stuff OEMs care about but consumers ignore. Is it exciting? No. Is it profitable? Possibly. Will it 5x? Only if your prayers are louder than fundamentals.
Final Take:
A solid, foam-wrapped bet for those who understand industrials. But don’t expect business-class legroom — it’s SME, remember?
Metadata:
Written by EduInvesting Team | July 23, 2025
Tags: Sellowrap Industries, IPO, Analysis, EduInvesting Premium
