Harsh visharia IPO Review

Avoid

There are bigger, better and more liquid stocks such as gulf oil, tide water oil available at good valuations. Gulf oil is even foraying into battery manufacturing and investing in companies with business of EV charging stations because they also know lubricant industry is going to slow down with the EV revolution. Better stick with big and reputed companies than such small companies. Survival and growth is better in gulf oil, tide water oil etc.

Also the latest figures fy23 not given-red flag

2

Apply

Ipo size 50 crores good chance of allotment for retail and HNI.
Company is able to generate good operating cash flow along with profits. And with the new plant in Maharashtra profits could grow multifold over the coming years.
Since they say they have patented technology of continuous process, this is thier moat and differentiates them from typical commodity company. Company shall be able to grow sustainable with improved margins.

3

Avoid

Company is insolvent as on date due to negative networth. If the IPO fails the lenders may drag it to IBC and take huge haircut on loans. Also if the IPO succeeds based on track record the company may again have negative networth which may lead to value of investment drop to 0