Type Here to Get Search Results !

Platinum Industries stock a Rising Star: buy, sell or hold

 Platinum Industries, a renowned PVC and CPVC additives manufacturer, made a resounding entrance into the stock market, surpassing initial expectations. Despite a modest start below expert predictions, the stock exhibited robust returns, propelled by a premium over its issue price. However, it's essential to underscore that unwavering trust in Grey Market Premium (GMP) may not always align with reality. Contrary to prevailing sentiments, our perspective suggests that Platinum Industries IPO outperformed expectations, presenting lucrative opportunities for profit, particularly at elevated stock levels.

Business Overview:

Platinum Industries has carved a niche for itself by specializing in the production of high-quality PVC stabilizers, CPVC additives, and lubricants. The company is distinguished by its commitment to setting industry benchmarks, evident through its state-of-the-art R&D lab and ISO-certified manufacturing processes. Operating in the specialty chemicals sector, Platinum Industries attributes a significant portion of its success to the establishment of robust customer relationships.

Financial Performance of Platinum industries:

The financial performance of Platinum Industries in FY23 reflects a remarkable trajectory. With a notable 24% growth in revenue, the company reported a substantial figure of ₹234 crore. Furthermore, the net profit for the same fiscal year stood at ₹37.5 crore, marking a considerable leap from the previous year's ₹17.8 crore. The interim period ending September 30, 2023, witnessed revenues of ₹129 crore, accompanied by a net profit of ₹23 crore. Importantly, the annual net profit as of March 2023 demonstrated a staggering year-on-year growth rate of nearly 133%, significantly outpacing the industry's average growth in earnings.

Key Financial Ratios:

Delving into Platinum Industries' financial ratios provides insights into the company's financial efficiency and strength:

Return on Assets (ROA): 40.49%

Current Ratio: 1.8

Return on Equity (ROE): 92.7%

Debt to Equity Ratio: 0.30

Inventory Turnover Ratio: 14

Debt-to-Equity Ratio:

Platinum Industries maintains a healthy debt-to-equity ratio of nearly 24%, indicating that only 24% of its total shareholder equity is comprised of debt. Furthermore, the company comfortably covers its debt through operating cash flow, boasting an impressive coverage rate of 220%. These figures underscore Platinum Industries' sound debt management practices and its ability to meet financial obligations.

 Investment Recommendation: Platinum industries Stock buy, sell or hold

Considering the company's consistent financial growth, robust revenue figures, and favorable financial ratios, holding Platinum Industries stock for the medium to long term is a judicious strategy. Investors who secured allotments are advised to contemplate booking profits, while those without allotments may choose to wait for opportune moments to enter the stock. Strategic patience is advised – await corrections and more attractive valuations before considering accumulation.

Market Position and Expansion Prospects:

Platinum Industries' unique positioning, coupled with its fair valuation and positive macroeconomic factors, places it as a promising player in the industry. The company's commitment to innovation and quality sets the stage for further expansion and success. Investors can anticipate potential gains by aligning with Platinum Industries' growth trajectory over the medium to long term.


In summary, Platinum Industries emerges as a compelling investment opportunity, supported by its unique market position, fair valuation, and positive financial indicators. The stock, with its growth prospects, presents an opportunity for investors to unlock potential gains in the medium to long term.


Post a Comment

* Please Don't Spam Here. All the Comments are Reviewed by Admin.

Top Post Ad

Below Post Ad