Durlax Top Surface IPO (SME) Review

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Durlax Top Surface Limited manufactures solid surface materials that are sold across India. The company has two brands, namely LUXOR and ASPIRON. Durlax Top Surface IPO plans to raise Rs 40.80 crores. The issue is a combination of fresh issue of 42 lakh shares aggregating to Rs 28.56 crores and offer for sale of 18 lakh shares aggregating to Rs 12.24 crores.

IPO opensJune 19, 2024
IPO ClosesJune 21 2024
IPO Size (Rs.) ₹40.80 Cr
IPO Size (shares)6,000,000 shares
BreakupFresh issue ₹28.56 Cr+ OFS  ₹40.80 Cr
Face Value:₹ 10
IPO Price in Rs :₹65 to ₹68 per share
Minimum Lot2000 Shares
Listing AtNSE SME
QIB ~50 %
NII Quota~15%
Retail Quota~35%
 Lead Manager Expert Global Consultants Private Limited 
RegistrarBigshare Services
Market makerGlobalworth Securities.

About Durlax Top Surface :

  • They are engaged in the business of manufacturing of solid surface material, which is sold across India, through an extensive distribution network of distributors and direct customers and also exported to various countries such as Dubai, Qatar, Greece, Sri Lanka.
  • They operate through two brands namely LUXOR® and ASPIRON®, which provide a wide range of solid surfaces known for their aesthetics and performance.
  • LUXOR® brand offers Acrylic UV Solid Surfaces, while ASPIRON® offers Modified Solid Surfaces.
  • Company’s manufacturing facility is located in Vapi, Gujarat.
  • Company employed 70 people
  • Promoters of Company are Shravan Suthar and Lalit Suthar.

Financials: Durlax Top Surface IPO

Particulars/  Rs. LacsMar 31, 2024Mar 31, 2023Mar 31, 2022
Revenue from operations9,076.426,673.834,735.82
Profit After Tax505.07209.4448.42
Share Capital1,242.771,240.0714.98
Net worth2,184.381,671.211,292.27
Diluted Earnings Per Share4.061.750.41
RONW(%)23.12%12.53%3.75%
NAV17.5813.4810.92
Total Borrowings6,070.713,690.933,929.82
Post issue Share Capital1663  
FV10.0  
IPO price68.0  
EPS Fy231.3  
PE Fy2354.0  
EPS Fy243.0  
PE Fy24 22.4  
Market cap in Lacs11,308  
Market cap / Sales1.25  

Anchors: Durlax Top Surface IPO

Durlax Top Surface IPO: Salient Points

  • Use of net proceeds
Sr. No.Particulars(₹ in lakhs)
1Part finance to meet the working capital requirements1,750.00
2General Corporate Purposes600.00
3Issue Related Expenses in relation to Fresh Issue500.00
 Total2850.00
  • Some projects done by Company:

  • KEY FINANCIAL AND OPERATIONAL PERFORMANCE INDICATORS (“KPIS”)
Metric  As of and for the Fiscal
 202420232022
Revenue From operations (₹ in Lakhs)9,076.426,673.834,735.82
Total revenue (₹ in Lakhs)9,083.936,684.204,741.81
EBITDA (₹ in Lakhs)*1,073.78779.87649.31
EBITDA Margin (%)11.8311.6913.71
Profit after tax (₹ in Lakhs)505.07209.4448.42
PAT Margin (%)5.563.141.02
Return on Equity (ROE) (%)26.2014.133.96
Debt To Equity Ratio2.782.213.04
Interest Coverage Ratio*2.281.591.17
Return on Capital Employed (ROCE) (%)20.2016.1312.35
Current Ratio1.341.341.26
Net Capital Turnover Ratio5.065.464.70
  • Peers:
Company/ FY24 figuresCMP Rs.Revenue Rs. CrNet Profit Rs. CrNPM (%)PEMacp/salesRoNW(%)
Durlax Top Surface6890.768.679.6%141.0423.12
Kaka Industries Limited188170.2217.0010.0%19.71.5125.25
Dhabriya Plywood Limited346211.63146.6%26.63.3217.1
Pokarna Limited736688.008712.6%253.32-5.63
  • Capacity utilisation is around 72%. It runs the plant in 2 shift. Output ccan incred max 20% more from present setup.
  • Maharashtra accounts for large chunk of sales.
  • Most of the raw material now procured from within India.
  • Durlax Top Surface IPO is coming at a PE ratio of 54x (FY23 Earnings) and 22.4x (fy24earnings).
  • I intend to apply in Durlax Top Surface IPO subject to availability of funds. Company products are premium grade which can lead better margins in business though listed player Stylam also in somewhat similar line may be slightly better priced.
  • GMP as reported on social media has been Rs. 50 (74%).
  • Expert Global Consultants Private Limited is Lead Manager and their managed issues IPO Performance on listing has been average. In past they have handled IPOs of K2 Infragen Limited, Jay Kailash Namkeen , Royal Sense Limited, Mangalam Alloys Limited, Zeal Global Services Limited, Sonalis Consumer Products Limited, Dollex Agrotech Limited, Rite Zone Chemcon India Ltd.
  • Market maker is new
  • SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
  • This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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