IPO closes on 18 Sep'25
Euro Pratik Sales Ltd
Minimum Investment
₹ 14,820 / 60 shares
Our Verdict:
Subscribe
- Euro Pratik Sales Ltd (EPSL) has delivered consistent performance over the past three years, reflecting the scalability of its asset-light model and a brand-led growth strategy. Despite challenges like global supply chain disruptions and fluctuating raw material costs, the company has managed to sustain healthy margins, strong return ratios and a virtually debt-free balance sheet.
- From a valuation standpoint too, the IPO appears fairly priced with a Price-to-Earnings (PE) multiple of 33x based on FY25 earnings, especially considering its superior margin profile and industry-leading return metrics.
- Leveraging its strong brand equity and extensive pan-India distribution network, EPSL is well-positioned to capitalize on the expanding premium home décor sector in India.
- While short-term gains may be limited, investors may consider subscribing to the IPO with a long-term investment outlook, supported by the company's solid fundamentals and growth prospects.
About the company
Founded in
19 Jan'10
Managing director
Pratik Singhvi
- EPSL is an asset-light enterprise operating in the interior décor industry. Its core business revolves around conceptualizing, designing and marketing decorative wall panels and laminates, which are then manufactured through a network of 36 contract manufacturers both in India and internationally.
- EPSL boasts a diverse product portfolio spanning over 30 product categories and more than 3,000 designs. This includes wall panels, laminates, louvers, profiles, mouldings, translucent panels, interior films and adhesives.
- EPSL’s extensive distribution network includes 180 distributors across 25 states and 5 union territories in India. In addition, the firm exports its products to markets such as the UAE, Singapore, Australia, Nepal and Bangladesh.
STRENGTHS
- Market Positioning: EPSL is one of India’s leading brands in decorative wall panels and holds a significant position in the market, with a 15.87% market share by revenue in the organized decorative wall panels industry.
- Consistent Performance: EPSL has demonstrated steady growth from FY23 to FY25, achieving a compound annual growth rate (CAGR) of 4% in operating revenue, 15% in EBITDA and 13% in net profit.
- Strong Return Metrics: EPSL boasts impressive return ratios, with a Return on Equity (ROE) of 39.18% and a Return on Capital Employed (ROCE) of 44.58%, surpassing its listed peers.
- Exceptional Margins: EPSL’s EBITDA margin stands at 38.74% as of FY25. The company’s asset-light model and outsourcing strategy help minimize capital expenditure, enabling it to focus on product design, branding and distribution expansion—driving industry-leading margins.
RISK FACTORS
- High Dependency on Imports: EPSL is significantly exposed to exchange rate fluctuations. In the last three years, purchases in foreign currencies amounted to Rs 115.3 crore, Rs 113.5 crore and Rs 138.6 crore, constituting 54.72%, 92.22%, and 81.17% of total purchases, respectively. These fluctuations could adversely affect the company's margins.
- Cash Flow Concerns: EPSL reported negative operating cash flows in FY25. Continued negative cash generation could strain liquidity, increase reliance on external funding and pose risks to the company's financial stability and business continuity.
- Dependency on Contract Manufacturing: EPSL operates without its own manufacturing facilities and relies heavily on contract manufacturers. The firm is materially dependent on its largest contract manufacturer for production. In FY25, FY24 and FY23, purchases from this top contract manufacturer accounted for 24%, 70% and 56% of total purchases, respectively. The loss of this key supplier could disrupt operations and adversely impact business results.
- Rising Trade Receivables: EPSL’s trade receivables have increased substantially from Rs 60.5 crore in FY23 to Rs 95.8 crore in FY25. Inability to efficiently collect receivables or defaults in payments could negatively impact cash flow, business operations and overall financial stability.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 451.31 crore
Fresh Issue
₹ -
OFS
₹ 451.31 crore
Price range
₹ 235 - 247
Lot size
60 shares
Issue Objective
This is a pure Offer for Sale (OFS), meaning the company will not receive any proceeds from the offer. All the proceeds will be received by the Selling Shareholders.
Dates
Bidding open
16 Sep'25
Bidding close
18 Sep'25
Allotment date
19 Sep'25
Refund date
22 Sep'25
Listing
23 Sep'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.