Tarsons Products Ltd IPO

(May Subscribe)

Tarsons Products Ltd is a leading Indian life sciences company with more than three decades of experience in the production and supply of labware products. The Company is an Indian labware company engaged in the designing, development, manufacturing and marketing of consumables, reusables and bench-top equipment. The company’s product portfolio is classified into three broad categories including consumables, reusables, and others. As of March 31, 2021, the company has a diversified product portfolio with over 1,700 SKUs across 300 products. Trason’s products are used in various laboratories across research organizations, academic institutes, pharmaceutical companies, Contract Research Organizations (CRO), diagnostic companies, and hospitals. Currently, the company has 5 manufacturing facilities located in West Bengal spread across approximately 20,000 sq. mts of area. The company has a strong distribution network across India comprising of over 141 authorized distributors as of March 31, 2021 and supplies its products to more than 40 countries.

Valuation

The company is a plastic labware company enjoying the most preferred vendor status. Health related segments have expanded post-pandemic; this augurs well for the company. At the upper end of the price band of Rs 662, the stock is priced at a PE of 35.5x on its annualized FY22 earnings. It is expanding to meet the rising demand for its products. The issue appears reasonably priced based on its financial data and future prospects. However, one must note that over 85 pct of the IPO proceeds would go to selling shareholders and only 15 pct for corporate purpose. One can Subscribe from a long-term perspective.

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