New Issue Analysis
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By Nitin Negandhi
Euro Pratik Sales Ltd. (EPSL) promoted in 2010, is an asset-light importer and marketer of wall panels and decorative laminates, holding an ~ 16% market share. Wall panels contribute nearly 75% of sales, with the balance coming from laminates.
The company operates through 36 contract manufacturers spread across India, South Korea, China, the USA, and Europe. Its marketing network is supported by 180 distributors across India. Over the past five years, EPSL has launched 113 catalogues covering 30+ product categories and more than 3,000 designs including popular variants such as Chisel, Miga Edge and Sapphire Flute.
EPSL is virtually debt-free, with promoters displaying a conservative approach towards borrowing. The IPO issue is entirely an offer for sale (OFS) following a liberal pre-IPO bonus issue to the promoters. Against the offer price of Rs.247, the average cost of acquisition for the promoter group under the OFS is just 10 paise. Post-OFS, promoter shareholding will stand at 70% with promoters having capitalised all past earnings before the IPO.
Details of bonus Issues & rights issue
Jan 2024: Bonus at 4:1
Apr 2024: Bonus at 7:2
Aug 2024: Share-split from Rs.10 to Re.1 face value
Sep 2024: Rights issue
Fire at godown in April 2025
In April 2025, a major fire broke out at EPSL’s warehouse in Bhiwandi, Maharashtra, destroying nearly one-third of its inventory, valued at Rs.33.5 crore out of Rs.96 crore. As the company operates as an importer and marketer, it carries a high working capital requirement, with inventory levels rising from Rs.36 crore in March 2024 to Rs.96 crore in March 2025.
The insurance claim for the damaged stock is expected to be settled by the end of December 2025. However, the short-term and one-time financial impact is estimated at around Rs.6.5 crore due to GST loss, Rs.1.5 crore from lower claim settlement, and additional loss of contribution arising from reduced turnover. The impact will be reflected in the first-half financials of FY26.
IPO details
| Name of the Company | Euro Pratik | |
| Issue Open | 16-09-2025 | |
| Issue closes | 18-09-2025 | |
| Issue Size | ||
| Offer for Sale | Rs. in crore | 451 |
| Face Value per share | Rs. | 1 |
| Upper issue price band | Rs. | 247 |
Financial Performance: (Rs. in crore)
| Particulars | Mar-25 | Mar-24 | Mar-23 |
| Total Income | 284 | 222 | 264 |
| Net Profit | 76 | 63 | 60 |
| EBITDA margin (%) | 39 | 40 | 42 |
| Peer Comparison (March’25) | Euro Pratik | Greenlam | Century | Stylam | |
| Sales | Rs in cr. | 284 | 3296 | 6200 | 1050 |
| EBIDTA margin | % | 39 | 14.5 | 16.8 | 12.4 |
| EPS | Rs | 7.5 | 28.4 | 36.5 | 72 |
| Current market price | Rs | 247 | 248 | 812 | 1732 |
| (Upper IPO Band) | |||||
| P/E ratio | No. of times | 33 | 9 | 22 | 24 |
What next – conclusion
The company has set ambitious plans to emerge as a major player in the imported wood panels and laminate market, targeting a revenue CAGR of 12% over the next five years. Over the last two years, its sales grew at 3.7% and profit at 12.5%.
While growth prospects remain healthy, the sector’s high margins are likely to draw increased competition, exerting pressure on profitability. Moreover, with a price-to-earnings ratio of around 33 times at the upper band of its OFS, the valuation leaves limited room for meaningful gains for investors in the near term.
Disclaimer
The writer is not a SEBI registered analyst. He and his friends and relatives may or may not participate in the IPO. Investors should consult their financial advisor before investing. Grey market premium is just an indicator and should not be relied upon.
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