Understanding Standard Glass Lining: Top Indian Manufacturer of Glass-lined Stainless Steel Reactors & PTFE Pipelines

Welcome to our first IPO summary video of 2025, where we're diving into the fundamentals of CA Rachana Ranade's company, Standard Glass Lining, and exploring its revenue streams, industry trends, risks, and valuation.

  • Here are 22 bullet points summarizing the video:
  • * Standard Glass Lining is a top three manufacturer of glass-lined stainless steel and nickel alloy-based specialized engineering equipment.
  • * They supply these products to the pharmaceutical industry and chemical industry.
  • * The company generates almost 99% of its revenue from sales within India, with less than 1% from exports.
  • + Pharmaceutical industry: ~80%
  • + Chemical industry: ~12.5%
  • * Revenue by line of business:
  • + Plant engineering and services: ~13%
  • * The chemical industry is expected to grow at a pace of 9-12%.
  • * The domestic Healthcare/Pharma industry may grow at 8-10%.
  • * The glass-lined equipment market is expected to grow at around 10% CAGR.
  • * Revenue from operations: grown from ₹2,400 million to ₹5,400 million (CAGR ~50%).
  • * EBITDA: grown from ₹400 million to ₹1,000 million (CAGR ~55%).
  • * PAT: grown from ₹251 million to almost ₹600 million (CAGR ~54%).
  • * Top 10 customers contribute to almost 51% of revenue.
  • * No long-term and exclusive contracts with the majority of customers and suppliers.
  • * Working capital days have been continuously increasing.
  • * P/E ratio: 39.77, which is lower compared to industry peers.
  • * EPS: ₹3.52, which is relatively low compared to industry peers.
  • * IPO opens on January 6th, 2025 (price band: ₹133-140).
  • * Total issue size: ₹410 crore, with ₹210 crore being fresh equity and ₹200 crore being an offer for sale.
  • * GMM Pfaudler's performance post listing: a steady increase from listing to 2020 level.
  • * HLE Glasscoat's performance post listing: a rise of almost 300% before stabilizing at the IPO level.

Source: CA Rachana Phadke Ranade via YouTube

❓ What do you think? What underlying factors, besides acquisitions, might have contributed to the slight decline in revenue growth from 2023 to 2024? Feel free to share your thoughts in the comments!