Institutional Alpha Dossier
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MAINBOARD
SYNCING
GMP: ₹-
Est. Listing: Calculating...
01
Bidding Opens
-
Issue Open
02
Bidding Closes
-
Closing Date
03
Basis of Allotment
-
Registrar Finalization
04
Exchange Listing
-
Secondary Debut
Issue Price Valuation
₹-
Upper Cap Price
Price Band Cap:
Book Built / Fixed
Lot Size & Retail Matrix
- Shares
Minimum Market Lot
Min Capital:
₹-
Application Size:
-
Quant Grade & Moat Score
Proprietary Multi-Factor Moat Model
Synthesizing institutional thesis...
💼 MINIMUM INVESTMENT
Capital Matrix
Retail (Min Lot)
Up to ₹2 Lakhs Category
₹14948
HNI (Min Lot)
sNII / High Net-Worth Tier
₹209272
HNI Capital Multiple:
Institutional Lot Sizing
🍩 RESERVATION QUOTA (%)
Issue Allocation
100%
Total Issue
Anchor
30%
Market Maker
0%
QIB
20%
NII / HNI
15%
Retail
35%
Institutional Corporate Dossier
Varmora Granito
COMPANY PROFILE & DNA
Incorporation / Founded
18-11-03
Active Vintage
Corporate Headquarters
Rajkot, Gujarat
Registered Hub
👔 Leadership & Promoter Group
Key Management
Bhavesh Vallabhdas Varmora, Hiren R Varmora, Pramodkumar Parsotambhai Patel
⚙️ Business Overview & Portfolio
Core Offerings
Varmora Granito Limited is engaged in manufacturing and trading of ceramic tiles, glazed vitrified tiles, bathware, and sanitaryware products in India and internationally.
🎯 Target Market & End-Use
Revenue Drivers
Used for residential and commercial flooring, walls, back paneling, building facades, kitchen slabs, and bathroom fittings.
🛡️
★ Unique Selling Proposition (Core Economic Moat)
Comprehensive premium product portfolio with customer-centric innovation, established pan-India distribution network, and advanced in-house manufacturing capabilities.
Objects of the Issue (Use of Proceeds & Allocation)
🎯 Objective 01
Repayment/Pre-payment of Borrowings of Company
₹215 Cr
Allocation
🎯 Objective 02
Repayment/Pre-payment of Borrowings of Subsidiaries
₹30 Cr
Allocation
🎯 Objective 03
General Corporate Purposes
Balance
Allocation
🎯 Objective 04
Not Mentioned
Not Mentioned
Allocation
Financial Performance & Multi-Year Trajectory
All Figures in ₹ Crores
Latest Total Income📊
₹-
Top-Line
EBITDA Margin⚡
-%
Operating
Net Profit (PAT) Margin📈
-%
Bottom-Line
Debt / Net Worth🛡️
-x
Leverage
📊 Income, EBITDA & Profit Growth Trajectory
Income
EBITDA
PAT Trend
🏛️ Balance Sheet: Net Worth vs Debt
Net Worth
Borrowing
| Particulars | FY26 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Total Income | 1512.46 | 1446.03 | 1435.48 | 1334.9 |
| EBITDA | 116.02 | 80.14 | 92.09 | 180.7 |
| Profit After Tax (PAT) | 55.09 | 30.77 | 44.94 | 52.35 |
| Net Worth | 810.22 | 743.2 | 703.36 | 638.38 |
| Total Borrowing | 357.95 | 505.16 | 412.89 | 266.04 |
Growth Engine & Compounding Velocity (KPIs)
Multi-Year Trajectory
1446.03
₹ Cr
YoY Growth
0.0073
3-Year CAGR
0.0408
80.14
₹ Cr
YoY Growth
-0.1298
3-Year CAGR
-0.334
30.77
₹ Cr
YoY Growth
-0.3153
3-Year CAGR
-0.2333
Capital Efficiency & Return Ratios (ROE vs ROCE)
Capital Allocation Audit
◈ ROE (Return on Equity)
Calculating...
-%
Current ROE
◈ ROCE (Capital Employed)
Calculating...
-%
Current ROCE
| MetricMetric | Current (%)Curr% | Last Year (%)Last% | 3-Yr Avg (%)3Y Avg | Trend StatusTrend |
|---|---|---|---|---|
| ROE (Return on Equity)ROE | 0.0414 | 0.0639 | 0.0624 | Consolidating |
| ROCE (Capital Employed)ROCE | 0.0642 | 0.0825 | 0.1155 | Consolidating |
Forensic Analysis & Reality Check
Earnings Quality & Dilution Audit
0.79
CFO / EBITDA
Cash Flow Conversion Efficiency
Checking...
Analyzing operating cash flow conversion...
| Parameter | Pre-IPO | Post-IPO | View |
|---|---|---|---|
| Debt / Equity | 0.68 | 0.11 | Low |
| EPS (₹) | ₹ 1.36 | ₹ 2.44 | Accretive |
| ROE (%) | 0.0414 | 0.0289 | Bad |
| ROCE (%) | 0.0642 | 0.0564 | Bad |
| P/E (Valuation) | 108.71 | 60.72 | Reasonable |
⏳ Debtor Days Trend (Receivables Cycle)
Analyzing...
FY23
FY24
FY25
Lower receivable days indicate faster cash collection from clients.
⚠️ Contingent Liabilities
Off-Balance Sheet
₹ 19.98 Cr
*Potential hidden obligations & legal/tax claims
Peer Comparison Analysis & Competitive Matrix
Industry Benchmarking
| Company NameComp | Revenue (Cr)Rev | P/E RatioP/E | ROCE (%)ROCE | ROE (%)ROE | OPM (%)OPM |
|---|---|---|---|---|---|
| Varmora Granito Limited IPO CANDIDATE | 1446.03 | 60.72 (Ask) | 0.0642 | 2.89% (Post Issue) | 0.0554 |
| Kajaria Ceramics Limited | ₹ 4830.36 Cr | 40.27 | 0.2387 | 0.1589 | 0.1784 |
| Somany Ceramics Limited | ₹ 2789.84 Cr | 28.55 | 0.137 | 0.0879 | 0.093 |
| Asian Granito India Limited | ₹ 1858.06 Cr | 72 | 0.054 | 0.0123 | 0.0648 |
| Orient Bell Limited | ₹ 691.45 Cr | 47.67 | 0.056 | 0.0378 | 0.062 |
| 0 | 0 | 0 | 0 | 0 | 0 |
▲ Positive Catalysts (Strengths + Opportunities):
8 Factors
▼ Risk Vectors (Weaknesses + Threats):
8 Factors
Strengths
Internal Competitive Moat
- Established player operating in the tile industry in India in a large attractive market
- Comprehensive premium product portfolio with customer centric innovation
- Well diversified pan India distribution network focused on EBOs
- Strategically located and technologically advanced in house manufacturing
Weaknesses
Internal Operational Constraints
- High working capital requirements and trade receivables cycle
- Concentration of manufacturing facilities in Morbi region
- Dependence on third party contract manufacturers for lower end products
- Substantial indebtedness and debt servicing obligations
Opportunities
External Growth Tailwinds
- Growing demand for premium Glazed Vitrified Tiles and Integrated Stone Technology
- Expansion into emerging markets in Eastern and Southern India
- Growth in real estate housing and infrastructure construction sectors
- Prepayment of debt using IPO proceeds to improve balance sheet strength
Threats & Risks
External Macro & Sector Headwinds
- Intense competition from organized and unorganized tile manufacturers
- Fluctuations in raw material power fuel and freight costs
- Potential default or delay in payment by B2B and trade customers
- Adverse changes in environmental regulations and government policies
Top 10 Anchor Investors & Smart-Money Allocation
INSTITUTIONAL BOOK
Top 10 Anchor Commitment
₹- Cr
Smart-Money Quality Score
- / 5.0 ★
Marquee Conviction
SEBI Anchor Lock-In Schedule
30D (50%) • 90D (50%)
Mandatory Lock-In
Anchor Book Allocation Pending Exchange Filing
Institutional anchor investor bidding & allocation disclosures are officially filed with NSE/BSE 1 working day prior to the IPO opening date.
| Rank | Marquee Anchor Institution | Smart-Money Grade | Amount Invested | Anchor Share (%) |
|---|
155
Base score of 5 adjusted +1 for high capex entry barriers and +1 for expanding EBITDA margin trend from 10.21% to 14.18%, offset by -1 for operating in a highly fragmented and commoditized tile industry and -1 for high working capital requirements of 96 days.
30
0
QIB Quota
Qualified Institutional Buyers
Smart Money
-x
Institutional Book
Inst. Conviction:
Evaluating
NII / HNI Quota
sNII (₹2L-10L) & bNII (₹10L+)
HNI Desk
-x
Non-Institutional
HNI Competition Ratio:
-
Retail (RII) Quota
Individual Investors (Up to ₹2L)
SEBI Lottery
-x
Retail Book
Retail Allotment Odds:
-