Subscribe for Standard Glass Lining Technology Ltd IPO; Geojit Financial Services

IPO

Geojit Financial Services, Standard Glass Lining Technology Ltd

Standard Glass Lining Technology Ltd (SGLTL) is a Hyderabad-based engineering equipment manufacturer for the pharmaceutical (82% of FY24 revenue) and chemical sectors (13%). Established in 2012, SGLTL offers design, engineering, manufacturing, assembly, installation, and commissioning services. Its product portfolio includes reaction systems (57% of FY24 revenue), storage, separation & drying systems (30%), and plant engineering and services (13%). The company operates 8 manufacturing facilities in Telangana and serves 347 clients with over 65 products as of September 30, 2024.It had a ~ 17% market share in India's glass lined equipment market as of FY24. The Indian Glass Lined Equipment Market, valued at ~₹11.5 bn in FY24, is projected to grow at a 10.1% CAGR to ₹18.6 bn by FY29P. Globally, the market is valued at USD 21 bn in CY23, expected to reach USD 34 bn by CY28, driven by pharmaceutical and chemical sector expansion (Source: F&S Report).

Valuation and Outlook

At the upper price band of Rs.140, SGLTL is available at a P/E of 38.5x (on FY25 Annualised), which appears fairly priced compared to peers. The growing demand for glass-lined equipment in pharmaceuticals and chemicals offers significant growth potential. SGLTL’s healthy margins, consistent revenue growth robust growth outlook, a diverse product portfolio with a focus on customization, and inorganic growth plans support a "Subscribe" rating for the stock on a medium to longterm basis.

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Standard Glass Lining Technology -060125 - geo