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NikitaPapersLimited IPO

Nikita Papers Limited IPO
Start Date27-05-2025
Application Timing10am-5pm
Price Range₹95 - ₹104
Min Qty1200
Min. Investment₹124800
Listing DateNA
Close Date29-05-2025

About Nikita Papers Limited IPO

Nikita Papers Limited, incorporated in 1989, is a prominent manufacturer of paper and paper products in India. The company specializes in producing a wide range of paper grades suitable for industrial, commercial, and printing purposes. With a focus on eco-friendly manufacturing, Nikita Papers uses recycled materials to create sustainable paper solutions.

Their flagship product, Kraft Paper, ranging from 70–200 GSM, is widely used for wrapping, bags, and packaging needs. The company has built a strong presence in both domestic and international markets, backed by an experienced management team, a strategic production location, and innovative production techniques.

As of May 2025, the company employs over 200 professionals and continues to expand into verticals such as fluting media and specialty papers to meet evolving market demand.

Why To Invest in Nikita Papers Limited IPO

Strong Financial Performance

  • Revenue of 346.78 Cr and Profit After Tax (PAT) of 16.60 Cr as of FY 2023–24.
  • Healthy Return on Equity (ROE) at 21.45% and Return on Capital Employed (ROCE) at 28.71%.

Eco-Friendly Business Model

  • Focus on recycled and sustainable raw materials for manufacturing, aligning with global ESG trends.

Strategic Market Position

  • Expanding into new segments like fluting media and specialty paper, with strong domestic and export demand.

Experienced Promoters & Management

  • Led by a seasoned leadership team with decades of industry expertise.

Attractive Valuations

  • Reasonable P/E ratio of 11.39 (Pre-IPO) and a Price-to-Book Value of 2.44, compared to industry peers.

Growing Industry

  • Paper and packaging demand is expected to surge due to increasing e-commerce and industrial activities.
Financial Table
Period Ended 31 Dec 2024 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets349.78299.00256.80235.30
Revenue272.38 346.78401.31 358.49
Profit After Tax 15.68 16.60 8.65 6.95
Net Worth 93.0577.3754.7446.10
Reserves and Surplus 74.8859.2046.13 37.48
Total Borrowing 206.71189.24163.02124.74
Strengths And Risks
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Strong Financial Metrics: High ROE (21.45%), ROCE (28.71%), and consistent PAT growth.
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Environmentally Focused Operations: Use of recycled raw materials aligns with global ESG trends.
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Experienced Promoters: Robust leadership with a clear growth vision.
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Expansion Strategy: Entry into new segments like fluting media enhances future scalability.
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Strategic Location & Distribution: Enables efficient supply chain for domestic and export markets.
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SME Listing Volatility: SME stocks may experience higher price fluctuations post-listing.
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Industry Competition: The paper industry faces stiff competition from domestic and global players.
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Raw Material Price Fluctuations: Profit margins can be impacted by rising costs of pulp, water, and chemicals.
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Debt Load: Total borrowings stand at ?206.71 Cr as of FY24, which may impact long-term profitability if not managed.
FAQs
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