S.K.Offset SME IPO

Strengths · 8

• 01Sales have almost tripled in two years, from Rs 23.31 crore in FY2024 to Rs 48.65 crore in FY2025 and Rs 67.00 crore in FY2026.
• 02Profit has grown enormously over the same period, from Rs 0.72 crore to Rs 7.48 crore.
• 03EBITDA improved from Rs 1.16 crore in FY2024 to Rs 5.62 crore in FY2025 and Rs 14.18 crore in FY2026.
• 04Return ratios are strong, with RoNW of 37.82% and RoCE of 22.91%, and a PAT margin of 11.22%.
• 05The issue is priced moderately at about 12.94 times earnings on an EPS of Rs 9.66.
• 06Offering printing, packaging and labelling together lets a customer source everything from one supplier, which makes the relationship harder to break.
• 07It has a long record of nearly 20 years, having started in February 2007.
• 08Most of the money goes into the business, with Rs 18.66 crore for working capital and Rs 2.11 crore for plant and machinery at Meerut.

Risks · 8

• 01Debt is high. Total borrowing was Rs 34.58 crore against a net worth of only Rs 19.78 crore, a debt to equity ratio of 1.75, and it has more than doubled in two years from Rs 14.70 crore.
• 02The profit jump is very recent. Profit after tax went from Rs 1.54 crore to Rs 7.48 crore in a single year, and that scale of jump is hard to repeat.
• 03Printing is capital heavy. Presses are costly, need regular replacement and have to be kept running to pay for themselves.
• 04Paper and paperboard prices move sharply and are the main input cost.
• 05A part of the revenue comes from trading and importing paper, foils and inks, which earns less than the printing work itself.
• 06Textbook and educational printing is seasonal and often won through tenders, so both volume and price can swing.
• 07Promoter holding will come down from 100% to 69.97% after the issue.
• 08This is an SME issue. One lot is 1,000 shares, which is Rs 1.25 lakh at the upper band of Rs 125, and SME shares usually trade in low volume after listing.

S. K. Offset Limited was started in February 2007. It provides printing and packaging together as a single service. It began with offset printing and has since added labelling and packaging.

Its printing work covers books, textbooks, brochures, catalogues, stationery, pamphlets, magazines, journals and general commercial printing. It also does designing, graphics, lithography and publication related work.

Its offerings fall into three groups. Printing is the original business. Packaging covers mono cartons, master cartons, boxes and other packaging made to a customer's own requirement. Labelling covers stickers, product labels, barcodes and promotional material in different sizes and finishes. It also offers digital design services, preparing packaging artwork, layouts, colour formatting and print ready files. Because it has integrated forward across printing, packaging and labelling, a customer can buy all three from one supplier. Alongside this it trades, imports and exports printing and packaging materials such as paper, paperboard, foils and inks.

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