DelaPlex PO Financial Analysis

DelaPlex, founded on February 12, 2004, is a global technology and software development solution provider. Specializing in supply chain consulting, custom software development, cloud services and data science,  helps clients achieve growth through its expertise and partnerships with industry players is set to launch its IPO on 25 January 2024. Here's a summary of the company's business model, strengths, weaknesses, and growth prospects to assist investors in making informed decision

DelaPlex PO Overview

DelaPlex Ltd, incorporated in 2004, is an Indian subsidiary of DelaPlex Inc (US), with a 51% majority stake. Specializing in technology and software development, the company also offers consulting services. Key solutions include software-defined data centers, integrated infrastructure, cloud computing, DevOps, security, data analytics, and AI. The registered office is in Nagpur, Maharashtra, with a presence in Pune, Hyderabad, and Bengaluru. It serves clients in the US and Dubai, witnessing consistent global revenue growth. The company has 300 employees, with 286 full-time and 14 contract workers primarily in non-core functions.

DelaPlex PO Strengths

1- Tailored tech solutions
2- International market client base
3- Wide service portfolio
4- Global consulting and software solutions provider, helping businesses worldwide optimize their entire supply chain.

DelaPlex PO Risk

1- Revenue heavily depends on a few key clients, any disruption to current arrangements could impact the company's business and financial performance.

2- DelaPlex earnings largely come from customers in the United States. If the U.S. economy faces challenges it could impact business and overall performance.

3- Operates in a competitive landscape facing challenges from organized and unorganized players, which potentially may impact its business.

4- Faced negative cash flows from its investments in 2021, If this trend continues, it could impact company's growth and overall business prospects.

DelaPlex PO Details

DelaPlex IPO is scheduled from 25 to 30 January 2024. It has a face value of ₹10 per share, and the IPO's price range is ₹186-192 per share

Financial Performance of DelaPlex PO

DelaPlex recorded a Profit After Tax (PAT) of ₹4.04 crores in 2021, which increased to ₹6.12 crores in 2022 and further rose to ₹7.91 crores in 2023

Key Ratios

DelaPlex IPO's Return on Equity (ROE) was 42.66% in FY21, decreased to 39.26% in FY22, and further dropped to 33.66% in FY23. Suggesting a declining trend in the company's ability to generate profits from shareholder equity during these fiscal years

Promoters of DelaPlex PO

1. Mr. Nitin Sachdeva.
2.  Mr. Manish Iqbalchand Sachdeva.
3. Mr. Mark T. River.
4. Ms. Preeti Sachdeva

Company promoters, including Nitin Sachdeva, Manish Sachdeva, Mark River, Preeti Sachdeva, and DelaPlex Inc., currently hold 100% equity. After the IPO promoter stake will diluted to 73.66%

DelaPlex IPO Vs. Peers

DelaPlex Earnings Per Share (EPS), standing at 10.82. In comparison, other players in the same industry, Ksolves India have higher EPS of 20.98

Final Words

This article takes a closer look into DelaPlex IPO, scheduled for subscription from 25 January 2024. It suggests that potential investors thoroughly review the company's details, financials, subscription status and GMP. Grey Market Premium indicates the anticipated listing performance, providing valuable insights for investors to make well informed decisions. On 25 January 2024, DelaPlex IPO GMP is ₹125 up from the issue price reflecting a 65% increase