Epack durables - Original Design Manufacturer (ODM)

EPACK Durable operates as room air conditioner original design manufacturer in India.
The product portfolio comprises room air conditioners, Small Domestic Appliances, along with Components like heat exchangers, cross-flow fans, axial fans, etc. The company incorporated in 2003.

They have established customers like Bajaj, bluestar etc.

RAC market share:

The company is the second largest RAC ODM manufacturer in India in terms of number of units (indoor units + outdoor units) manufactured in Fiscal 2023 through the ODM route. They hold 24% market share in the ODM for RAC space.

The company’s average length of relationship with RAC and SDA clients is 8.7 and 6.3 years, respectively.

Source

Factors such as rising urbanisation, easy access to credit, Increased affordability and heightened awareness of air quality and energy efficiency will positively influence the growth of RAC market.

Brands are taking RAC assembly in-house. That might be a concern for the RAC assembly. Competitors like Amber are expanding their offerings to non-RAC manufacturing and components space.

The stock is trading around the IPO pricing.

Could someone please comment on the valuation and pros and cons.
Thank you

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