Euro Pratik Sales IPO Analysis 2025: Big Profits or Big Risks for Investors?

Euro Pratik Sales Limited is a well-recognised name in India’s decorative wall panel and decorative laminates industry. The company has positioned itself as one of the country’s leading organised brands in this niche market. It operates under two key brand names – “Euro Pratik” and “Gloirio” – which focus on providing consumers with quality, reliability, and innovative product offerings. By closely studying market trends and consumer needs, the company has built a product portfolio that aims to deliver both functionality and style, while ensuring customer satisfaction.

Table of Contents

1. Euro Pratik Sales IPO Overview – Company Background & Market Presence
2. Business Model of Euro Pratik Sales
3. Euro Pratik Sales Financial Performance
4. Key Financial Ratios of Euro Pratik Sales Limited
5. Euro Pratik Sales IPO Details – Issue Size, Price Band, and Dates
6. Objectives of the Euro Pratik Sales IPO – How Funds Will Be Used
7. Euro Pratik Sales Strengths and Competitive Edge
8. Risks and Challenges for Euro Pratik Sales Investors
9. Euro Pratik Sales IPO Valuation & Peer Comparison
10. Euro Pratik Sales IPO Review – Should You Invest?
11. Frequently Asked Questions (FAQs) on Euro Pratik Sales IPO

Euro Pratik Sales IPO Overview - Company Background & Market Presence

The company was originally incorporated in January 2010 under the name Better Life Mission Multitrade Private Limited. Over the years, it underwent multiple changes to align better with its business vision. In May 2017, it was renamed Euro Pratik Sales Private Limited. Later, in October 2024, it was converted into a public limited company and formally renamed Euro Pratik Sales Limited.

Headquartered in Mumbai, Maharashtra, the company has its registered and corporate office located in Andheri (West). The promoter group includes Pratik Gunvantraj Singhvi, Jai Gunvantraj Singhvi, and their respective HUFs, all of whom have been instrumental in driving the growth and expansion of the business.

Business Model of Euro Pratik Sales

Euro Pratik Sales is engaged in selling and marketing decorative wall panels and laminates. The business model revolves around offering a diverse range of products across 30 categories with more than 3,000 design options. Its product portfolio primarily includes:

• Decorative Wall Panels: Popular ranges such as Chisel Series, Decolite, and Miga Edge.
• Decorative Laminates: A variety of laminate designs for different consumer needs.
• Other Products: Interior films, adhesives, and several other items that complement the core range.

The company outsources a significant portion of its manufacturing to contract manufacturers. In fact, reliance on these vendors has increased over the years, with as much as 70.56% of purchases in FY24 coming from the top contract manufacturers.

On the distribution front, Euro Pratik Sales follows a direct distribution model, working closely with its distributors to reach customers. Its domestic presence spans across 88 cities in India, while international operations have also begun. In FY24, the company entered the export market, supplying to over six countries, including Singapore, the UAE, Australia, Bangladesh, Burkina Faso, and Nepal.

To expand both its product range and geographical reach, Euro Pratik Sales has made several acquisitions:

• Vougue Decor: Acquired via subsidiary Gloirio Decor, catering to 40 distributors.
• Millenium Decor: Specialises in translucent panels and multi-use ceiling/wall products.
• Euro Pratik Laminate LLP: Decorative panel business transfer.
• EuroPratik Intex LLP: 53% stake acquisition, focused on exterior wall panels.
• Euro Pratik USA LLC: 50.1% stake acquisition through subsidiary, enabling entry into the US market.

These acquisitions not only diversify the portfolio but also allow the company to tap into new distribution networks and markets.

Euro Pratik Sales Financial Performance

Euro Pratik Sales has demonstrated strong growth in revenue and profitability, supported by its expanding portfolio and geographical presence. The consolidated financial highlights are as follows:

Revenue from Operations

• In FY25, Euro Pratik Sales reported revenue of ₹284.22 Cr, up from ₹221.70 Cr in FY24, reflecting a strong 28.2% year-on-year growth.
• This growth highlights the company’s expanding portfolio and wider geographical reach, which have significantly boosted sales momentum.

Total Expenses

• Along with rising revenues, total expenses climbed to ₹192.17 Cr in FY25 from ₹145.07 Cr in FY24, marking a 32.4% increase.
• The sharper rise in expenses suggests higher operational costs, possibly due to expansion, raw material costs, or higher marketing spends.

Profit Before Tax (PBT)

• Despite cost pressures, the company achieved PBT of ₹100.79 Cr in FY25 versus ₹84.58 Cr in FY24, delivering a 19.2% increase.
• This indicates that profitability remained intact even as expenses surged, reflecting operational efficiency.

Profit After Tax (PAT)

• After tax adjustments, PAT stood at ₹76.79 Cr in FY25 compared to ₹62.87 Cr in FY24, showing a 22.1% growth.
• The consistent improvement in net profit underscores the company’s ability to sustain earnings while scaling operations.

Net Worth

• A standout highlight was the jump in net worth to ₹234.49 Cr in FY25 from ₹155.73 Cr in FY24, representing an impressive 50.6% growth.
• This improvement reflects stronger retained earnings, healthier reserves, and overall balance sheet strength.

Earnings Per Share (EPS)

• On a per-share basis, EPS increased to ₹7.53 in FY25 from ₹6.19 in FY24, a solid 21.7% growth.
• The rise in EPS demonstrates enhanced shareholder value creation and long-term investment attractiveness.

Euro Pratik Sales showcased a robust FY25 performance with strong revenue and profit growth. Although expenses rose faster than revenues, the company maintained healthy margins, achieved a sharp rise in net worth, and delivered better returns to shareholders.

Key Financial Ratios of Euro Pratik Sales Limited

Key ratios highlight Euro Pratik Sales’ financial strength and help compare it with its peers.

EBITDA: Increased consistently from ₹62.16 crore in FY22 to ₹110.10 crore in FY25, reflecting strong revenue traction and operational scalability.

EBITDA Margin (%): Expanded from 29.3% in FY22 to nearly 39% in FY25, showing improved cost controls, higher efficiencies, and better product mix.

ROE (%): Remained robust at 39–48% across the years, underlining the company’s ability to generate superior returns on shareholder equity.

Debt/Equity: Stayed negligible at 0.01 in FY25, indicating financial prudence and low reliance on borrowings for growth.

Euro Pratik Sales IPO Details – Issue Size, Price Band, and Dates

The IPO of Euro Pratik Sales is structured as a 100% Book Built Offer, entirely comprising an Offer for Sale (OFS) by existing shareholders.

The final price band, bid lot, and offer dates will be disclosed before the IPO opens.

Objectives of the Euro Pratik Sales IPO - How Funds Will Be Used

The IPO has two main objectives:

1. To enable existing shareholders to monetise their holdings by selling part of their stake (OFS worth ₹7,300 million).
2. To benefit from listing equity shares on recognised stock exchanges, enhance visibility and provide a public market for its shares.

Euro Pratik Sales Strengths and Competitive Edge

Euro Pratik Sales highlights several factors that give it a competitive edge:

• Market Leadership: The company is positioned as one of the largest organised brands in the decorative wall panel industry in India, with a market share of 15.87% by revenue.
• Diverse Product Range: With 30 product varieties and over 3,000 designs, the company caters to a broad customer base.
• Expansion through Acquisitions: Recent acquisitions have enabled the company to expand into new product categories, establish wider distribution networks, and enter international markets.
• Financial Strength: Strong balance sheet, consistent profitability, and robust operating margins. The company also generated positive operating cash flows across FY22–FY24.
• Eco-Friendly Products: Focus on sustainable and safe materials, with products that are anti-bacterial, anti-fungal, and free from heavy metals.

Risks and Challenges for Euro Pratik Sales Investors

Investors should also note the risks associated with the business:

• High Dependence on Contract Manufacturers: A significant portion of purchases comes from external vendors, leading to dependency risk.
• Product Concentration: Revenue is heavily reliant on decorative wall panels, exposing the company to category-specific risks.
• Weak Intellectual Property Protection: Out of thousands of designs, only 14 are registered for IP protection.
• Related Party Transactions: Substantial transactions with promoter-linked entities (137% of revenue in H1 FY25).
• Regulatory Concerns: Promoters had previously received a SEBI warning for delayed disclosures.

Euro Pratik Sales IPO Valuation & Peer Comparison

Below is the valuation and peer comparison of Euro Pratik Sales Ltd. against listed industry players for FY24:-

Euro Pratik Sales Ltd. reported an EPS of ₹7.53 with a healthy RoNW of 32.65%, which is significantly higher than most listed peers. However, its NAV per share at ₹22.91 is much lower than larger players like Asian Paints (₹201.84) and Indigo Paints (₹216.35), reflecting its relatively smaller size and scale.

Greenlam Industries trades at a very high P/E of 87.5 despite a lower RoNW (6.07%), showing investor optimism around growth. In contrast, Asian Paints and Berger Paints have established dominance with strong EPS (₹38.25 and ₹10.13) and stable returns (RoNW ~19%). Indigo Paints, though smaller, enjoys high valuations at 40.3x P/E, backed by an EPS of ₹29.76.

For Euro Pratik Sales, P/E is not available yet as IPO pricing is undisclosed. However, given its superior RoNW and moderate EPS, the eventual valuation will determine its attractiveness versus peers. If priced competitively (closer to Berger/Indigo multiples), Euro Pratik could look appealing for investors focused on capital efficiency.

Euro Pratik Sales IPO Review – Should You Invest?

Euro Pratik Sales Limited has established itself as a strong player in the decorative wall panel and laminates market, supported by its wide portfolio, strategic acquisitions, and growing international presence. The company has reported consistent revenue growth and maintained robust profitability margins, making it financially sound.

However, investors should keep in mind the risks, including its dependence on contract manufacturers, product concentration, related-party transactions, and the fact that the IPO proceeds will not flow into the company.

As the IPO is a pure Offer for Sale, it primarily provides liquidity to existing shareholders. For investors, the attractiveness of this issue will largely depend on the valuation compared to listed peers in the paints and laminates industry.

Frequently Asked Questions (FAQs)

1. Since the IPO is a pure OFS, will Euro Pratik Sales get any fresh capital for growth?
No, the company itself will not receive any funds. The entire proceeds will go to selling shareholders, which means future expansion will have to rely on internal accruals or borrowings.

2. How does Euro Pratik Sales’ RoNW of 40.39% compare with industry leaders?
The company’s RoNW is stronger than peers like Asian Paints (29.74%) and Berger Paints (21.75%), reflecting higher efficiency in utilising capital.

3. What is the biggest risk to Euro Pratik’s business model?
The company depends heavily on contract manufacturers, with over 70% of purchases coming from top vendors in FY24. This creates supply chain dependency risk.

4. How diversified is the revenue base?
While Euro Pratik offers 30 product categories and 3,000 designs, its revenue remains largely concentrated in decorative wall panels, making it vulnerable to demand shifts in this segment.

5. What should investors focus on while evaluating this IPO?
Two key areas stand out: valuation compared to peers, which trade at 40x–55x P/E, and the sustainability of Euro Pratik’s strong margins and high RoNW.

6. Does the company have any regulatory red flags?
Yes, the promoters previously received a SEBI warning for delayed disclosures. While not a major penalty, it raises governance-related watch points.