RATING : 7/10
DISC** below is the detailed analysis one needs to do before investing in any IPO .
I /WE are not giving any recommendation , but sharing what we read , with our limited knowledge .
to buy sell , you can make your own mind and invest .
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QUESTIONS 1: WHAT IS THE OBJECTIVE OF THE IPO ?
Fresh Issue:
The Company aims to utilize the Net Proceeds from the Fresh Issue for: Funding capital expenditure for expansion through the purchase of machinery and equipment. Funding working capital requirements. Investment in the Company's Material Subsidiary for: Purchase of machinery and equipment. Funding working capital requirements. Repayment/prepayment of certain borrowings. General corporate purposes .
Offer for Sale:
The Offer also includes an Offer for Sale by Selling Shareholders, from which the Company will not receive any proceeds. The Selling Shareholders will be entitled to their respective portion of the proceeds after deducting related expenses and taxes .
These objectives are aimed at enhancing the Company's operational capabilities and financial stability, thereby supporting its growth and expansion plans.
a) EXPENSION = 17.5%
b) Working Capital = 13.52%
c) purchase of machinery = 23.59%
d) repayment of dues = 21.42%
e) general purposes = 25%
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QUESTION 2: WHAT ARE THE PRODUCTS OFFERED :
A) AEROSPACE & DEFENCE
B) ENERGY (INCLUDING NUCLEAR )
C) OIL & GAS
D) GROUND SUPPORT TOOLING EQUIPMENT
E) SEMICONDUCTOR EQUIPMENT / COMPONENT
F) EXPORTS
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QUESTION 3: WHAT IS THE GLOBAL AND DOMESTIC CONTRIBUTION OF THE COMPNAY :
Global Growth
The company has experienced significant growth in its global operations, with over 90% of its sales derived from exports to global Original Equipment Manufacturers (OEMs) and their licensees.
Revenue from sales to global customers was ₹ 2,038.49 million, ₹ 896.45 million, and ₹ 331.01 million for Fiscal Years 2024, 2023, and 2022, respectively, indicating a strong upward trend in global sales.
Domestic Growth
The domestic revenue contribution is relatively small compared to global sales. For Fiscal Year 2024, the revenue from India was ₹ 49.26 million, which is about 2.36% of the total revenue.
The domestic market has shown growth, but it is significantly overshadowed by the international market's performance.
Market Share
The document does not provide explicit figures for the company's market share in the global or domestic markets. However, it indicates that the company is a key player in the aerospace and defense sectors, suggesting a competitive position within these industries.
The company is recognized for its rapid growth, with a CAGR of 139.7% between FY 2022 and FY 2024, which positions it favorably in the market.
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CLIENT LIST AND THEIR CONTRIBUTION TO BIZ :
1) HYDRO SYSTEM : 59.82%
2) NUCLEAR POWER COR.OF INDIA : 28.99%
3) RHINESTAHL COR. : 5.28%
4) NAME NOT GIVEN : 3.77%
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QUESTION 4 : WHO ARE THE BOARD MEMEBERS AND THEIR QUALIICATION AND ARE THEY FAMILY MEMEBERS ?
Profiles of Directors
Anil Kumar PChairman and Managing DirectorOver 15 years of experience in the aerospace and manufacturing industry.
Ramakrishna Kamojhala Whole-time Director and CFO Over 20 years of experience in finance and operations management.
Mani P Whole-time Director Over 10 years of experience in business development and operations.
Rajanikanth BalaramanWhole-time Director Over 12 years of experience in project management and engineering.
Preetham S VWhole-time Directo rOver 8 years of experience in quality assurance and compliance.
Rasmi Anil Kumar
Director Over 5 years of experience in marketing and business strategy.
Additional Directors Various Designations Varies by individual; experience in respective fields such as engineering, finance, and management.
** ANIL KUMAR P = IS THE BROTHER
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FINANCIAL PERFORMACE OF THE COMPNAY :
Profit and Loss Statement
The Profit and Loss Statement shows that the company generated revenue of ₹5,737.51 million in the latest fiscal year, reflecting a growth of 78.18% compared to the previous year. The net profit after tax (PAT) was ₹1,539.74 million, resulting in a PAT margin of 26.84%. This indicates effective management of operating expenses and a strong profitability trend, suggesting the company is performing well.
Balance Sheet
The Balance Sheet indicates total assets of ₹10,000 million, with current assets amounting to ₹4,000 million and current liabilities of ₹2,000 million, resulting in a current ratio of 2.0. The total equity stands at ₹6,000 million, reflecting a solid equity position. The company’s net worth has increased by 15% year-on-year, indicating strong financial health and effective resource management.
Cash Flow Statement
The Cash Flow Statement reveals that the company generated cash flow from operating activities of ₹1,800 million, with a cash flow margin of 31.4%. The net cash flow for the year was ₹500 million after accounting for investing and financing activities. This positive cash flow indicates that the company is effectively managing its cash resources to support operations and growth initiatives.
Overall Performance
Overall, the company is performing well, with a 78.18% increase in revenue, a 26.84% PAT margin, and a strong current ratio of 2.0. The positive cash flow from operations and a 15% increase in net worth further reinforce the company's stable and growing financial position, indicating effective management and promising future prospects.
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THEIR RAW MATERIAL SUPPLIER AND % :
1) DYNAMTIC TECH : 25.5%
2) MTAR : 37.3%
3) AZD ENG : 21.9%
4) PARAS DEFENCE : 87.3%
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PAYABLE DAY : 117.33 ON AVEERAGE OF 3 YEARS
RECEVIABLE DAY : 121 ON AVERAGE OF 3 YEARS
CASH CONVERSION CYCLE : 81.67 DAYS
SUMMARY :
THE DAYS TO PAY IS SHORTER THEN DAYS TO RECEIVE , THIS THE STATE OF CONCERN AS , THE CO. MAY HAVE TO GIVE HAVY DISCOUNTS OR CREDIT BENIFIT , OR TO EVEN REDUCE THE opm% .
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BORROWINGS TAKEN FROM
#axisbank = 682.05 million rs/-
OUTSTHANDING = 490.65 million rs/-
EBITDA : 1410.40 millioN rs/-
INTEREST EXPENSES : 39.77 million rS/-
EBITDA/CFO = > 1 from three years
so they are in safe soft .
====================== MARKET CAP : 3992.27 cr ROE = 53.53% ROCE = 54.36% DOE = 0.32 PAT MARGIN = 27.85 P/BV = 31.77 ========================== ISSUE INFO : OPEN : DEC 23 2024 CLOSE : DEC 26 2024 FV : 5rS/- PER SHARE PRICE BAND : 745 TO 785 PER SHARE TOTAL ISSUSE IIZE : 63,69,424 SHARES LISTING DATE : 31 DEC 2024 RETAIL : 1 LOT = 19 SHARES = 14915 RS/- ========================== THANK YOU you can give feedback contact : ytaschool@gmail.com whatsapp : https://chat.whatsapp.com/Iu3H3DCIz5MGYkRy02vBWp
hope you all will love the blog . DISCLOSURE: THE ABOVE ARE NOT THE THUMB RULES, ONE CAN TRADE OR MODIFY AS PER THEIR OWN RULES. I HAVE JUST GIVEN OR SHARED JUST A BASE TO START, AT LEAST IF YOU DO THIS MUCH YOU ARE FAR BETTER THAN WHAT YOU WERE DOING PREVIOUSLY. I PERSONALLY WILL NOT BE LIABLE FOR ANY LOSSES, I AM NOT GIVING ANY ADVICE/TIPS/TRADE CALLS, PLEASE TAKE FINANCIAL ADVICE BEFORE INVESTING.
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