Anmol India Limited

Started in 1998, Assam based Anmol India Limited is a company engaged in the business of Coal import and supply. The primary product of the Company is USA Coal (US Napp Coal and USA ILB). It also deals in Indonesian Coal and Petroleum Coke. Small and Medium scale manufacturers are the primary clients of the company. It caters to the needs of clients in over 100 different locations across India. The client list comprises of companies from dozen different types of industries and trades both in Coal and Pet Coke. On Financial performance front, for last three fiscals, AIL has posted turnover/net profits of Rs. 189.81 cr. / Rs. 0.83 cr. (FY16), Rs. 186.50 cr. / Rs. 1.09 cr. (FY17) and Rs. 299.24 cr. / Rs. 2.62 cr. (FY18), For first half of FY19, it has earned net profit of Rs. 1.72 cr. on a turnover of Rs. 263.06 cr. For last three fiscals, it has posted an average EPS of Rs. 2.49 and an average RoNW of 17.54%. Trade receivable are below 10% of total sales which is very good. Issue is priced at a P/BV of 2.12 on the basis of its NAV of Rs. 15.56 as on 31.03.18 and at a P/BV of 1.47 on the basis of post issue NAV of Rs.22.42. If we annualise latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 10 against industry average of 12. Thus issue appears fully priced. As per RHP company has shown Coal India and GMDC as listed peer and these stocks is trading at P/E of 12 and 6. There companies are not strictly comparable as Anmol is in trading business and larger size of peers. On BRLM's front, for Share India Capital Services Private Limited this is the 1st IPO in last three fiscals. Company has shown good results in last three fiscals, RoNW is 17.54% and issue looks fully priced with respect to current earnings. There is good potential for growth in Coal trading as there is still very huge demand for Coal in India, but as Government is more inclined toward Environment friendly energy source, so in coming years we may see decline in Coal demands. There is no track record of BRLM. So we give NEUTRAL rating to this SME IPO.

• 1 Mr. Vijay Kumar
• 2 Mr. Chakshu Goyal