B&B Triplewall Containers Limited

Started in 2011, B&B Triplewall Containers Limited is Bengaluru based company engaged in manufacturing of corrugated boxes and corrugated sheets. Company mainly caters to packaging industry. Currently company is operating in domestic markets with the products being supplied on PAN India basis. However, the majority revenue is from the state of Karnataka. The manufacturing facilities are divided into two units. Unit I is located at Bangalore, Karnataka and Unit III is situated at Shoolagiri (Krishnagiri), Tamil Nadu. Both the units are engaged in manufacturing of corrugated sheets and boxes. Company has total installed capacity of 78,000 Tonnes in FY18 with capacity utilisation of around 52%. So there is ample growth opportunity without further expansion. As on the date of this Prospectus, company has 234 employees on payroll. The product Corrugated Boxes is used by various industries like FMCG, E-commerce etc for packaging purpose. As per financial performance, Company has posted total income/net profits of Rs. 31.62 cr. / Rs. 0.67 cr. (FY14), Rs. 45.04 cr. / Rs. 1.27 cr. (FY15), Rs. 101.76 cr. / Rs. 1.93 cr. (FY16), Rs. 101.95 cr. / Rs. 1.63 cr. (FY17) and Rs. 166.97 cr. / Rs. 4.57 cr. (FY18). So company has shown consistent growth but it shown set back in FY17 and then sudden rise in top-line and bottom-line which is very surprising. Trade receivables are around 11% of FY18 total revenue. For last three fiscals it has posted an average EPS of Rs. 38.29 and an average RoNW of 15.31%. Issue is priced at a P/BV of 0.59 on the basis of NAV of Rs. 61.13 as on 31.03.18. If we consider latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 16 and peers are trading at P/E of around 15. So issue looks fully priced with respect to current earnings. On BRLM's front, for Gretex Corporate Services Private Limited this is the 16th IPO. From last 10 IPOs, 2 listed below issue price, 3 at par and remaining above issue price. As of now, from last 10 IPOs, 5 are trading below issue price and remaining above issue price. ( As on 26.09.18 ) Company has shown growth over the years, RoNW is 15.31% for last three fiscals and issue looks fully priced with respect to current earnings. If company can maintain the bottom-line with same margins that need to be watched. The company is working at 52% capacity utilisation, so there is good scope for growth without further expansion. Also this industry is highly competitive, but its not dependent on any one industry and so there is good scope for growth in complete packing industry. Performance of BRLM is poor. So we give NEUTRAL rating to this SME IPO.

• 1 Mr Manish Kumar Gupta
• 2 Mr Alok Agarwal
• 3 Mr Ravi Agarwal
• 4 Mr. Manish Bothra
• 5 Mr. Amit Agarwal
• 6 Mr. Sidharth Agarwal
• 7 Mr. Nishant Bothra