Bulkcorp International Limited

Bulkcorp International Limited is engaged in manufacturing and supply of Food Grade Flexible Intermediate Bulk Container ('FIBC') bags. The manufacturing unit of the Company is situated at Changodar, Ahmedabad. They offer a wide range of customisable packaging solutions FIBC bags (Jumbo Bags) which come in eight variations and container liners.  The company has expanded its installed capacity by installing new machineries at the premises adjacent to the existing manufacturing facility. Post expansion, installed capacity of the company manufacturing facility has doubled from 2400 MTPA to 4800 MTPA. Company caters to the requirements of crucial industries such as agriculture, chemical, construction, food, pharmaceutical, and mining. The customer base is spread across the globe with presence in countries like United States of America, Canada, United Kingdom, South Africa, Ivory Coast, South Korea, Spain, Europe, Egypt etc. They are recognised as one star export house by Ministry of Commerce and Trade. The majority of the sales are through exports which contributed 68.42%, 75.88%, 72.93%, and 77.56% respectively to the total sales for the year ended on March 31, 2024, 2023, 2022 and 2021 respectively. As per financial performance, Bulkcorp International Limited has posted total income / net profits of Rs 31.76 Cr / Rs 0.63 Cr (FY21), Rs 49.19 Cr / Rs 1.72 Cr (FY22), Rs 38.95 Cr / Rs 1.21 Cr (FY23) and Rs 46.50 Cr / Rs 3.55 Cr (FY24). So as per previous financials data, company has shown zig-zag results. Company has posted an average EPS of Rs 4.01 and average RoNW of 35.89% for last three fiscals. Issue is priced at a P/BV of 6.22 as per NAV of 16.87 as on 31.03.24. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 45.72, 65.09 and 22.17 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Swastika Investmart Limited is associated with this SME IPO and handled 10 IPOs in last 3 years. From last 10 IPOs, two opened below issue price and remaining above or at par on the day of listing. As of now from last 10 IPOs, six are trading below issue price and remaining above issue price. ( As on 26.07.24 ) As per financials, Bulkcorp International Limited has shown zig-zag results, RoNW is 38.10% and P/E is respectively 45.72, 65.09 and 22.17 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced. Company is engaged in manufacturing and supply of Food Grade Flexible Intermediate Bulk Container ('FIBC') bags, which is highly fragmented and competitive business segment. Performance of BRLM is poor post listing. So, we give NEUTRAL rating for this IPO. One may apply for listing gains. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Punit Mahendra Gopalka
• 2 Mr. Anup Mahendra Gopalka
• 3 Mr. Sanjay Pandurang Sadavarte