Incorporated in 2011, Energy-Mission Machineries (India) Limited design and manufacture CNC, NC and conventional metal forming machines which caters to the industrial sector requirement for metal fabrication solutions. the wide spectrum of metal forming machines includes press brake machines, shearing machines, plate rolling machines, iron workers machines, hydraulic presses and busbar bending, cutting & punching machine. Through the array of products, they provide manufacturers with vital precision machines which are required for metal cutting and forming operations. the machines are utilized across a wide gamut of industries such as automotive, steel, pre-engineered building, furniture, HVAC, agricultural equipments, road construction equipments, elevators, food processing machinery, metalworking workshops and many others. They offer over 600 variants of metal forming machines and during the last 3 Fiscals and the nine months period i.e. Apr.’23 to Dec.’23, the Company has supplied 1657 machines to over 1150 customers. During the last 3 Fiscals and the nine months period i.e. Apr.’23 to Dec.’23, they have sold the products in India and several other countries across the globe which include USA, Switzerland, Russia, Nepal, Kenya, Uganda, UAE, Saudi Arabia and other Middle east countries. they also provide machinery tools and spare parts such as Die punch, Shearing Blade, Roller Set, Holding Spring, Limit Switch, Foot Switch, Seal Kit, Linear Scale etc. which also aids in addressing after-sales support and services. As on March 31, 2024, sales & marketing team comprised of 29 employees managing the designated regions within India. also Sales team is also backed by an after-sales service team of 22 employees who provide the customers with access to maintenance services and spare parts and respond to the customer grievances. They operate through the manufacturing facility in Sanand (District - Ahmedabad), which is situated on a vast land area of over 18,234 sq. mtrs and is equipped with capabilities to design, develop and manufacture the product portfolio. the manufacturing facility has obtained ISO 9001:2015 certification and as on December 31, 2023, they have the capacity to manufacture 900 machines p.a. the manufacturing operations comprise, in addition, to the production lines, CNC Plasma cutting shop, machine shop, heavy fabrication shop, hydraulic Cylinder Shop, hydraulic power pack shop, Electrical Panel wiring, sheet metal shop, shot blasting chamber, paint booth chamber, assembly lines and testing facilities. They are backed by a strong design and development team consisting of 9 employees as on March 31, 2024. Design & Development is a key element of the ability to offer customized products to the customers. It is also a critical aspect of product development, and is integral to the process optimisation which ensures that they continue to fulfil the customized demand of clients across diverse industries. The design and development software used by the team include Cadmate and SolidEdge. the Company has recently launched four roll machines at IMTEX 2024 in Bangalore. Further, they have recently developed an automated material handling system, which can be integrated with the CNC machines, as per the customer’s requirement, through which the material can be fed automatically in the machine. As per financial performance, Energy-Mission Machineries (India) Limited has posted total income / net profits of Rs 48.34 Cr / Rs 0.95 Cr (FY21), Rs 79.06 Cr / Rs 3.36 Cr (FY22), Rs 100.66 Cr / Rs 7.90 Cr (FY23) and Rs 83.99 Cr / Rs 6.74 Cr (upto Q3 FY24). So as per previous financials data, company has shown good growth, but sudden increase in net profit, just before IPO generates some doubts. Company has posted an average EPS of Rs 6.27 and average RoNW of 25.25% for last three fiscals. Issue is priced at a P/BV of 3.80 as per NAV of 36.29 as on 31.12.23. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 46.50, 19.79 and 17.37 respectively, which looks fairly priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Hem Securities Limited is associated with this SME IPO and handled 38 SME IPOs in last 3 year. From last 10 SME IPOs, one opened below and remaining opened above issue price on the day of listing. As of now from last 10 SME IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 04.05.24 ) As per financials, Energy-Mission Machineries (India) Limited RoNW is 33.57% and P/E is respectively 46.50, 19.79 and 17.37 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fairly priced and sudden rise in net-profit is surprising. Company is in business of design and manufacture CNC, NC and conventional metal forming machines which caters to the industrial sector requirement for metal fabrication solutions. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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