Started in 1993, ICE Make Refrigeration Ltd is Ahmedabad, Gujarat based manufacturer of refrigeration equipment under the brand of 'Ice Make'. Company provide cooling solutions for cooling systems and accessories used in industries such as dairy, ice-cream, food processing, agriculture, pharmaceuticals, cold chains, logistics, hospital, hospitality and retail, among others. IMRL classifies its business into the following 4 verticals:(i) Cold Room(ii) Commercial Refrigeration(iii) Industrial Refrigeration and(iv) Transport Refrigeration. IMRL's top 5 products are: (i) Cold Room (ii) Commercial Freezer (iii) Chiller (iv) Refrigerated Vehicle and (v) Ice Cream Hardener. In December 2016, IMRL had acquired 'Bharat Refrigerations Private Limited', a company based in Chennai, engaged in a business similar business, which is now its wholly owned subsidiary. The manufacturing facilities of Company are located at Dantali, Gujarat and the manufacturing facilities of its Wholly Owned Subsidiary are located at Chennai, Tamil Nadu. Company's dealers and associates are present in the cities of Bikaner, Cochin, Cuttack, Goa, Hubli, Jodhpur, Kolhapur, Kolkata, Nagpur, Patna, Pune, Pondicherry,Trivandrum, Kathmandu and Colombo. Their customers include leading and reputed names across each industry like Amul, Haldiram Bhujiawla Limited, Havmor Ice Cream Limited, Himalayan Food Park Private Limited, Kitchen Xpress Overseas Limited, Sankalp Recreation Private Limited, Sri Srinivasa Dairy Products Private Limited, TGB Banquets & Hotels Limited, Tirumala Milk Product Private Limited, Urmin Products Private Limited, Vadilal Industries Limited, Vimal Dairy Limited, etc. On performance front, while on standalone basis it reported continuous growth in top and bottom lines that went up from Rs. 39.26 crore and Rs. 0.89 crore in FY14 to Rs. 87.88 cr. and Rs. 5.11 cr. in FY17. For Q1 of current fiscal, it has posted net profit of Rs. 1.47 crore on a turnover of Rs. 23.05 crore. On consolidated basis it has posted net profit of Rs. 5.09 crore on a turnover of Rs. 88.24 crore for FY17 and net profit of Rs. 1.41 crore on a turnover of Rs. 23.08 crore. It has reported an average EPS of Rs. 3.12 and RoNW of 26.99% for last three fiscals on standalone basis on an equity base of Rs. 11.51 crore. On consolidated basis it has posted an EPS of Rs. 4.42 for FY17 and RoNW of 32.91%. If we annualize latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 15. Issue is priced at a P/BV of around 3.88 based on NAV as on 30.06.17. As per offer documents, it has no listed peer to compare with. From FY13 to FY17, it has reported CAGR of 21% in top line, 40% in EBIDTA and 58% in PAT. Management is confident that performance will improve after coil plant going on stream. As no peers available, so its difficult to judge price, but when we compare with Nifty average PE, then it looks reasonably priced. On merchant banker's front, this is the first mandate for SME platform from its stable. It brought a main board IPO of Capacit'e in Sept. 2017 that opened at a premium to offer price on the day of listing. As per financials, company's growth is very good, RoNW is 32.91% for FY17 and issue is reasonably priced as per latest earnings. Company is proving cooling solutions and with development food processing industry future for this company looks bright and company expected to grow at same rate, so we give "RECOMMEND" rating to this SME IPO.
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