Started in 2012, ICL Multitrading India Limited is a multi-product branding and distribution Company based in Noida - UP. Company sells products under the Brand 'ICL'. The major category of products includes consumer products such as spices, tea, suiting-shirting & related accessories, incense sticks (Dhoop), gifting products and other products. Further, company has also entered into herbal products segment and are procuring herbal wellness and cosmetic products from various manufacturers which are being sold through the online platform of 'www.adiherbal.com'. Company gets its products manufactured from third party manufacturers. The products are manufactured as per the requirements and specifications, then packed directly under their brand name by these manufacturers. For Tea, they have established their own sorting and packaging facility located at Bareilly – Uttar Pradesh. They sell two varieties of tea ICL Premium and ICL Gold. Company sells fabric and stitched fabric like suiting, shirting, ties etc. In this segment, they use the sales agents and distributors to sell the products. They also deploy the products with the distributors who in turn sell them to local markets and sellers in small towns of UP, Uttarakhand and Jharkhand. Company is focused primarily on tier 2 and tier 3 places including small towns and tehsil level places. They market the products through the stockiest and distribution network. They had a wide network of 7 warehouses and 17 stockiest as of June 30, 2018. Company has 89 employees including key managerial persons. As per financial performance, Company has posted total income/net profits of Rs. 1.90 cr. / Rs. 0.01 cr. (FY14), Rs. 4.36 cr. / Rs. 0.04 cr. (FY15), Rs. 26.48 cr. / Rs. 0.39 cr. (FY16), Rs. 50.58 cr. / Rs. 1.73 cr. (FY17) and Rs. 57.31 cr. / Rs. 3.06 cr. (FY18). For upto 31.05.18 of FY19, company has posted net profit of 0.58 Cr on total revenue of 9.22 Cr. So company has shown consistent growth. Trade receivables are around 10% of FY18 revenue from operations, which is good. For last three fiscals it has posted an average EPS of Rs. 6.06 and an average RoNW of 51.12%. Issue is priced at a P/BV of 2.48 on the basis of NAV of Rs. 34.29 post issue. If we annualise FY19 earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 17 and as per FY18 earnings P/E is around 19 and So issue looks fully priced with respect to current earnings. As per RPL, Godrej Agrovet Limited, Future Consumers Limited, Hindustan Foods Limited, etc are shown as peers, but there is no point comparing these companies with ICL. On BRLM's front, for Corporate Capital Ventures Private Limited this is the 8th IPO in last two fiscals and from last 7 IPOs, one opened below issue price and other listed with 1% to 40% premium on the day of listing. As of now, from last 7 IPOs, 5 are trading below issue price and remaining above issue price. ( As on 15.11.18 ) Company has shown consistent growth over the years, RoNW is 51.12% for last three fiscals and issue looks fully priced. Company is mainly in multi-product branding and distribution business without any manufacturing plant, so it may grow very rapidly. Focus of the company is Tier 2, Tier 3 and rural part, so it has very less competition. Performance of BRLM is poor after listing. So we give NEUTRAL rating to this SME IPO.
✍️ Post a Comment