Inox India Limited is the largest supplier of cryogenic equipment in India by revenue in Fiscal 2023. They have over 30 years of experience offering solutions across design, engineering, manufacturing and installation of equipment and systems for cryogenic conditions. The offering includes standard cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment and solutions as well as large turnkey projects which are used in diverse industries such as industrial gases, liquified natural gas ('LNG'), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals and construction. In addition, they manufacture a range of cryogenic equipment utilised in global scientific research projects. They also were the largest exporter of cryogenic tanks from India in terms of revenue in Fiscal 2023. Company’s business comprises of three divisions: Industrial Gas: This division manufactures, supplies and installs cryogenic tanks and systems for storage, transportation and distribution of industrial gases like such as green hydrogen, oxygen, nitrogen, argon, carbon dioxide (CO2), hydrogen and provides after-sales services. The storage tank offering includes stationery storage tanks from 1,000 litres to one million litres capacity, portable storage tanks from 1 litre to 1,000 litres capacity and transport tanks and tankers/trailers up to 60,000 litres capacity. The product line also includes vaporizers of various types and skid mounted piping skids for pumping and re-gasification. LNG: This division manufactures, supplies and installs standard and engineered equipment for LNG storage, distribution and transportation as well as small-scale LNG infrastructure solutions suitable for industrial, marine and automotive applications; and The LNG Division designs, manufactures and installs standard and engineered solutions for LNG and liquid compressed natural gas ('LCNG') including static storage tanks up to one million litres capacity, transport trailers, LNG satellite stations for industrial users, marine fuel tanks, LNG and LCNG fuel stations and LNG vehicle fuel tanks. In the LNG tank segment, They have supplied over 60% of the tanks in both the stationary tank segment which includes all LNG applications including LCNG stations and trailer mounted mobile LNG tanks in India which have a valid PESO license as of May 4, 2022. Cryo Scientific: This division provides equipment for technology intensive applications and turnkey solutions for scientific and industrial research involving cryogenic distribution. The activities are focused on customized cryogenic storage and distribution systems for space research, cryogenic fuel filling systems for launch pads, space simulation chambers, vacuum jacketed piping and cryostat for magnetic resonance imaging ('MRI') magnets. They are also engaged as one of the few Indian companies in the International Thermonuclear Experimental Reactor ('ITER') project, which is an international nuclear fusion research and engineering mega project. Further, in the six months ended September 30, 2023 and in Fiscal 2023, Fiscal 2022 and Fiscal 2021, They exported the products and delivered the services to 66 countries. Some of the key geographies for the products and services include the United States, Saudi Arabia, the Netherlands, Brazil, Korea, United Arab Emirates, Australia and Bangladesh. Company has three manufacturing facilities located at (i) Kalol in Gujarat, (ii) the Kandla Special Economic Zone ('Kandla SEZ') in Gujarat and (iii) Silvassa in the Union Territory of Dadra and Nagar Haveli. In the six months ended September 30, 2023, and in Fiscal 2023, Fiscal 2022 and Fiscal 2021, the installed capacity of cryogenic tanks and related items was 1,550, 3,100, 3,100 and 2,200 Equivalent Tank Units (which are cryogenic storage tanks of 10,000 litres), respectively, and 1.2 million, 2.4 million, 2.4 million and 1.4 million disposable cylinders, respectively. As per financial performance, Inox India Limited has posted total income / net profits of Rs 608.99 Cr / Rs 96.11 Cr (FY21), Rs 803.71 Cr / Rs 130.49 (FY22), Rs 984.19 Cr / Rs 152.71 Cr (FY23) and Rs 579.99 Cr / Rs 103.33 Cr (upto Q2 FY24). So as per previous financials data, company has shown average growth. Company has an average EPS of Rs 14.97 and average RoNW of 26.86% for last three fiscals. Issue is priced at a P/BV of 10.81 as per NAV of 61.06 as on 30.09.23. The order book as on September 30, 2023 was Rs 1036.61/- Cr. If we attribute latest earnings of FY22, FY23, TTM and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 45.90, 39.23, 34.70 and 28.98 respectively, which looks fully priced. As per RHP, there is No listed peers. On BRLM's front, two lead managers are associated with this IPO, and have handled around 93 IPOs in last three fiscals. ICICI Securities Limited : This is 49th IPO from this BRLM. From last 10 IPOs, one opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, three are trading below issue price and remaining are trading above issue price or at par. ( As on 11.12.2023 ) Axis Capital Limited : This is 46th IPO from this BRLM. From last 10 IPOs, one opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, two are trading below issue price and remaining are trading above issue price or at par. ( As on 11.12.2023 ) As per financials, Inox India Limited has average growth, RoNW is 27.79% and P/E is respectively 45.90, 39.23, 34.70 and 28.98 as per FY22, FY23, TTM and annualised FY24 earnings. So, issue looks fully priced. Company is in business of offering solutions across design, engineering, manufacturing and installation of equipment and systems for cryogenic conditions. 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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