Mamata Machinery Limited manufactures and exports plastic bags and pouch making machines, packaging machines and extrusion equipment. They provide end-to-end manufacturing solutions for the packaging industry. They primarily sell the packaging machinery to direct consumer brands catering to the FMCG, Food, & Beverage Industry and bag and pouch making machines to convertors and service providers who, in turn, mainly catering the FMCG and consumer industry. The machineries are also utilised in non-packaging applications, such as e-commerce bags and garment packaging bags. The customers include Balaji Wafers Private Limited, Dass Polymers Private Limited, Jflexy Packaging Private Limited, Euphoria Packaging Private Limited, Sunrise Packaging, Om Flex India, Chitale Foods, V3 Polyplast Private Limited, Dhalumal Packaging Industries LLC, Laxmi Snacks Private Limited, Ganges Jute Private Limited, Western India Cashew Company Private Limited and N. N. Print & Pack Private Limited, Gits Food Products Private Limited, Emirates National Factory for Plastic Ind LLC, Dhwani Polyprints Private Limited, Kamakshi Suedpack Private Limited, Bansal Industries and Hershey India Private Limited. Company supply machinery and equipment through a global sales network, and, as of September 30, 2024, in addition to the sales and corporate office, they have two international offices located in Bradenton, Florida, USA and Montgomery, Illinois, USA, as well as sales agents in over 5 countries across continents, including regions such as Europe, South Africa and Asia. Company offers comprehensive range of products serving the entire flexible packaging market value chain covering:(a) Bag and pouch making machines – which converts roll of plastic films into bags and pouches;(b) Packaging machines – which are used to fill the end products into pouches categorised as horizontal formfill and seal machines (“HFFS”), vertical form fill and seal machines (“VFFS”) and pick fill seal machines (“PFS”) for smaller volume requirements;(c) Co-extrusion blown film machines – which are used for processing various polymer granules into co-extruded multilayer films. The films may have mono layer, three, five and seven layers. Company sells the machines under the brand name 'Vega' and 'Win'. As of September 30, 2024, they have installed over 4,500 machines in 75 countries around the world. Company operates two machine manufacturing facilities, one in India and one in the USA. In India, the manufacturing facility is located on Sarkhej - Bavla Highway, Sanand, Ahmedabad, Gujarat, with a total area of about 20,662 square meters and an in-house electronic department, demo/exhibition centre and a fully equipped paint shop. The manufacturing facility in the USA is located in Bradenton, Florida, and it focuses on product applications, design and development of machines, and customisation of the machines sold in the USA. As per financial performance, Mamata Machinery Limited has posted total income / net profits of Rs 196.57 Cr / Rs 21.70 Cr (FY22), Rs 210.13 Cr / 22.51 Cr (FY23), Rs 241.31 Cr / Rs 36.13 Cr (FY24) and Rs 29.19 Cr / 0.22 Cr (Q1 FY25). So as per previous financials data, company has shown steady growth. Company has an average EPS of Rs 11.48 and average RoNW of 23.08% for last three fiscals. Issue is priced at a P/BV of 4.5 as per NAV of Rs 53.98/- as on 30.06.24. If we attribute latest earnings of FY23, FY24 and annualised FY25 on equity post issue, then asking price is at a P/E of around 26.57, 16.55 and 159.03 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Beeline Capital Advisors Private Limited is the lead manager of the IPO and has handled around 51 IPOs in last three fiscals. From last 10 IPOs, all opened 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 as on date. ( As on 18.12.24 ) As per financials, Mamata Machinery Limited has shown steady growth, RoNW is 32% and P/E is 26.57, 16.55 and 159.03 respectively as per FY23, FY24 and annualised FY25 earnings, so issue looks fairly priced. Company manufactures and exports plastic bags and pouch making machines, packaging machines and extrusion equipment. 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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