Maruti Interior Products Limited

Maruti Interior Products Limited is engaged in manufacturing and Domestic sale & Export of modular kitchen storage system, Aluminium long wardrobe handle & profile handle. They have wide range of product offerings for different customer segments. The Brand 'Everyday Kitchen' is focused towards economic range and the other brand 'Spitze by Everyday' is offering premium products. They also manufacture products for other companies on OEM basis. They have an inhouse team of designers who look after, product development and quality control. All products manufactured by MIPL are designed in house  and tested to maintain the product quality standards. Their factory is spread across approx 1,00,000 sq.ft. in Gujarat. MIPL has established marketing and distribution network across India. Currently they have total 300+ dealers and 25+ distributors PAN INDIA. Further they have online presence selling direct to customers via online ecommerce platforms like Amazon and flipkart. Looking at online market growth in India, they have a firm business plan to expand the online sales. With ecommerce they eye to reach out direct to customers, As Do it yourself (DIY) concept is growing India, They have developed DIY product range. This DIY products come with easy installation guide and video helping end users in assembling the product. As per financial performance, MIPL has posted total income/net profits of Rs 11.85 Cr / Rs 0.98 Cr (FY19), Rs 18.18 Cr / Rs 2.28 Cr (FY20), Rs 15.23 Cr / Rs 1.54 Cr (FY21) and Rs 11.47 Cr / Rs 1.64 Cr (FY22). So Company has Posted zigzag results and it looks due to current pandemic situation. Company has posted an average EPS of Rs 3.05 and average RoNW of 19.12% for last three fiscals. Issue is priced at a P/B of 1.82 as per NAV of Rs 30.15 post issue. As Per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 26.88 and as per annualised FY22 earnings P/E is 12.59. As per RHP there are no listed peers.     On BRLM's front, ISK Advisors private Limited is associated with this IPO, and have handled around 1 IPO in last three fiscals which opened above issue price and as of now, trading below issue price. ( As on 24.01.22) As per financials, MIPL has shown zigzag result, RoNW is 15.26% and P/E is respectively 27 and 13 as per FY21 and annualised FY22 earnings, which looks fully priced. Home decor segment is doing well and expected to grow at good rate, so company has good growth opportunity but competition also very high. Performance of BRLM is poor post listing. So we are giving NEUTRAL rating to this IPO and risk taking investors may apply for short to medium term.

• 1 Mr. Paresh P. Lunagaria
• 2 Mr. Purshotam R. Lunagaria