Milton Industries Limited

Started in 1985, Milton Industries Limited is Ahmedabad Gujrat based manufacturer and exporter of Laminates, Artificial Leather cloth and Glass Fibre Reinforced Epoxy (GFRE) Sheets. The laminates produced by the company are used on walls, doors, windows, cupboards, tabletops, hotels, cash counters, home kitchen, etc. PVC Coated Fabrics produced by the company are sold to Government Agencies, such as Indian Railways, State Transport Corporation of Different States and also exported to different countries. Milton Industries has two manufacturing units in Mehsana and Sabarkantha, both located in Gujrat. The development process includes design, development, testing, manufacturing and delivery of the products. On performance front, MIL has reported turnover/net profits of Rs. 45.46 cr. / Rs. 0.74 cr. (FY14), Rs. 42.28 cr. / Rs. 0.63 cr. (FY15), Rs. 42.03 cr. / Rs. 0.22 cr. (FY16) and Rs. 43.63 cr. / Rs. 1.15 cr. (FY17). Thus while its top line has remained almost constant, its bottom line has seen roller-coaster ride. It has posted an average EPS of Rs. 0.67 and average RoNW of 5.81% for last three fiscals on an equity base of Rs. 5 crore. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of 45 plus against industry average of 38 making it aggressively priced offer. Cost of acquisition of shares by promoters ranges from Rs. 4 to Rs. 12. On merchant banker’s front, this is the 7th mandate from its stable and last five listings have given between 4 to 25% gains on the day of listing. As per financials, company's top line is almost constant and bottom line up down during FY14 to FY17, RoNW is 5.81% for last three fiscals and issue is aggressively priced. So we give AVOID rating to this SME IPO.

• 1 Mr. Vijay Pal Jain
• 2 Mr. Ajay Mahipal Singh Jain
• 3 Mr. Abhaykumar Mahipalsingh Jain
• 4 Mr. Vikas Jain
• 5 Mr. Sanket Jain