Nakoda Group of Industries Limited

Started in the year 2013, Nakoda Group of Industries Limited, based on Nagpur - Maharashtra, is engaged in manufacturing of tutti fruity (Diced Chelory) also called as "Papaya Preserve" and canned fruit cubes which comes under the category of bakery products. The company is also engaged in the processing of almonds and trading of sesame seeds, clove, cut peel murabba, karonda, daalchini and toor daal. As on March 2017, the company's revenue from almond processing consists of 45.93%, manufacturing of tutti fruity consists of 23.92% and from trading consist of 30.14%. Out of the total revenue generated from manufacturing of Tutti Fruity i.e. 553.58 lakhs, 61.36% is generated from Exporting to London, Malaysia, Dubai, Saudi Arab and 38.64% is from the domestic sale. On 18 July 2016, Nakoda Group of Industries Limited took over the running business of M/s. Navkar Processors the sole proprietorship concern of the promoter Pravin Choudhary and subsequentlythe business of this proprietorship concern was merged into the Company. Two manufacturing units of the company is located in Nagpur. At Unit-I, manufacturing of canned fruit cubes is carried out and at Unit-II, processing of almonds is done. The company has 16 employees at the Registered Office and Manufacturing Unit. As NGIL took over a business of proprietary concern in July 2016 and merged with it, so financial data of short period available. For FY 17 it posted a turnover of Rs. 23.79 cr. with a net profit of Rs. 0.48 cr. For upto Q3 of FY18, it earned net profit of Rs. 0.99 cr. on a turnover of Rs. 43.95 cr. As per offer documents, for last three fiscals it has posted an average EPS of Rs. 1.23 and an average RoNW of – (1.87%). Issue is priced at a P/BV of 1.85 based on post issue NAV of Rs. 18.91. If we annualise latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 18. It has no listed peers to compare with. So with current market situation, it looks fully priced. On BRLM's front, for Pantomath Capital Advisors Private Limited, this is the 66th IPO since last three fiscals and out of recent 10 listings, 1 listed at par and remaining with 1% to 40% premium on the day of listing. As of now from last 10 IPOs, 6 are trading above issue price and remaining below issue price or at par. So track record of BRLM is good. As per financials, company's performance is good, RoNW is -(1.87)% for last three fiscals and issue is fully priced as per latest earnings. Company is in business of food processing and its expected to grow with good rate as Government is very supportive to this industry. So, We give NEUTRAL rating to this SME IPO as per the current market condition.

• 1 Mr. Pravin Choudhary
• 2 Mr. Jayesh Choudhary