Started in 2003, Rajshree Polypack Limited is Thane based company engaged in the business of manufacturing plastic packing products. It is one of the leaders in manufacturing of rigid plastic sheets and thermoformed packaging products (as per CARE Advisory Report, July 2018). Company's products range are yoghurt & ice cream containers, food packing, QSRs, coffee cups, bakery products and confectioneries, beverage cups & containers, generic bowls, punnets & trays for fruits and vegetable packing, lids etc. RPL has a diversified range of products that cater to the dairy, beverages, FMCG, QSR, retail, pharmaceuticals and the electronics sector. In specific terms, products of companies are cups for cheese, yoghurt & curd, ice cream and desserts, packaging of juice, beverages and water, rectangular meal trays, trays for sweets and confectionaries, generic bowls, rectangular hinged containers, clear cups – PET, clear cups – PP, plates and barrier PP products. Presently, RPL operates out of three manufacturing facilities: (a) Factory Unit – I is located at Survey No. 37/2, Plot No. 32 and 33, Silver Industrial Estate, Village Bhimpore, Daman- 396 210; (b) Factory Unit – II is located at Plot No. 370/2(3), Near PSL, Vapi Road, Village Kachigam, Daman- 396 210, and (c) Factory Unit – III is located at Survey No. 184/1 (39), Panchal Industrial Estate, Village Bhimpore, Daman - 396 210. Factory Unit I and II are owned by the Company, and Factory Unit III has been taken on lease. The manufacturing facilities are equipped with various machines for extrusion, thermoforming, printing, sleeving, vast collection of moulds, dies & tools and other ancillary machines. Currently company has consolidated capacity of 10,200 MT per year Extrusion, 4320 MT per year Thermoforming, 5148 lakh pieces per year Printing and 1275 lakh pieces per year Sleeving and company is operating at 82.84%, 77.57%, 78.25% and 88.85% capacity utilisation. RPL intends to set up another facility, 'Factory Unit – IV' which will undertake manufacturing of rigid plastic sheets and thermoformed packaging products. The Company has entered into a Lease Deed with Gagan Packaging Private Limited to occupy the premise located at Survey no. 370/2, Village Kachigam, Nani Daman for a period of sixteen (16) years nine (9) months. Its expected that new facility will become operational from October 2019. As on June 30, 2018, company had 427 full time employees and 67 contract employees. As per the financial performance, RPL has posted turnover/net profits of Rs. 39.01 cr. / Rs. - (0.04) cr. (FY14), Rs. 65.06 cr. / Rs. 0.72 cr. (FY15), Rs. 95.66 cr. / Rs. 7.83 cr. (FY16), Rs. 96.43 cr. / Rs. 8.87 cr. (FY17) and Rs. 112.50 cr. / Rs. 9.31 cr. (FY18). Thus it has posted gradual growth in top and bottom lines. Issue is priced at a P/BV of 2.05 on the basis of its NAV of Rs. 58.91 as on 31.03.18. For last three fiscals, it has posted an average EPS of Rs. 11.21 and an average RoNW of 21.60%. If we take into account latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 15 against industry composite of 30. So issue appears fully priced. On BRLM's front, for PL Capital Markets Private Limited this is the 1st IPO in last three years. As per financials, company's performance is very consistent, RoNw is 21.60% for last three fiscal and issue is fully priced as per latest earnings. Company is in business of plastic packing products and it caters to number of industries, so its expected that company may grow at same rate, but the controversy on usage of plastic and ban by many states may be risk for future growth. This is first IPO from the BRLM. So we give NEUTRAL rating to this SME IPO as per current market situation.
✍️ Post a Comment