Incorporated in 2002, Rex Pipes and Cables Industries Limited is engaged in the trading and production/manufacturing product range encompassing uPVC pipes, HDPE pipe, Cables, fittings and abundance of accessories under the brand name "REX". The brand "REX" is the hallmark showcasing the entire Product range. It has just taken a little over two decades for The Rex group of Industries to emerge as one of India's leading manufacturers in the field of PVC Pipes & Fittings and PVC insulated electrical wires. The company produces excellent Three Core flat cables , Single Core Flexible Home wire , Poly Wrapped Winding wire along with UPVC, HDPE and sprinklers with unique skills, continuous technological upgrading machines, professional management testing and persistent dedication without compromising on quality leading the entire organization to National and International name and reputation. Rex Pipes And Cables Industries Limited has emerged into a national entity as a complete innovation for its own type of manufactured products. The company offer a wide range of PVC pipes, HDPE pipe, Cables classified in a systematic manner to ensure easy and accurate selection, with the simultaneous advantage of providing the most cost-effective solutions for customers. The company have established itself as an innovative leader and quality manufacturer by continuously upgrading its technology, modernizing manufacturing facilities and maintaining highest standards of quality and services. Applications area of company's products are (i) Agriculture, (ii) Power, (iii) Construction and (iv) Engineering. The company Company has set up a plant for manufacturing of bus body and fabrication of bus bodies with a capacity of 600 buses per year.The Plant, designed with the flexibility to manufacture all types of vehicles, ranging from automobiles to trucks and from minivans to busses, is located 2 km away from the Palsana city and 5 km away from Palsana NH52 tole tax, and occupies a closed area of 6 thousand and a total area of 9 thousand square meters approximately. The Plant carries out the cutting, perforating, bending and welding of raw material profiles, as well as the manufacture of frame fixtures and complete panels. The frames are then fitted, completing the manufacture of the vehicle body. Rex Coaches offers a wide Product Range covering various applications for passenger transport industry mainly, City buses (low floor, semi-low floor), Inter-city coaches, School buses, Executive buses, Customized Vanity van, Shipping containers (20,25 and 40 FT), Commercial road containers and Commercial loading trucks. On the financial performance front, Rex reported turnover/net profits (loss) of Rs. 35.16 cr./ 1.27 cr. (FY18), Rs. 37.74 cr./ 1.30 cr. (FY19), Rs. 32.06 cr. / Rs. 0.77 cr. (FY20), Rs. 44.36 Cr. / Rs. 1 Cr. (10M FY21). So company has shown zig-zag results. For the last three years, company has posted average EPS of Rs. 1.67 and RoNW of 10.80%. The issue is priced at a P/BV of 1.27 based on its NAVs of Rs. 20.54 post issue. As per FY20 earnings and on post issue equity, IPO is valued at P/E of around 28.85 and for FY21 annualised then PE of around 18.5, which looks fully priced. Comparison between listed peers is shown in above table. On BRLM's front Navigant Corporate Advisors Private Limited Pvt. Ltd. has handled 19 IPOs in last three fiscals. From last 10 IPOs, 1 is opened below and remaining are opened above issue price. As of now from 10 IPOs, 5 is trading below and remaining are trading above issue price. ( As on 27.07.21 ) For Rex Pipes and Cables Industries Limited, financials are zigzag, RoNW is 7.44%, P/E is around 18.5 for FY21 annualised earnings. So issue looks fully priced. Performance of BRLM is average. So we give NEUTRAL rating to this SME IPO.
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