Incorporated in 2002, Shyam Metalics and Energy Limited is India's leading Integrated metal producing company. Company primarily produce intermediate and long steel products, such as, iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys products with a specific focus on high margin products, such as, customised billets and specialised ferro alloys for special steel applications. Company currently operate three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. As of December 31, 2020, the aggregate installed metal capacity of company's manufacturing plants was 5.71 million tonne per annum (“MTPA”) (comprising of intermediate and final products). Company's manufacturing plants also include captive power plants with an aggregate installed capacity of 227 MW, as of December 31, 2020. Company are also in the process of increasing the capacities of company's existing manufacturing plants and captive power plants, which is expected to increase company's aggregate installed metal capacity (comprising of intermediate and final products) from 5.71 MTPA, as of December 31, 2020, to 11.60 MTPA and captive power plants aggregate installed capacity from 227 MW, as of December 31, 2020, to 357 MW. These proposed expansions are expected to become operational between Fiscal 2022 and Fiscal 2025. In addition, company is in the process of commissioning an aluminium foil rolling mill at Pakuria in West Bengal with a proposed installed capacity of 0.04 MTPA, which is expected to become operational in Fiscal 2022. Company's domestic customers include Jindal Stainless Limited, Jindal Stainless (Hisar) Limited, and Rimjhim Ispat Limited. Company's international customers include Norecom DMCC, Norecom Limited, POSCO International Corporation, World Metals & Alloys (FZC), Traxys North America LLC, JM Global Resources Limited, Goenka Steels Private Limited and Vijayshri Steel Private Limited. As of December 31, 2020, company had partnerships with 42 distributors, who stock and sell company's finished products across 13 states and one union territory. As of December 31, 2020, they had a workforce of 11,457 personnel comprised 5,841 permanent employees and 5,616 contract employees for company's operations. As per financial performance, Sona has posted total income/net profits of Rs. 3920.39 cr. / Rs. 521.87 cr. (FY18), Rs. 4684.56 cr. / Rs. 641.75 cr. (FY19) and Rs. 4395.30 cr. / Rs. 340.76 cr. in FY20. For FY21, it has reported net profit of Rs. 460.21 cr. on total revenue of Rs. 3995.65 cr. So company has posted consistent high growth over last couple of years. Company has posted an average EPS of Rs. 18.93 and average RoNW of 17.93% for last three fiscals. Issue is priced at a P/BV of 2.18 as per NAV of 140.63 on 31.12.20. As per FY20 earnings, P/E is around 22.91. If we attribute latest annualised earnings of FY21 on fully diluted equity post issue, then asking price is at a P/E of around 12.72. So issue looks fully priced. As per RHP, comparison between the listed peers are shown in above table. On BRLM's front, five BRLMs are associated with this IPO, and have handled around 77 IPO in last three fiscals. From last 10 IPOs, 2 are opened below issue price and remaining are opened above issue on the day of listing. As of now, all are trading above issue price. ( As on 11.06.2021) As per financials, results are good, RoNW is 17.93% for last three fiscals and issue looks fully priced with respect to current earnings. In current market rally Metal is biggest out-performer and this fancy may continue in near future also. Performance of BRLMs is good. So we give SUBSCRIBE rating to this IPO for listing and short term gains. For Adheshwar Meditex Limited, financial data is declining, RoNW is 10.71%, P/E is around 17.91 for FY20 and if we annualised then PE is around 0.17 for FY21 earnings. So issue looks fairly priced as per FY21 annualised profit, but company can maintain similar margins in future, is very big question. Performance of BRLM is bad. So we give AVOID rating to this SME IPO. As per financials, company's financials almost static, RoNW is 11.62% for last three fiscals and issue is priced at P/E of around 30 as per FY20 earnings and in current year upto 9M of FY21 company has posted losses similar to other real estate companies and also company has very high debt. Currently once again pandemic situation is worsening and this may have more adverse effect on Real Estate sector, which is going from bad phase. So it may take at least 6-9 months to recover and so near future is not so good for this sector. So we giveAVOID
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