Sylvan Plyboard (India) Limited

Started in the year 2002, Sylvan Plyboard (India) Limited is engaged into manufacturing of various wood products such as plywood, block board, flush door, veneer and sawn timber across various grades and thickness. Over the period, after establishing in trading of timber products, they diversified the activities to manufacturing activities by setting up an integrated manufacturing facility in Baidyabati, West Bengal located near Kolkata which is spreading over an area of approx. 11.61 acres (5,05,732 sq. ft.). The Company markets its products under the brand name of 'Sylvan', through its network of Authorized Dealers and Authorized Sub Dealers. As on the date of this Prospectus, the Company has 223 Authorized Dealers present across 13 states. The company supply its products majorly to West Bengal, Odisha, Uttar Pradesh, Maharashtra and Andhra Pradesh. As per financial performance, Sylvan Plyboard (India) Limited has posted total income / net profits of Rs 110.28 Cr / Rs 0.37 Cr (FY21), Rs 172.92 Cr / Rs 3.05 Cr (FY22), Rs 199.15 Cr / Rs 3.52 Cr (FY23) and Rs 161.93 Cr / Rs 4.47 Cr (Upto Q3 FY24). So as per previous financials data, company has shown good growth. But, sudden rise in net-profit is very surprising and trade receivables are nearly 66% of FY24 total sales. Company has posted an average EPS of Rs 2.06 and average RoNW of 3.31% for last three fiscals. Issue is priced at a P/BV of 0.89 as per NAV of 61.69 as on post issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 34.90, 30.20 and 17.84 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Finshore Management Services Limited is associated with this SME IPO and handled 24 SME IPOs in last 3 year. From last 10 SME IPOs, two opened below issue price and remaining above issue price or at par on the day of listing. As of now from last 10 SME IPOs, two are trading below issue price and remaining are trading above issue price. ( As on 18.06.24 ) As per financials, Shivalic Power Control Limited has shown average results, RoNW is 4.00% and P/E is respectively 34.90, 30.20 and 17.84 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit is very surprising. Company is engaged into manufacturing of various wood products, which is highly competitive and fragmented business segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Anand Kumar Singh
• 2 Mr. Jai Prakash Singh
• 3 Mrs. Shakuntala Singh
• 4 Mrs. Kalyani Singh
• 5 M/s. Singh Suppliers Private Limited