Started in 2010, Taylormade Renewables Limited is primarily engaged in providing renewable energy solutions. Company's specialisation is in manufacturing of Solar Parabolic Concentrating Systems for steam generation used in steam cooking and other industrial application, director in-direct heating, including solar air-conditioning, and solar space heating, solar drying, solar waste water evaporation and many more applications requiring thermal energy. Company uses parabolic static focus and moving focus technology that concentrate solar radiation by automatically tracking the sun and using the thermal energy. The advantage of using this technology is, it is risk free, safe, and indigenous and this system can be run by any person without using much skill. Company is also the manufacturer of solar dish cooker, solar box cooker, solar dryer, biomass cook stoves and biomass gas fiers, air source heat pumps, solar thermic fluid cooking system, evacuated tube collectors with and without CPC reflector. In the year 2017, the company shifted its manufacturing unit from Valsad to its present location situated at Kerala Industrial Estate, Bavla, Ahmedabad which is spread over to an area admeasuring 1710.00 sq. mtrs. As on March 15, 2018, the company has 54 employees to look after its business operations, production and factory management. On financial performance front, TRL has ported turnover/net profits of Rs. 1.08 cr. / Rs. 0.01 cr. (FY13), Rs. 2.45 cr. / Rs. 0.03 cr. (FY14), Rs. 8.41 cr. / Rs. 0.03 cr. (FY15), Rs. 12.11 cr. / Rs. 0.07 cr. (FY16) and Rs. 18.19 cr. / Rs. 0.45 cr. (FY17). For upto Q3 of FY18, it has earned net profit of Rs. 1.29 cr. on a turnover of Rs.18.97 cr. For all these fiscals while top line has shown remarkable growth, bottom line remained static and under pressure till FY16. There is sudden jump in net profit in FY17 and FY18, which is surprising. For last three fiscals it has posted an average EPS of Rs. 4.17 and an average RoNW of 26.51%. Issue is priced at a P/BV of 1.83 on the basis of its post issue NAV of Rs. 19.17. If we annualise latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 20. It has no listed peers to compare with as per RHP. On merchant banker's front, this is the 26th IPO in last three fiscals. Out of last 10 listings, 1 opened at discount to offer price, 1 at par and the rest eight with a premium ranging from 2.6% to 20% on the day of listing. As per financials, growth in top-line is very good, but bottom-line remained almost static till FY16, RoNW is 26.51% for last three fiscals and issue is reasonably priced as per latest earnings. But, there is sudden jump in bottom-line for FY17 and FY18, which is very surprising. So we give NEUTRAL rating to this SME IPO as per current market scenario.
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