TBI Corn Limited is offers a diverse range of products, including cleaned and fat-free Corn Grits/Meal, Corn Flakes, Stone-free Broken Maize & Corn Flour and Turmeric Finger, all manufactured without chemical additives or preservatives and GMO-free. Apart from ISO certifications, they hold certificates from MSME, APEDA, and are both Indian Organic and USDA Organic certified. They have successfully expanded into international markets, serving countries in the Gulf, Sri Lanka, Malaysia, Brunei, Vietnam, South Korea, and soon, Europe and the US. They have expanded to multiple units in MIDC Miraj, occupying a total area of 15,812 SQMT (1,70,200 Sq. ft.) and equipped with modern machinery. The products have a global presence, including UAE, Bahrain, Qatar, Kuwait, Saudi Arabia, Oman, Yemen, Jordan, Israel, Liberia, Sri Lanka, Malaysia, Brunei, Vietnam, South Korea, and plans to venture into Europe and the US. They proudly supply to renowned companies across India. The products cater to the needs of corn starch and cattle feed industries, with potential expansion in this sector. They have dedicated teams for research and development, ensuring continuous innovation and strategic growth. The Company is a trusted name in the corn milling industry, known for its commitment to quality, innovation, and international excellence. With the expanding reach and unwavering dedication, they aim to continue providing good quality corn products to customers worldwide. As per financial performance, TBI Corn Limited has posted total income / net profits of Rs 67.76 Cr / Rs 0.23 Cr (FY21), Rs 100.97 Cr / Rs 0.45 Cr (FY22), Rs 140.42 Cr / Rs 6.86 Cr (FY23) and Rs 101.96 Cr / Rs 7.66 Cr (upto Q3 FY24). So as per previous financials data, company has shown growth, but sudden rise in net-profit just before IPO is very surprising. Company has posted an average EPS of Rs 6,458.91 and average RoNW of 24.41% for last three fiscals. Issue is priced at a P/BV of 3.09 as per NAV of 30.41 as on 31.12.23. 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 378.47, 24.88 and 16,70 respectively, which looks fully priced. As per RHP, there is a no listed peers. On BRLM's front, two lead managers are associated with this SME IPO, and have handled around 8 SME IPOs in last three fiscals. Swastika Investmart Limited is associated with this SME IPO and handled 7 SME IPOs in last 3 year. From last 7 SME IPOs, one opened below issue price and remaining opened above issue price on the day of listing. As of now from last 7 SME IPOs, three are trading below issue price and remaining trading above issue price. ( As on 29.05.24 ) Ekadrisht Capital Private Limited is associated with this SME IPO and handled 1 SME IPOs in last 3 year. From last 1 SME IPOs, that opened above issue price on the day of listing. As of now from last 1 SME IPOs, that is trading above issue price. ( As on 29.05.24 ) As per financials, TBI Corn Limited has shown good growth, RoNW is 42.86% and P/E is respectively 378.47, 24.88 and 16,70 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit just before IPO is very surprising. Company is in business of corn milling, which is highly fragmented and competitive business segment. BRLM performance is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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