Started in 1992, Vinny Overseas Limited is Ahmedabad Gujarat based company, engaged in the processing of fabrics for shirting, suiting and dress materials through manufacturing process of weaving, dyeing, printing and finishing. Company procures Grey Fabric from the domestic market and further dyes the same as per the client's requirements on the basis of quality of the fabric, sizing requirements etc. Company is also engaged in Job-Work for wholesale cloth merchants and also trade in grey cloth as per the order received from the customer. The processing unit is located at Isanpur Road, Narol, Ahmedabad in Gujarat, on approximately 27,000 square yard of land which comprises of dyeing, printing and finishing processing with a capacity of processing of approx. 4,00,00,000 meter per annum with capacity utilisation for FY18 around 95.71%. Company plans to increase processing capacity and take it to around 6,50,00,000 meter per annum in FY21 with 97% utilisation aim. The unit has the capacity to print, dye and process wide range of fabrics i.e. cotton, polyester, viscose and man-made & blended fabrics suitable for men's wear, women's wear, home furnishing and many other applications. The products offering can be largely classified into Shirting Fabrics, Shooting Fabrics, Polyester Fabrics, Dress Materials and Cotton Fabrics. In FY18, company exported the products to five countries viz. United Arab Emirates (UAE.), Sri Lanka, Iraq, Bahrain and Panama City. Revenue from Export Market constitutes approx. 6.20% of the total revenue. As on June 30, 2018, company has 76 employees on payroll and 143 contract workers. As per the financial performance, VOL has posted total revenue/net profits of Rs. 80.59 cr. / Rs. 0.67 cr. (FY14), Rs. 87.35 cr. / Rs. 0.98 cr. (FY15), Rs. 98.30 cr. / Rs. 1.11 cr. (FY16), Rs. 98.34 cr. / Rs. 1.70 cr. (FY17) and Rs. 130.54 cr. / Rs. 3.08 cr. (FY18). Company has show sudden increase in top-line and bottom-line for FY18. Trade receivables are around 19% of total revenue in FY18. As per company average credit period for customers is 2.29 months and company will bring it down to 2.19 months. Issue is priced at a P/BV of 1.39 on the basis of its NAV of Rs. 28.87 post issue. For last three fiscals, it has posted an average EPS of Rs. 3.47 and an average RoNW of 15.48%. If we take into account latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 12 and as per RHP industry average P/E is 57. So issue looks reasonably priced. On BRLM's front, for Pantomath Capital Advisors Private Limited this is the 83rd IPO. From last 10 IPOs, 1 at par and remaining above issue price with 1 to 10% premium. As of now, from last 10 IPOs, 4 are trading below issue price and remaining above issue price. ( As on 24.09.18 ) As per financials, company's performance is good, RoNw is 15.48% for last three fiscal and issue is reasonably priced as per latest earnings. If company can maintain FY18 performance and delivery growth as per projection, than it's good investment for long term. Performance of BRLM is poor after listing in recent past. So we give NEUTRAL rating to this SME IPO as per current market situation.
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