Day: March 10, 2021

View – Long & Short Term Investors Can Apply

Issue Highlights

Craftsman Automation Ltd is considered to be among top 5 automation companies in India and is coming with a public offer to raise around INR 824 crores.

Issue Details

Company Strengths

• Strong in-house process & product design capabilities.
• Long term & well established relationships with marquee domestic and global OEMs.
• Wide manufacturing trail; strategically located manufacturing facilities.
• Experienced management team supported by motivated & skilled work force
• Robust financial performance

Valuation

The company is getting listed at a forward FY 21 P/E of 44.4 at upper price band, against sector PE of 61.61. It is getting listed at attractive valuation.

Issue Break-Up

Utilization of Funds

Background highlights of the company in brief

• Incorporated in 1986 as a small scale industry in South India, Craftsman Automation has grown to become a leader in precision manufacturing in diverse fields.
• It is a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments, namely powertrain and other products for the automotive segment (“Automotive – Powertrain and Others”), aluminum products for the automotive segment (“Automotive – Aluminum Products”), and industrial and engineering products segment (“Industrial and Engineering”).
• Craftsman is the largest player involved in the machining of cylinder blocks and cylinder heads in the intermediate, medium and heavy commercial vehicles segment as well as in the construction equipment industry in India.
• The company’s solutions include design, process engineering and manufacturing including foundry, heat treatment, fabrication, machining, and assembly facilities.
• The company’s key products in Powertrain segment includes engine parts such as cylinder blocks and cylinder heads, camshafts, transmission parts, gear box housings, turbo chargers and bearing caps.
• It has its geographical presence in cities including Coimbatore, Chennai, Pune, Indore, Jamshedpur, Faridabad and Bangalore.
• It owns and operates 12 strategically located manufacturing facilities across seven cities in India, with a total built up area of over 1.5 million sq. ft.
• The company’s key customers includes Daimler India, Tata Motors, Tata Cummins, Mahindra & Mahindra, Simpson & Co. Limited, TAFE Motors and Tractors, Escorts, Ashok Leyland, Perkins, Mitsubishi Heavy Industries, John Deere and JCB India.
• The company has a wholly-owned overseas subsidiary, Craftsman Europe B.V., set up in 2008 in Netherlands, through which it is engaged in marketing, sales and servicing of marine engines and other associated equipment used in yachts.
• Its sales volume, in terms of tonnage, from the Automotive – Aluminum Products segment was 9,339.32 tones, 12,596.22 tones, 18,863.83 tones and 11,819.04 tones for the nine months ended December 31, 2020 and Fiscals 2020, 2019 and 2018, respectively.
• The company’s EBITDA Margin was 28.81%, 27.24%, 25.12% and 20.19%, for the nine months ended December 31, 2020 and Fiscals 2020, 2019 and 2018 respectively, having increased at a CAGR of 16.15%, from Fiscal 2018 to Fiscal 2020.

Briefing about directors & key managerial personnel

Briefing Financials

Balance Sheet

Statement of Profit and Loss

Key Ratios

#beelinebroking #IPO #CraftsmanAutomation #CraftsmanIPO #Automation #Engineering #Powertrain #Aotomotive #Aliminum #CommercialVehicles #investing #profit #business #trader #stock #sharemarket #daytrader #daytrading #wealth #stockmarketnews #success #Bse #Nse

Disclaimer: beelinebroking.com/disclaimer.html

View – Long & Short Term Investors Can Apply

Issue Highlights

After its inception in 1984, Anupam Rasayan India has become one of the leading manufacturer of life science related specialty chemicals, and is all set to hit the capital markets.

The issue includes a reservation of up to 220,000 equity shares for subscription by eligible employees, at a discount of INE 55 per share.

Issue Details

Company Strengths

• Strong & long-term relationships with diversified customers across geographies with significant entry barriers
• Diversified and customized product portfolio with a strong supply chain
• Consistent track record of financial performance
• Core focus on process innovation through consistent R&D, value engineering and complex chemistries

Valuation

The company reported its EPS at 6.94, bringing the IPO valuation to a P/E of 79.97 at upper price band, against sector PE of 50.62. Though it is costlier, we are positive towards the issue based on its strong operations and global presence.

Issue Break-Up

Utilization of Funds

Background highlights of the company in brief

• Incorporated as a partnership firm in 1984 as a manufacturer of conventional products, Anupam Rasayan India Limited is one of the leading companies engaged in the custom synthesis and manufacturing of life science related specialty chemicals and other specialty chemicals in India.
• The company has two distinct business verticals: (i) Life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals, and (ii) Other specialty chemicals, comprising specialty pigment and dyes, and polymer additives.
• In FY 20 and in the 6M September 20, revenues from its life science related specialty chemicals vertical accounted for 95.37% and 92.48%, respectively, of its revenue from operations, while revenue from other specialty chemicals accounted for 4.63% and 7.52%, respectively, of its revenue from operations.
• The company has developed strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Co. Ltd., and UPL Ltd. that has helped the company expand its product offerings and geographic reach across Europe, Japan, US and India.
• In the 6M September 20, the company manufactured products for over 45 domestic and international customer, including 15 multinational companies. The Government of India has also recognized the Company as a three star export house.
• The company has a dedicated in-house R&D facility and a pilot plant located at Sachin Unit – 6, which is equipped with laboratories engaged in process development, process innovation, new chemical screening and engineering, which assists in pursuing efficiencies from the initial conceptualization up to commercialization of a product.
• It has expanded its commercialized product portfolio from 25 products in FY 18 to 34 products in FY 20 and 36 products in the 6M September 20.
• As of September 30, 2020, the company operated six multi-purpose manufacturing facilities in Gujarat, with four facilities located at Sachin and two located at Jhagadia and an aggregate installed capacity of 23,438 MT.
• India’s specialty chemicals industry is expected to grow at a CAGR of approximately 10% to 11% over the next five years, due to rising demand from end-user industries, along with tight global supply on account of stringent environmental norms in China.

Briefing about directors & key managerial personnel

Briefing Financials

Balance Sheet

Statement of Profit and Loss

Ratios

#beelinebroking #IPO #AnupamRasayan #AnupanRasayanIPO #LifeScience #Chemicals #SpecialtyChemicals #Dyes #Pigments #Polymer #investing #profit #business #trader #stock #sharemarket #daytrader #daytrading #wealth #stockmarketnews #success #Bse #Nse

Disclaimer: beelinebroking.com/disclaimer.html