detailed analysis:
📌NEW SWAN introduced E-Axle for EV vehicles✅. It is indigenous design suitable for Indian Road conditions. All the components are produced in their state of the Art manufacturing plant with efforts of their strong R&D team.💫
📌📌 ➡️ ➡️
▪️Incorporated in 2014, New Swan Multitech Limited✅(bse code: SWANAGRO) specialises in the manufacture of precision-engineered components and parts for two sectors: the automotive industry and modern farming.
▪️The company's product portfolio for the automotive industry includes assembly engine hangers, hinge body covers, front cover stay components, fuel filler cap components, main stand complete assemblies, engine guard plates, rear brake arm assemblies, separator breathers, cable guide assemblies, battery tray components, and many other parts that are important for two-wheeler vehicles.
▪️For farming, the company manufactures rotovators, seeders, super seeders, weeders, potato planters, potato diggers, fertilizer spreaders, mulchers, puddlers, laser land levellers, disc ploughs and many other agricultural implements.(➡️that cater to different aspects of farming such as soil preparation, sowing, crop management, harvesting and crop residue management.✅)
📌📍In automotive segment, the company supplies most of its products directly to OEMs in finished (machined) condition. In the two-wheeler vertical, it has relationship spanning over 6 years with Honda Motorcycle and Scooter India ("HMSI")🚀, which is largest customer in terms of revenue for Fiscal 2023, over 3 years with MG Motors🚀 to which it supplies passenger car components and over 3 years with Mahindra & Mahindra🚀 to which it supplies agricultural implements.✅
▪️As of September 30, 2023, its product portfolio has over 300 SKU's💫 of agricultural implements and auto components. It also owns 5 design registrations🔥 relating to agricultural implements i.e. Mulcher, power weeder, crop planter, potato harvester and potato planter which are registered with the Patent Office, Government of India.
▪️Within the domain of agricultural implements, its product distribution encompasses an extensive network of over 200 dealers, covering 11 states in India. NSML's reach also extends to supplying agricultural implements to notable OEMs such as Mahindra & Mahindra, John Deere India🔥🔥 etc.
📍It also exports agricultural implements to countries like Mauritius, Russia, Kazakhstan, South Africa, Sudan and Nepal.💫
▪️They also design and manufacture various types of brackets, such as cooling recovery reservoir brackets, exhaust tailpipe brackets, fuse block brackets, floor panel brackets, and passenger car air cleaner inlet hose brackets.
▪️Agricultural Implements (Raian unit punjab): 46% - 60% utilization.
▪️Auto components (Vithlapur unit ,gujarat): 42% utilization
▪️For Fiscal 2023, its 60.70% revenue came from auto components segment and 37.13% from agricultural implements segment.
📌MAJOR MILESTONES:
➢Technical Agreement with GUMNA SEIKO JAPAN for Cold Forging Components.💫
➢Marketing Collaboration with FAZA SRL ITALY for Agricultural Implements.✅
➢Tie up with ESCORT TRACTORS LIMITED for Agricultural Implements.
Abhishek Mehta
📌📌
▪️IPO price: Rs.66
▪️IPO size: 33.11 CR (excluding anchors, size is 23.69 Cr)
▪️CMP:Rs.115
▪️bse code: SWANAGRO
▪️Market cap: 218 CR
▪️P/E: 22✅ (Peers in range 36 to 233😮)
▪️ROE: 33.27%
▪️ROCE: 24.86%
▪️RoNW: 33.27%
▪️Debt/Equity: 1.31
▪️Assets:138Cr
▪️Total Borrowing:47.9Cr (Reserves and Surplus:20.8Cr)
▪️Share Holding Pre Issue:100%
▪️Share Holding Post Issue:73.62%
📌FINANCIALS:
▪️FY24H1 Rev: 77.89Cr🔥
▪️FY24H1 PAT: 4.98 Cr🔥
▪️FY23 revenue is 151.42 CR as compared to 145.5 CR(FY22), 4%✅ growth yoy.
▪️FY23 PAT is 9.91 CR as compared to 3.63 CR(FY22), 173%✅ growth yoy.
▪️2% growth in revenue in last 2 years.
▪️190%🔥 growth in PAT in last 2 years.
(PAT margins of 2.29% (FY21), 2.50% (FY22), 6.56% (FY23), 6.39% (H1-FY24)✅)
📌IPO funds:
From the net proceeds, it will utilize Rs. 3.90 cr. for capital expenditure on certain machineries, Rs. 8.00 cr. for repayment of certain borrowings Rs. 15.50 cr. for working capital and the rest for general corporate purpose.
📌PEERS:
As per the offer document, the company has shown Sansera Engg., Endurance Techno and JBM Auto as their listed peers. They are trading at a P/E of 35.53, 63.25 and 232.82 (as of January 05, 2024). However, they are not comparable on an apple-to-apple basis.
(SWAN AGRO at 22)
📌CLIENTS:�
Abhishek Mehta
�
📌SECTOR GROWTH:
▪️Due to the high development prospects in all vehicle industry segments, the auto component sector is expected to see double-digit growth in FY23. The industry is expected to stand at US$ 200 billion✅ by FY26.
▪️The Indian agricultural equipment market size reached INR 1,129.6 Billion in 2023. Looking forward, IMARC✅ Group expects the market to reach INR 2,527.4 Billion💫 by 2032, exhibiting a growth rate CAGR of 9.1% during 2024-2032.
▪️As per the Automobile Component Manufacturers Association (ACMA✅) forecast, auto component exports from India is expected to reach US$ 30billion by 2026.
▪️The auto components industry accounted for 2.3% of India’s GDP and provided direct employment to 1.5 million people. By 2026, the automobile component sector will contribute 5-7% of India's GDP.
▪️The component sales to OEMs in the domestic market grew by 46% to US$ 27.27 billion (Rs. 2.23 lakh crore🔥).
📌STRENGTH:
➢In-house Manufacturing capabilities.✅
➢Large base of dealers and customers along with strong relationship.💫
➢Stringent quality control mechanism ensuring standardized product quality.
➢Synergy of young and experienced management team with a committed employee base.(promoter have 38 years of experience).
➢Wide Range of Products.
📌FUTURE PLAN:
▪️Continue to invest in their technological capabilities.💫
▪️Expand their domestic presence in existing and new markets.✅
▪️Geographical reach through marketing network.
▪️Focus on consistently meeting quality standards.
▪️Maintaining cordial relationship with our Suppliers, Customer and employees.
Zerodha (Trading & Demat Account)
DRHP
IPO Guru (4400+ Posts, 5100+ Likes)
Top Contributor (600+ Posts, 100+ Likes)
