Mohini Health NSE SME IPO Review (Subscribe)

Review By Dilip Davda on Jan 30, 2018

Mohini Health & Hygiene Ltd. (MHHL) is an ISO 9001(QMS), ISO 14001 (EMS) and 18001 (OHSAS) certified company engaged in manufacturing and export of absorbent cotton and medical consumable products.  It was formerly known as Mohini Fibers Ltd. and was engaged in the business of dealing and processing of cotton and waste cotton and lately diversified into the health and hygiene sector with the change in name. MHHL operates both in domestic and international markets and has been awarded as Star Export House by Office of the Joint Director General of Foreign Trade. It has transferred its cotton waste recycling business activity to its subsidiary Vedant Kotton Pvt. Ltd. Its product portfolio includes Absorbent Bleached Surgical Cotton, Absorbent Cotton Wool, Cotton Balls, Cotton Ear Buds, Cotton Zig Zag etc.

To part finance its repayment/prepayment of debt, working capital and general corpus fund needs, MHHL is coming out with a maiden IPO of 4932000 equity shares of Rs.10 each via book building route in a price band of Rs. 40 – Rs. 42 per share to mobilize Rs. 19.73 cr. to Rs. 20.71 cr. (based on lower and upper price bands). Issue opens for subscription on 05.02.18 and will close on 07.02.18.Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is jointly lead managed by Pantomath Capital Advisors Pvt. Ltd. and Small Industries Development Bank of India (SIDBI). Link Intime India Pvt. Ltd. is the registrar to the issue. Having raised initial equity at par between incorporation and January 2010, it also raised few shares at par in March 2014. It raised further equity in the price range of Rs. 30 to Rs. 80 per share between March 2011 and January 2018. It has also issued bonus shares in the ratio of 3 for 1 in November 2017. Post issue, MHHL’s current paid up equity capital of Rs. 13.30 cr. will stand enhanced to Rs. 18.24 cr. Issue constitutes 27.04% of post issue paid up capital of the company. 

On performance front, MHHL has posted turnover/net profits of Rs. 48.69 cr. / Rs. 0.73 cr. (FY14), Rs. 91.04 cr. / Rs. 1.93 cr. (FY15), Rs. 123.09 cr. / Rs. 3.82 cr. (FY16), Rs. 137.73 cr. / Rs. 3.39 cr. (FY17). Thus while top line maintained growth pattern, it suffered a setback in bottom line for FY17. For first half of the current fiscal, it has earned net profit of Rs. 3.64 cr. on a turnover of Rs. 85.17 cr. which is a bit surprising. For last three fiscals, it has posted an average EPS of Rs. 2.85 and an average RoNW of 16.15% on an equity base of Rs. 2.96 crore that has quantum jump now and will further rise post issue. Issue is priced at a P/BV of 0.44 based on its NAV of Rs.95.09 as on 30.09.17. If we annualize latest earnings and attribute it on fully diluted post issue equity then asking price is at a P/E of around 11 that augurs well. It has no listed peers to compare with.

On merchant banker’s front, this is the 61st mandate from its stable in last three fiscals. Out of last 10 listings, 1 opened around par and the rest with premiums ranging from 1% to 130% on the day of listing. 130% rewards are from the only main board IPO of this merchant banker i.e. Astron Paper


Conclusion / Investment Strategy

Considering reasonable pricing and the future prospects for this company, investment may be considered for short to long term.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Jan 30, 2018

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Mohini Health IPO FAQs

  1. 1. Why Mohini Health IPO?

    The initial public offer (IPO) of Mohini Health & Hygiene Ltd offers an early investment opportunity in Mohini Health & Hygiene Ltd. A stock market investor can buy Mohini Health IPO shares by applying in IPO before Mohini Health & Hygiene Ltd shares get listed at the stock exchanges. An investor could invest in Mohini Health IPO for short term listing gain or a long term.

  2. 2. How is Mohini Health IPO?

    Read the Mohini Health IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Mohini Health IPO what should investors do?

    Mohini Health IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Mohini Health IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Mohini Health IPO good?

    Our recommendation for Mohini Health IPO is to subscribe.

  5. 5. Is Mohini Health IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Mohini Health IPO.

  6. 6. When will Mohini Health IPO allotment status?

    The Mohini Health IPO allotment status will be available on or around Feb 12, 2018. The allotted shares will be credited in demat account by Feb 15, 2018. Visit Mohini Health IPO allotment status to check.

  7. 7. When will Mohini Health IPO list?

    The Mohini Health IPO will list on Friday, February 16, 2018, at NSE SME.








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