Review By on September 11, 2018
Ranjeet Mechatronics is in the business of providing end to end solutions for security and firefighting requirements. In 2009, they began their journey as a fire fighting solution provider when installation of fire pumps & fire engines was made mandatory in high rise buildings, mall and industries by the government. Their services range from fire hydrant systems to Gas suppression devices to CCTV systems. Investors must note that the company does not manufacture their products in-house.
So how are they doing as a business?
|
FY |
FY 18 |
FY 17 |
FY 16 |
FY 15 |
FY 14 |
|
Revenue(Cr) |
17.7 |
17.6 |
25.25 |
23.61 |
10.63 |
|
PAT (Cr) |
0.91 |
0.5 |
0.16 |
0.04 |
0.03 |
|
PAT Margin (%) |
5.1 |
2.8 |
0.63 |
0.17 |
0.28 |
High Trade Receivables?
The company also has high trade receivables. In FY17, it accounted for almost 50% of its revenue while in FY18, it formed 30 % of the total revenue. Well, it is quite evident that the company recognizes revenue as soon as it wins a contract from a client w it takes some time for cash to enter the system. On average, the company took a total of 107 days to collect payments from its customers during FY18, albeit a significant improvement over 184 days it took to collect payment during FY17.
|
Particulars |
FY 18 |
FY 17 |
FY 16 |
FY 15 |
FY 14 |
|
Revenue(Cr) |
17.7 |
17.6 |
25.25 |
23.61 |
10.63 |
|
Trade receivable as % of Revenue |
30 |
50 |
33 |
28 |
32 |
Point of Interest
An Interesting Transaction
The company carried out a very interesting transaction in FY18. Related party transactions between Ranjeet and Himgiri (a firm solely owned by the Promoter) increased by 10 times in one year.
|
Particulars( in Cr) |
FY18 |
FY17 |
FY16 |
FY15 |
|
Sales to Himgiri(% of revenue) |
6(34.4%) |
0.54(3%) |
- |
- |
|
Purchases from Himgiri(% of Total Expense) |
5.78(34%) |
0.84(6%) |
- |
- |
Why IPO?
The company is planning to go for to fulfil two objectives:
|
Particulars |
Amount Raised through IPO (Cr) |
|
Working Capital Requirements |
3.12 |
|
General Corporate Purpose |
1.00 |
|
Total |
4.12 |
What does the Future hold?
Based on annualized earnings asking price of Rs 25 translates to a PE of about 18 post issue. Considering the declining top line and receding order book, the company faces an uphill battle.
We here at Finception, wish the company all the best in its future endeavour.
The review has been compiled by Pawan Kumar- NISM Certified and cofounder, Finception.
Based on annualized earnings asking price of Rs 25 translates to a PE of about 18 post issue. Considering the declining top line and receding order book, the company faces an uphill battle.
Review By on September 11, 2018
Finception
Finception is a startup dedicated to simplifying stocks through compelling storytelling. Finception aggregates, analyses and filters information from multiple sources and creates compelling narratives about publicly listed companies in an easy to understand language without financial jargons. The startup is the brainchild of 3 IIM Ahmedabad alumnus and they are currently based out of Ahmedabad.
Email: support@finception.in
The initial public offer (IPO) of Ranjeet Mechatronics Ltd. offers an early investment opportunity in Ranjeet Mechatronics Ltd.. A stock market investor can buy Ranjeet Mechatronics IPO shares by applying in IPO before Ranjeet Mechatronics Ltd. shares get listed at the stock exchanges. An investor could invest in Ranjeet Mechatronics IPO for short term listing gain or a long term.
Read the Ranjeet Mechatronics IPO recommendations by the leading analyst and leading stock brokers.
Ranjeet Mechatronics IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Ranjeet Mechatronics IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Ranjeet Mechatronics IPO?"
Sorry, we didn't rate the Ranjeet Mechatronics IPO.
Our lead analyst Mr. Dilip Davda didn't rate the Ranjeet Mechatronics IPO.
The Ranjeet Mechatronics IPO allotment status will be available on or around September 21, 2018. The allotted shares will be credited in demat account by September 25, 2018. Visit Ranjeet Mechatronics IPO allotment status to check.
