Review By Rudra Shares & Stock Brokers Ltd on Mar 19, 2018
The company is a leader in the two-wheeler locking systems and one of the two largest companies catering to the commercial vehicle locking systems market and also one of the two largest manufacturers of Operator cabins in India. Company manufactures its products at 31 manufacturing facilities
Further, it is in the process of commissioning 5 manufacturing facilities in India. It also has 6 joint ventures.
Company is also working towards auto fuels and emission norms and expanding export portfolio. Taking into risk consideration, the company depends on a limited number of customers for a significant portion of revenue (67.2%). The loss of a major customer may affect its business. Further, On the upper price band of Rs 332 with EPS of Rs 7.7 for FY17, P/E worksout at 43.1x. In the first six months FY18 company shows a excellent financial results but still valuation looks slight expensive as its P/E is quite high. Therefore we recommend to SUBSCRIBE the IPO for long term listing benefits.
Fresh Issue aggregating up to Rs 300 Cr
Offer for Sale of 64,00,000 Equity Shares @ 10
The share capital of Company is set forth below: - (Amount in Rs except share data)
Authorized Share Capital:-
68,000,000Equity Shares @10 Aggregate value 680,000,000,
200,000 Preference Shares @10 Aggregate value 20,000,000
Issued, subscribed and paid up capital before the Issue:-
51,154,564 Equity Shares @10 Aggregate value 511,545,640
Present Issue:-
The Offer comprises of the Fresh Issue and the Offer for Sale.
Offer for Sale
The Company will not receive any proceeds from the Offer for Sale.
Fresh Issue
The Company proposes to utilize the Net Proceeds from the
Fresh Issue towards:
Sandhar Technologies involves designing and Manufacturing a range of automotive components, parts and systems, driven by technology, process, people and governance. The company is a leader in the two-wheeler locking systems market, and the commercial vehicle rear view market in India, and one of the two largest companies catering to the commercial vehicle locking systems market.
It is also one of the two largest manufacturers of operator cabins in India, along with being the largest player in the excavator cabins market.
Company’s customer portfolio consists of Hero, TVS, Royal Enfield, Suzuki, Tata Motors, Ashok Leyland, SML Isuzu, Escorts, Caterpillar, JCB, Komatsu, TAFE, Volvo, etc.
In addition to these OEM customers, its global customer portfolio includes Autoliv, Bosch, and CTS.
Company manufactures its products at 31 manufacturing facilities across 8 states in India, 2 manufacturing facilities in Spain and one manufacturing facility in Mexico. Further, it is in the process of commissioning 5 manufacturing facilities in India.
It also has 6 joint ventures with: a) JBM Auto, b) Han Sung, c) Jinyoung Electro Mechanics, d) DMRG and Tarun Agrawal, e) Daewha Fuel Pump and f) Amkin group. Through these JVs, Sandhar also produces products such as high Precision press parts; insert moulded contact plates, AVN panels and switches.
Company objectives are to expand their market share and aim to accomplish this through the following strategies:
Total Revenues stood Rs 990.6cr, Rs 1633.5cr, Rs 1517.9cr and Rs 1487.3cr, in six months period ended September 31, 2017, Fiscal 2017, Fiscal 2016 and Fiscal 2015 respectively.
PBT was Rs 50.1cr, Rs 49.5cr, Rs 45.2cr and Rs 51.4cr, in six months period ended September 31, 2017, Fiscal 2017, Fiscal 2016 and Fiscal 2015 respectively.
PAT was Rs 34.6cr, Rs 39.6cr, Rs 33.7cr and Rs 38.4cr, in six months period ended September 31, 2017, Fiscal 2017, Fiscal 2016 and Fiscal 2015 respectively.
Taking into risk consideration, the company depends on a limited number of customers for a significant portion of revenue (67.2%). The loss of a major customer may affect its business. Further, On the upper price band of ?332 with EPS of ?7.7 for FY17, P/E worksout at 43.1x. In the first six months FY18 company shows a excellent financial results but still valuation looks slight expensive as its P/E is quite high. Therefore we recommend to SUBSCRIBE the IPO for long term listing benefits.
Review By Rudra Shares & Stock Brokers Ltd on Mar 19, 2018
Rudra Shares & Stock Brokers Ltd.
Rudra Shares & Stock Brokers Ltd. is Kanpur based brokerage houses offering services to Retail and HNI customers. Rudra Shares offer a range of financial services which includes institutional and retail brokerage of Equity, Currency, Commodities, Derivatives, Online Trading, Depository Services, Fixed Deposits, IPOs and Mutual Funds Distribution, Wealth Advisory and Research.
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