Apex Frozen Foods IPO which opens on August 22, 2017 plans to raise Rs 152 crore in a price band of Rs 171-175 per equity share. The issue comprises of fresh issue of 72,50,000 shares and an offer for sale of 14,50,000 shares by promoters.
Apex Frozen Foods produces and exports aquaculture products mainly to USA and Europe. It provides ready-to-cook whiteleg and black tiger shrimps. All operations of the company are meant for export and the company offers its products to food companies, retail chains, restaurants, club stores, and distributors. Apart from general corporate purposes, Apex Frozen Foods plans to utilize IPO proceeds towards the setting up a new shrimp processing unit with a capacity of 20,000 tonnes per annum in Andhra Pradesh
Related Post : Apex Frozen Foods IPO Review
Peer Group Comparision
A comparison with peer group companies consisting of listed public companies in the field of aquaculture has been done.
| Rs. In Crore | ||||
| Parameter/Scrip | Avanti Feeds | Waterbase | Zeal Aqua | Apex Frozen |
| Revenue (FY 17) | 2,779.41 | 328.37 | 121.29 | 699.12 |
| Revenue Growth 1 yr | 35.81 | -3.81 | -29.21 | 15.84 |
| Operating Profit | 465.51 | 32.13 | 9.06 | 55.87 |
| OPM % | 16.75% | 9.78% | 7.47% | 7.99% |
| Profit After Tax | 291.18 | 17.05 | 1.91 | 24.41 |
| NPM % | 10.48% | 5.19% | 1.57% | 3.49% |
| Equity | 9.08 | 38.6 | 3.07 | 24 |
| Networth | 572.38 | 98.77 | 20.88 | 96.78 |
| RONW % | 50.87% | 17.26% | 9.15% | 25.22% |
| Book Value | 157.39 | 30.01 | 49.69 | 40.32 |
| Face Value | 2 | 10 | 10 | 10 |
| EPS | 64.14 | 4.42 | 6.22 | 10.17 |
| Current Market Price | 1920.00 | 118 | 439 | 175 |
| Price/ earning | 29.94 | 26.71 | 70.56 | 17.21 |
| Price / Book Value | 12.20 | 3.93 | 8.83 | 4.34 |
| CAGR Revenue 3 yrs | 32.86 | 26.6 | 18.86 | 10.78% |
| CAGR NP 3 yrs | 43.69 | -50.52 | 10.65 | 22.07% |
| Market Cap in Rs. Crore | 8716.80 | 455.48 | 134.77 | 420.00 |
| Market Cap/Sales Ratio | 3.14 | 1.39 | 1.11 | 0.60 |
About Avanti Feeds
Avanti Feeds is the leading manufacturer of Prawn and Fish Feeds, Shrimp Processor and Exporter from India. Avanti has Four Prawn and a Fish Feed Manufacturing Units, certified ISO 9001:2008, in Kovvur, Vemuluru and Bandapuram in West Godavari District, Andhra Pradesh and Pardi in Valsad District, Gujarat, with a capacity of 4,00,000 MT per annum. Avanti Feeds Limited has established joint venture with Thai Union Frozen Products, the world’s largest seafood processors and leading manufacturer of prawn and fish feeds. Thai Union is closely associated with Avanti Feeds with equity participation, technical collaboration and marketing tie-up in India.
About Waterbase Ltd
Waterbase Ltd. is a leading manufacturer of high quality shrimp feed in India. The company also processes shrimp in IQF, Block Frozen and Cooked form from its own captive farms, and exports its produce to global markets, predominantly Japan, Europe and the United States
About Zeal Aqua
Zeal Aqua is a leading Aquaculture company and one of the largest producers of shrimp in Gujarat. Zeal aqua Ltd. made a Fixed price Public issue of 11,35,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 130 per equity share in June 2016. The share has appreciated considerably since then
About Apex Frozen Foods
Apex Frozen Foods is an integrated producer and exporter of shelf stable quality aquaculture products. It supplies ready-to-cook products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores and distributors spread across the developed markets of USA, UK and various European countries Its output majorly comprises of variants of processed Vannamei shrimp (White shrimp) and are sold under the brands owned by its customers and also through brands namely Bay fresh, Bay Harvest and BayPremium.
Assessment
While Avanti Feeds is the undisputed leader in the field and is miles ahead, Apex Frozen Foods stacks evenly against Waterbase and Zeal Aqua, the other listed players in Aquaculture field. Overall Apex Frozen Foods IPO does not appear to be priced exorbitantly and looks reasonable based on its financial profile.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. I may have vested interest in every stock I discuss and my views may be biased. Please do your own due diligence as stock market investments have high degree of inherent risk.