Emerald Tyre Manufacturers specializes in manufacturing, supplying, and servicing a wide range of tyres. Emerald Tyre Manufacturers IPO is on track to riase Rs 49.26 crores. The issue is a combination of fresh issue aggregating to Rs 47.37 crores and offer for sale aggregating to Rs 1.89 crores.
IPO opens
December 5, 2024
IPO Closes
December 9, 2024
IPO Size (Rs.)
₹49.26 Cr
Breakup
Fresh issue ₹47.37 Cr+ OFS ₹1.89 Cr
Face Value:
₹ 10
IPO Price in Rs :
₹90 to ₹95 per share
Minimum Lot
1200 Shares
Listing At
NSE SME
QIB Quota
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
GYR Capital Advisors Private Limited
Registrar
Link Intime
Market maker
Giriraj Stock Broking.
About Emerald Tyre Manufacturers
Company is engaged in the Business of Manufacturing, Supplying and Services for a comprehensive range of tyres for material handling applications like forklifts, skid loaders, ground support equipment of Airports, Port trailers, agri implements, lawn and garden mowers, mining equipment, aerial work platform trucks, backhoe loaders etc.
Company being incorporated in the year 2002, has a presence in the Domestic market as well as Global market for more than two decades.
Manufacturing unit is operational at Tiruvallur District Tamil Nadu spread over 10.05 acres with an installed production capacity of 3522 MT of tyres, tubes and wheels
Product range covers a wide range of off highway tyres.
Company was promoted and pioneered by Mr. Chandhrasekharan Venkatachalam Thirupathi.
Financials: Emerald Tyre Manufacturers IPO
Particulars/ Rs. Lacs
July 31, 2024
March 31, 2024
March 31, 2023
March 31, 2022
Revenue from operations
6,380.33
17,098.74
16,393.95
13,364.26
Profit after Tax
413.64
1,214.32
892.85
484.62
Share Capital
1,449.05
1,449.05
656.05
656.05
Net Worth
5,813.80
5,397.59
3,698.84
2,897.44
Net Asset Value
40.12
37.25
28.19
22.08
Total borrowings
8,750.18
8,718.28
8,466.40
7,504.59
Post issue Share Capital
1948
FV
10.0
IPO price
95.0
EPS Fy24
6.2
PE Fy24
15.2
EPS Fy25 (annualized)
6.4
PE Fy25 (annualized)
14.9
Market cap in Lacs
18,506
Market cap / Sales
1.08
Emerald Tyre Manufacturers IPO: Anchors
Emerald Tyre Manufacturers IPO: Salient Points
Company operates in Off Highway Tyres (OHT) manufacturing, contributing significantly to the global market. The Off Highway Tyre (OHT) manufacturing industry continues to demonstrate its resilience.
In 2023, the global OHT tyre market witnessed significant growth, with a notable increase in demand driven by infrastructure projects, mining activities, and agricultural mechanization. The market experienced a compound annual growth rate (CAGR) of over 8% during the fiscal year.
Emerald Tyre Manufacturers, is one of the largest manufacturers and exporters of off-highway tyres with a special focus on industrial tyres.
The company is also the most preferred OEM supplier for its product range in India. It offers a comprehensive range of tyre and wheel solutions across various sectors of material handling industry.
Net issue proceeds use:
Sr. No.
Particulars
Estimated amount
1.
Funding of the Capital Expenditure of our Company
Up to 3633.49
2.
General corporate purposes*
[●]
Spending 3-5% on R&D
Product Wise Bifurcation
Particulars
For the period ended
For the Financial year ended
July 31, 2024
March 31, 2024
March 31, 2023
March 31, 2022
Solid tyres
3177.77
8685.07
8,322.82
7,265.73
Press On band
391.33
967.20
1,075.47
801.42
Industrial Pneumatic
2679.20
7,064.71
6,672.19
5,049.65
Wheel Rims
20.87
38.55
12.75
14.54
Other
111.13
343.21
370.71
232.93
Total
6380.33
17098.74
16393.95
13364.26
77% of the revues are derived from foreign markets.
PE 2025 (annualized) 14.9x ; PE 2024: 15.2x.
Peers:
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RONW %
Emerald Tyre Manufacturers
95.0
171.97
12.14
7.1%
15.2
1.08
22.50%
Balkrishna Industries
2,876
9,818.09
1,471.00
15.0%
34.1
5.51
16.62%
TVS Srichakra
3,763
2,932.63
7.00
0.2%
41.6
0.92
9.69%
Emerald Tyre Manufacturers Limited has maintained a dominant presence in both domestic and international markets for more than two decades.
Company has the flexibility in the manufacturing facility to address market requirements.
They are expanding their pneumatics offerings and also scaling up their US operations.
Will take 9 months for expansion to contribute to bottom line.
Past three years has seen good rise in revenues and profitability.
I intend to apply in Emerald Tyre Manufacturers IPO. It has Strong market position in off highway tyre manufacturing industry. The demand for these tyres is increasing due to focus on mechanization in agriculture, infrastructure, logistics, material handling and mining. Management has guided for 15-20% growth after capex completion.
GMP as reported on social media is Rs. 175 (62%)
Lead manager GYR Capital Advisors Private Limited has excellent record and enjoys good standing.
Anchor response has been strong.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
