Kataria Industries Limited manufactures and supplies Low Relaxation Pre-stressed Concrete Strands and Steel Wires, Post-tensioning Anchorage System , HDPE Single-Wall Corrugated Sheathing Ducts, Couplers, and Aluminum Conductors. Kataria Industries IPO is a book built issue of Rs 54.58 crores. The issue is entirely a fresh issue of 56.85 lakh shares.
IPO opens
July 16, 2024
IPO Closes
July 19, 2024
IPO Size (Rs.)
₹54.58 Cr
IPO Size (shares)
5,685,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹91 to ₹96 per share
Minimum Lot
1200 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Interactive Financial Services Ltd
Registrar
Bigshare Services
Market maker
About Aelea Commodities :
They are engaged in the manufacturing and supply of Low Relaxation Pre-Stressed Concrete (LRPC) Strands and Steel Wires, Post-tensioning (PT) Anchorage System (Anchor Cone, Anchor Head and Wedges), HDPE Single Wall Corrugated (SWC) Sheathing Ducts, Couplers and Aluminium Conductors.
The products are utilized in various sectors including Infrastructure, Roads – Bridges & Flyovers, Metros, Railways, High Rise Buildings, Atomic Reactors, LNG Tanks, Power Transmission & Distribution Lines etc. O
They have two manufacturing plants, both are situated at Ratlam, Madhya Pradesh. The plants are well equipped with essential machinery, infrastructure, and an in-house testing facility, which ensures that the product conforms to the requisite standards.
The Promoters of Company are Sunil Kataria, Arun Kataria and Anoop Kataria.
Financials:Kataria Industries IPO
Particulars/ Rs. Lacs
2023-24
2022-23
2021-22
Revenue from Operation
33,912.72
33,182.94
24,963.10
Other Income
235.91
210.15
85.81
Profit after Tax)
1,002.11
777.83
738.34
Share Capital
1,584.68
264.11
264.11
Net worth
4,549.56
3,584.16
2,806.33
Net asset value per share
28.71
22.62
17.71
Total borrowings
6,337.11
10,696.20
9,142.29
Post issue Share Capital
2153
FV
10.0
IPO price
96.0
EPS Fy24
4.7
PE Fy24
20.6
Market cap in Lacs
20,669
Market cap / Sales
0.62
Anchors: Aelea Commodities IPO
Kataria Industries IPO: Salient Points
Company’s products are used in various sectors. This include Infrastructure, Roads, Bridges, Flyovers, Metros, Railways, High-Rise Buildings, Atomic Reactors, LNG Tanks, Power Transmission, and Distribution Lines.
.Net proceeds use:
Sr. No.
Particulars
Estimated Amount (` In lakhs)
1.
Capital Expenditure for plant and machineries
175.00
2.
Repayment of Debt
4,600.00
3.
General corporate purposes
[●]
Product Bifurcation
Particulars
FY 2023-24
%
FY 2022-23
%
Wire Division
25,998.96
76.66
31,015.31
93.47
Cable/ Conductor Division
6,369.89
18.78
1,856.53
5.59
Accessories
1,543.87
4.56
311.11
0.94
Total
33,912.72
100
33,182.94
100
Key financial performance
Sr No.
Metric
As of and for the Fiscal
March 31, 2024
March 31, 2023
March 31, 2022
1
Total Income
34,148.63
33,393.09
25,048.91
2
Current Ratio
1.14
1.38
1.41
3
Debt Equity ratio
1.38
2.98
3.26
4
EBITDA
2,293.85
1,576.61
1,824.78
5
Operating EBITDA Margin (%)
6.72
4.72
7.28
6
PAT
1,002.11
777.83
738.34
7
Net profit Ratio (%)
2.95
2.34
2.96
8
Return on Equity ratio (%)
24.53
24.34
30.30
9
Return on Capital Employed (%)
17.40
9.31
12.23
The Company has Invested in the real estate with the stated purpose to diversify income streams .through renting spaces. Company had acquired two commercial properties in April 2023 and January 2023 situated in Surat and Vadodara, Gujarat respectively.
In 2022 they purchased a wind farm of 0.80 MW located at Dewas, Madhya Pradesh for captive consumption of electricity at manufacturing plant in Ratlam.
They have shown following Peers:
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RoNW(%)
Kataria Industries
96
261.50
10
3.8%
26.6
0.62
21.7
Kamdhenu Limited
527
732.08
50.00
6.8%
28.2
1.96
24.44
Incredible Industries
41.3
740.61
6
0.8%
32.4
0.24
3.87
Bharat Wire Ropes
247
589.06
96
16.3%
17.5
2.71
12.85
Out of the total revenue for the FY 2023-24, FY 2022-23 and FY 2021-22 they achieved export revenue of 4.45%, 2.63% and 5.68% respectively of the total revenue. They have exported goods in Dubai, Qatar, Nepal, Iran, Oman, Bahrain and Brazil.
Their strategy for expansion of business is also to focus on the increase in the exports.
Kataria Industries Limited’s revenue increased by 2.2 per cent year on year (YoY) to Rs 341.4 crore in fiscal year 2023-24 (FY24) compared to Rs 333.9 crore in FY23. Profit after tax rose by 28.8 per cent to Rs 10 crore from Rs 7.7 crore in this period.
Kataria Industries IPO is coming at a PE ratio of 20.6x (FY24 Earnings.
I have a slightly positive view on the company and intend to apply in Kataria Industries IPO subject to availability of funds. Promoter family has two listed companies DP Abhushan & DP wires.
Interactive Financial Services Ltd the IPOs led manager has an average track record. They managed IPs like Winny Immigration and Education Services Ltd, DCG Cables & Wires Limited, Teerth Gopicon Limited, Kalahridhaan Trendz Limited etc. in the past.
GMP as reported on social media has been Rs. 60.
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.
