Mohini Health IPO comprises issue 4932000 equity shares of Rs.10 each in a price band of Rs. 40 – Rs. 42 per share to mobilize ~ Rs. 20.71 crore. Mohini Health & Hygiene Ltd is Pithampur (MP) based company engaged in the business of manufacturing and export of absorbent cotton and medical consumable products. Company caters to both domestic and international markets.
Mohini Health IPO Details:
| Symbol | MHHL |
| Issue Period | 05-Feb-2018 to 07-Feb-2018 |
| Issue Size | 49,32,000 Equity Shares |
| ( 19.73 Crore) | |
| Price Range | Rs 40 to Rs 42 |
| Face Value | Rs 10 |
| Tick Size | Rs 1 |
| Market Lot | 3,000 Equity Shares |
| BRLMs | Pantomath Capital Advisors Limited and Small Industrial Development Bank of India (SIDBI) |
| Categories | FI, IC, MF, FII, OTH, CO, IND, and NOH |
| Registrar | Link Intime India Private Limited |
| Listing | NSE SME |
About Mohini Health & Hygiene Limited:
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Incorporated in 2009, Mohini Health & Hygiene Limited is engaged in manufacturing and export of absorbent cotton and medical consumable products.
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Tits manufacturing facilities are situated at Pithampur, Madhya Pradesh.and include machinery, Effluent Treatment Plant, boiler and handling equipments etc.
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Company is promoted by Avnish Bansal and Sarvapriya Bansal.
Major products of company are:
1) Absorbent Bleached Surgical Cotton
2) Absorbent Cotton Wool
3) Cotton Balls
4) Cotton Ear Buds
5) Cotton Zig Zag
Mohini Health: Financials:
| (Amount in Lakhs) | |||||
| Particulars | HY18 | 2017 | 2016 | 2015 | 2014 |
| Revenue from operations | 8237.06 | 13588.73 | 12201.42 | 9093.99 | 4867.25 |
| Other income | 279.63 | 184.22 | 107.99 | 9.62 | 1.85 |
| Total Revenue (I + II) | 8516.7 | 13772.96 | 12309.41 | 9103.61 | 4869.1 |
| Profit before tax | 485.61 | 385.6 | 424.4 | 254.15 | 107.17 |
| IX. Profit before tax | 485.61 | 385.6 | 424.4 | 254.15 | 107.17 |
| XI. Profit after Tax | 364.06 | 339.31 | 380.71 | 192.59 | 73.06 |
| Equity Capital | 373.19 | 205.09 | |||
| NAV | 95.09 | ||||
| Face Value | 10 | 10 | |||
| EPS | 9.76 | 16.54 | 1,82,35,900 | ||
| Post Issue Equity | 1823.59 | ||||
| IPO Price | 42 | ||||
| Face Value | 10 | ||||
| Price/Book Value | 0.44 | ||||
| EPS Post Issue (on Fy17 earnings) | 1.86 | ||||
| EPS annualized HY18 | 3.99 | ||||
| PE – (Fy 17 Earnings) | 22.57 | ||||
| PE Annnualized HY 18 | 10.52 | ||||
| CAGR Sales 3 Yrs | 41.43% | ||||
| CAGR Net Profit 3 Yrs | 66.84% | ||||
| Market Cap | 7659.08 | Lakhs | |||
| Market cap / Sales | 0.56 | ||||
Rationale for Investment
- Company has a good track record of growth in sales and Profits for the last five years.
- The Company operates both in domestic and international markets and has been awarded as Star Export House by Office of the Joint Director General of Foreign Trade.
- Mohini Health revenue comes from variety of countries (Italy, Poland, Latvia are main customers) and its sales are spread throughout the country (MP & Gujarat account for major sales).
EXPORT AND DOMESTIC SALES HY18 EXPORT SALES Country Amount (Rs in Lakhs) China 33.03 Germany 54.56 Greece 156.63 Italy 835.15 Latvia 774.84 Philiphines 87.94 Poland 1977.2 Russia 235.96 Spain 202.56 Sri Lanka 18.22 Mexico 62.05 Sub Total 4438.15 DOMESTIC SALES State Amount (Rs in Lakhs) Andhra Pradesh 33.89 Bihar 1.03 Chhattisgarh 49.47 Delhi 0.03 Gujarat 907.66 Himachal Pradesh 0.22 Jharkhand 1.51 Kerala 4.35 Madhya Pradesh 2384.42 Maharashtra 148.34 Manipur 1.52 New Delhi 10.52 Puducherry 1.78 Rajasthan 33.8 Tamil Nadu 4.03 Uttar Pradesh 7.35 Uttarakhand 0.81 West Bengal 7.31 Sub Total 3598.61 Total 8036.18 - Mohini Health has been issued Certificate of Compliance from UK Certification & Inspection Limited and has been inspected and assessed according to the Global Organic Textile Standard by One Cert International Private Limited.
Risks & Concerns:
- Mohini Health is exposed to foreign currency exchange rate fluctuations
- Increase in the prices of its basic raw material i.e. raw cotton could raise our manufacturing costs and could adversely affect its profitability.
- Tepid market conditions could result in lower valuations
Mohini Health IPO: Assessment
- From FY 2012-13 to FY 2016-17, Mohini Health has shown revenue growth from Rs. 4145.56 lakhs to Rs. 13772.96 lakhs, representing a CAGR of 35%.
- Its profit after tax has shown growth from Rs. 64.37 lakhs to a profit of Rs. 339.31 lakhs representing a CAGR of 51.5%.Mohini Health is Expanding their Product Portfolio and many products like Hand Sanitizer, Liquid hand wash, First Aid Kit, Surgical Gloves etc. are planned.
- A wide range of customers and a wide product basket that company is planning to add will increase the turnover in the coming years.
- I may apply in the Mohini Health IPO with 1-2 applications due to good growth exhibited by the company in past with reasonable profitability and potential due to planned launch of new products. However I will keep a watch on subscription which could be low due to market conditions and if subscribed minimum 2-3 times, I shall put in 1-2 applications
- Any sharp downswing in markets as seen post budget may impact the listing price and hence at this stage listing gains are not assured
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.