Mukka Proteins IPO Review

Mukka Proteins Limited is an animal protein company, primarily engaged in the production of Fish Meal, Fish Oil and Fish Soluble Paste as well as developing alternative proteins such as Black Soldier Fly (BSF) Insect meal in the animal food segment. Mukka Proteins IPO intends to raise Rs 224.00 crores. The issue is entirely a fresh issue of 8 crore shares.

IPO opensFeb 29, 2024
IPO ClosesMar, 4, 2024
IPO Size (Rs.)₹224.00 Cr
IPO Size (shares)
BreakupFresh issue only
Face Value:₹ 1
IPO Price in Rs :₹26 to ₹28 per share
Minimum Lot535 Shares
Listing AtNSE, BSE
NII Quota~15%
Retail Quota~35%
 Lead ManagerFedex Securities Pvt Ltd
Registrar Cameo Corporate Services

About Mukka Proteins:

  • Mukka Proteins Limited manufactures fish meal, fish oil and fish soluble paste, an essential ingredient in the manufacturing of aqua feed (for fish and shrimp), poultry feed (for broiler and layer) and pet food (dog and cat food).
  • Further, fish oil also finds its application in pharmaceutical products (additionally, the EPA-DHA extraction is used as an ingredient in nutraceuticals), soap manufacturing, leather tanneries & paint industries
  • They sell the products domestically and also exports them to over 10 countries.
  • Company, through Associate, namely EPPL entered the business of manufacturing and selling of insect meal and insect oil.
  • It has 4 manufacturing facilities in India (Karnataka and Gujarat) and 2 in Oman, with an aggregate manufacturing capacity of 1.15 lakh MTPA for fish meal, 16,950 MTPA of fish oil and 20,340 MTPA of fish soluble paste. Also has few contractual agreements with third party ,manufacturers.

Financials: Mukka Proteins

Particulars / Rs. Cr.2023(06)2023(12)2022(12)2021(12)
Revenue from Operation606.091,177.12770.50603.83
Total Revenue612.881,183.80776.15609.95
Restated Profit32.3444.0824.218.98
Equity Share capital22.0022.0022.005.50
Net worth159.11128.9287.2564.54
Diluted EPS1.4721.10.41
Return on Net Worth20.32%34.19%27.75%13.91%
Net Asset Value7.235.863.972.93
Total borrowings317.73254.83173.50159.19
Post issue Share Capital30   
IPO price28.0   
EPS Fy231.5   
PE Fy2319.1   
EPS Fy24 (annualized)2.2   
PE Fy24  (annualized)13.0   
Market cap in cr840.0   
Market cap / Sales0.71   

Mukka Proteins IPO: Anchors

(To be updated)

Mukka Proteins IPO: Salient Points

  • Post sluggish growth between fiscal 2018-22, fish meal exports saw a rise in fiscal 2023.
  • Mukka proteins limited through its promoters has presence in the fish meal and fish oil industry since 1975.
  • It has 4 manufacturing facilities in India (in the states of Karnataka and Gujarat) and 2 in Oman.
  • Company has also entered into contractual arrangement with third-party manufacturing units, situated at Sasihithlu (Karnataka), Udupi (Karnataka), Ullal (Karnataka), Taloja (Maharashtra), Porbandar (Gujarat) and Mangrol (Gujarat), which are strategically located to ensure availability of key raw material and also to increase our presence across the western coastline of India.
  • Product breakup
Revenue split by Fish Protein and Others
Product / Rs. Million2023(06)2023(12)2022(12)2021(12)
Fish Meal5,221.799,620.727,120.815,468.30
Fish Meal (as a % of total)86.16%81.73%92.42%90.56%
Fish Oil536.631,653.21325.50370.58
Fish Oil (as a % of total)8.85%14.04%4.22%6.14%
Fish Soluble Paste136.46269.13211.0677.79
Fish Soluble Paste (as a % of total)2.25%2.29%2.74%1.29%
Others and other operating income166.06228.1647.66121.67
Others and other operating income (%)2.74%1.94%0.62%2.02%
  • Fish meal accounts for 80-85% revenue.
  • Company intends to utilize the fresh issue portion of Net as follows:
Sr. No.ParticularsEstimated amount (₹ in million)
1.Funding working capital requirements of our CompanyUpto ₹1,200.00
2.Investment in our Associate, viz. Ento Proteins Private Limited, for funding its working capital requirementsUpto ₹100.00
3.General corporate purposes[●]
  • Peers
Particulars/ MillionYearRevenueGrowth in RevenueEBITDA )EBITDA MarginPATPAT MarginRoE%RoCE %PE
Avanti Feeds202350869.861.01%4,847.049.53%3122.526.14%13.14%20.59%21
Godrej Agrovet 202393528.112.78%6622.77.08%2953.63.16%10.77%19.11%32
Zeal Aqua20233626.87375.06%273.447.54%70.53551.94%9.97%19.87%22
Mukka Proteins202311,771.2252.77%943.118.01%475.254.04%36.71%17.62%13
  • There was certain action under FEMA by the Directorate of Enforcement, seizing certain properties held in the name of one of the Promoters for foreign transactions Matter is before the court.
  • As per CRISIL estimates and MPEDA database, Mukka Proteins Limited (at consolidated level) occupies a share of 8-9% in the overall fish meal and fish oil capacity in India.
  • Mukka Proteins enjoys ~25% market share of fish protein (comprising fish meal, fish oil and fish soluble paste) industry in India,
  • Operating revenue for Mukka Proteins limited has grown at a CAGR of ~24% from fiscal 2020 to 2023.
  • Net profit for Mukka Proteins limited has grown at CAGR of 45.4% from fiscal 2020 to 2023
  • 60% of its revenue of FY23 was earned through exports, mainly to Vietnam, Taiwan and China.
  • Mukka Proteins IPO is coming at a PE ratio of 19.1x(fy23 earnings) and 13x ( fy24 annualized earnings)
  • I intend to apply in Mukka Proteins IPO subject to availability of funds. My attention is drawn to some cases in the past against promoters which is not very comforting but valuation appear reasonable compared to peers. Also Sector has good prospects due to exports.
  • GMP as reported on social media has been Rs. 29.
  • 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.

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