Blog

Saakshi Medtech IPO entails to raise Rs. 30.48 cr. and comprises a total of 17,82,400 equity shares, including a fresh issue of 1,260,800 equity shares and an offer for sale ₹8.92 Cr (OFS) of 5,21,600 equity shares. Saakshi Medtech & Panels Ltd. is a diversified company engaged in the business of manufacturing electrical control panels, cabinets, medical equipment, etc.

About Saakshi Medtech & Panels Ltd.;

• Saakshi Medtech and Panels Ltd. was founded in 2001 by Mr Vijay Latkar a technocrat and a veteran General Electric employee.
• Saakshi Medtech & Panels Ltd. is a diversified company engaged in manufacturing of:
• (i) Electrical Control Panels and Cabinets used in elevators, air compressors, renewal energy industry, oil & gas exploration industry, electrical vehicle charging stations etc,
• (ii) Medical X Ray System used in healthcare industry
• (iii) Fabrication works for locomotives and
• (iv) wire harness division for our captive consumption in electrical control panels and for supply to air compressor industry.
• It has in-house engineering and design capabilities which help it to offer diversified products and solutions to its customers in each of the product categories in which it operates.
• Saakshi Medtech operatse through three manufacturing facilities situated in Pune with total built up area of approx. 9600 sq mtr. It manufactures Electrical Control Panels and Cabinets, Medical X- Ray System and Wire Harness in the factory Unit-I and Fabrication works in factory Unit II and Unit III
• As of March 31, 2023, it had 90 employees on its payroll and in addition, it also hired contract workers.
• Its R&D operations are supported by a team of 37 engineers as on March 31, 2023.
• Promoters: Aniket Vijay Latkar and Chitra Vijay Latkar

Financials: Saakshi Medtech IPO

Anchor

Saakshi Medtech IPO: Salient Points

• Promoter holding will come down from 100% to 73.63% after the IPO.
• Saakshi Medtech is mainly focused on domestic market with Domestic sales of 97.42% and Export sales was 2.57%.
• Issue proceeds will be used for:

•  Key Performance Indicators

Peers: No exact Peers

• The cash flow from operations has improved over the years.
• The net margins have improved over the years from 4% to 10%.
• Company has in-house capabilities for designing and manufacturing precision engineering products.
• Electrical Control Panels and Cabinets, which represented 69.75%, 63.57% and 53.44% of its revenue from operations. Fabrication Works contribute 19.10% to revenue, Trading Components 6.21%, Medical X-ray System 2.63%, Wire Harness Division 1.56%, Others 0.72%.
• In panels its major Clients include Atlas Copco (India) Ltd and Ge India Industrial Pvt Ltd, OTIS Elevator Company (India) Ltd, GE Oil & Gas India Pvt Ltd, Kirloskar Oil Engines Ltd, Kirloskar Pneumatic Co.Ltd.
• Company has entered into a long-term supply agreement with OTIS Elevator Company (India) Ltd for supply of electrical control panels for controlling of lift movement valid upto June 30, 2024.
• In Medical X-Ray Systems it clients include Wipro GE Healthcare, Philips India, BPL Medical Technologies.
• It is into fabrication of High-level Assembly (HLA) which are installed in locomotives which include manufacturing and assembly of sensor box, battery boxes, sandboxes, dynamic brake weldments, resistor boxes, oil tank assemblies, snow plow, etc. It primarily supplies these HLA to the Wabtec group of companies. Wabtec is an MNC and is one of the largest rail equipment manufacturers in India. It has entered into a long term supply agreement with Wabtec India Industrial Private Limited, valid upto the year 2027
• Its top five customers contributed to 93.08%, 90.45% and 90.57% of our revenue from operations.
• Saakshi Medtech has good diversification of revenue across multiple industries.
• Company intends to expand its manufacturing facility and product range. For example: It has successfully commissioned the first trial run order for manufacturing electrical control panel for battery charging station of Electrical Vehicles
• Saakshi Medtech IPO is coming at a PE ratio of 13.8x(fy23 earnings) .
• I intend to apply in Saakshi Medtech IPO subject to availability of funds.
• GMP as reported on social media has been around Rs. 30.
• Hem secuities is the Lead Manager to the issue. The IPOs lead managed by them have given a good return to the investors. These include names like Kahan Packaging Limited, Asarfi Hospital Limited, Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Hemant Surgicals, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc.
• SME IPO are quite illiquid and volatile and exit options sometimes is delayed.
• There are reports that SEBI is of view that SME stocks prone to more market manipulation and SEBI may be looking to curb speculation in SME stocks.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in 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.