Yash Optics & Lens Limited offers a wide range of vision correction solutions. The company is engaged in the manufacture, trading, distribution, and supply of spectacle lenses/optical lenses. Yash Optics & Lens IPO aims to raise Rs 53.15 crores. The issue is entirely a fresh issue of 65.62 lakh shares.

About Yash Optics:

• Established in the year 2010, initially Company was engaged in trading and distribution of spectacle and optical lenses which were sourced from Indian importers and traded in Mumbai.
• Started manufacturing 2011.
• Over the years, they have increased the product portfolio with brands like Seto, IRIS etc. and expanded the network & distribution channel in Maharashtra, Gujarat and Rajasthan. Under the trading space, company sources the spectacle/optical lenses and market the same under its own brands for further sale through distributors and own retail channels.
• Company provides wide array of vision correction solutions. Company is primarily engaged in the business of manufacturing, trading, distribution and supplying of comprehensive range of spectacle/optical lenses. Their products are available across the entire range of price points enabling us to serve the entire gamut of customers from economy.
• Company manufacture the lenses based on order and prescription received from the customers.
• The manufacturing facility situated at Kandivali (West), Mumbai
• Promoters of company are Mr. Tarun Manharlal Doshi, Mr. Dharmendra M Doshi and Mr. Chirag Manharlal Doshi.

• They are offering from single vision lenses to advanced progressive lenses, customized progressive lenses to personalized progressives for professionals along with wide range of coatings.

Financials: Yash Optics IPO

Anchors: Yash Optics IPO

Yash Optics IPO: Salient Points

• Post-Issue Shareholding of Promoters and Promoter Group is 71.63 %.
• They have two business divisions (i) domestic sales; and (ii) international sales.
• They have pan India presence with distributors network for domestic market.
• They have also started export division and are supplying products to East Africa, West Africa, Central Africa, United Arab Emirates, Nepal, Kuwait.

• The Net Proceeds are proposed to be utilized in the manner set forth below for the objectives of the IPO:

• Net Proceeds towards meeting the funding of capital expenditure for setting up a manufacturing unit for backward integration, purchase of plant and machinery at our existing manufacturing facility, repayment or prepayment of borrowings availed by our Company, funding working capital requirements and general corporate purposes.
• Company is primarily engaged in the business of manufacturing, trading, distribution and supplying of comprehensive range of spectacle/optical lenses. Ccompany is planning to setting up a manufacturing facility to manufacture plain blanks and finished single vision lenses (CR-39) which is used as a raw material in their current process through this backward integration.
• They were pioneers in bringing these lens in the country and claim to be one of the biggest player in the coutry.
• Business is B2B.
• Company is also appointed by HOYA Lens India Private Limited, as an exclusive distributor to sell, market and distribute the “Pentax” brand of Ophthalmic lenses in India pursuant to agreement dated October 01, 2022 as per the terms and condition laid down in the said agreement.
• Distribution between manufacturing and Trading:

• Company has taken short term and long-term borrowings from ICICI Bank Limited. The total amounts outstanding and payable by them as secured loans and unsecured loans were ₹ 711.11 Lakhs and ₹ 211.97 Lakhs as on December 31, 2023.
• Most of the portion of raw materials required in manufacturing process are imported.
• Company is offering “Lustraa” a coatings solution to protect lenses and enhance the durability, performance and appearance of lenses. Under “Lustraa” brand we are offering Lustraa HD, Lustraa UV+, Lustraa Blue +, Lustraa IR+, Drivease, FOGFREE, TEXUS, QUARTZ etc.
• They have a product brand portfolio of approximately 37 product brands includes “Pentax”.
• Peers :

• They seemed to have done quite well compared to their peer.
• Their revenue from operations has grown from ₹ 1,496.22 lakhs in Financial Year 2021 to ₹ 2,975.03 Lakhs and ₹ 3,968.81Lakhs in Financial Year 2022 and Financial Year 2023, respectively with a CAGR of 63% and matched by an even stronger growth in Profits.
• Yash Optics IPO is being offered at a PE of 24.9x (based on FY23 earnings) and 23.7x (based on annualized FY24 earnings)
• I intend to apply in Yash Optics IPO subject to availability of funds. The pricing appears to be bit on the higher side though growth in profits and revenues has been good in the past. 6 month figures of this year show moderate growth. They intend to increase production capacity based on IPO funds.
• GMP as reported on social media has been Rs. 25/-
• Shreni Shares Private Limited is the lead manager with quite a decent record of good listing and performance subsequently. Past issues handled by them include Gabriel Pet Straps Limited, DelaPlex Limited, Net Avenue Technologies Limited, Swashthik Plascon Limited, KK Shah Hospitals Limited, Marco Cables & Conductors Limited, Meson Valves India Limited, C P S Shapers Limited, AccelerateBS India Limited, Global Pet Industries Limited, Veefin Solutions Limited, Sancode Technologies Limited, Bright Outdoor Media Limited, Srivasavi Adhesive Tapes Limited, Arihant Academy Limited, PNGS Gargi Fashion Jewellery Limited, DAPS Advertising Limited, Olatech Solutions Limited etc.
• SME IPO are much more risky and volatile than mainboard IPOs.
• 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.