LM/MM Combo is the positive angle to the issue that should help it sail through well. Anchors are few and usual SME ones.
Co. is majority in trading biz of wax, related chemicals, paraffin etc which they import and sell it in domestic market to various sectors and industries. Competitve and filled with unorganised players. Thee new warehouse setup will replace 3 warehouse which they have leased currently.
They already have advanced orders till Nov 24 in place due to the nature of the biz. They have also imported foreign machinery to set up a export biz of Agro Commodities of around 7000 metric ton capacity. The current year figures show unusual rise in margins with relative increase in top line. The reason for this as stated by management was the stable Rupee / USD equation which has been around Rs 83 / USD for a year or so. A one time effect which is difficult to get replicated again. To counter the currency fluctuations AND IN-EFFECT HEDGE their import biz, the export segment is being introduced which should be operational by FY25 and later.
Their working capital estimates seem to be inflated and already discounting this export biz that proposes double revenues for FY25. On reasonable basis at close to 350 cr revenues for FY25 with ease in margins, PAT can be close to 5.2 cr, its priced near to 18 P/E as per FY25.
Promoters have experience in their field, with 1st and 2nd generations currently occupied in the biz. Currently employees are close to 14-15, the reason for this light model is that they are fully dependent on Warehouse management systems, something like ERP which reduces downtime
Can give listing gains and worth applying for the same.
@Palka
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