Sheetal Universal Limited IPO Message Board (Page 7)

Applay for listing gain

💎Spread X Securities💎

Spread X Securities performance is also Good One .. ✌️

senior member@Noorul @KAPPO @B.M.SURANA @newgen consultancy  plz advice me apply or avoid ?

Rajkot based agri commodity processor and exporter. Subsidiary of the company is a merchant exporter of brass fittings and tiles.
Dependable LM who has ensured listing is not –ve for investors although few of the recent issues (Rajgor castor derivatives, Chavda infra have underperformed vis a vis expectations / subscription)
Funds from IPO to be used for capital expenditure, working capital requirements and general corporate purpose. IPO expenses are around 10% of the issue size.
Sales for 22-23 were Rs 128.8 cr while for 5MFY24, it was Rs 56.8 cr. Not possible to assume growth or degrowth at agri-processing is a cyclical business with 2nd half having more business. Company has not corresponding previous period sales for comparison with 5MFY24 financials.
Exports are 83% of sales for 22-23 and 78% for 5MFY24.
Receivable as on 31-Aug-23 is Rs 23.37 cr of which of which Rs 36 lacs is outstanding for 6 mths -1 year while Rs 51 lacs is outstanding for over 1 year.
Finance cost is Rs 80 lacs p.a. on average borrowing (LT+ST) of Rs 11.5 cr, which gives Interate rate of 7%. Could be due to low cost packing credit availed by company for exports.
Capacity utilisation increased from 58% in 21-22 to 69% in 22-23.
Material cost as % of sales was 90% in 22-23 and 92% in 5MFY24 indicating a highly commoditized high volume low margin business.
Poor cash flow indicating profits are sucked into increasing receivables and inventory. PBT for 41 mts till Aug-23 was Rs 6.03 cr while CFOB4T for the same period was negative (–ve) Rs 4.35 cr.
Other income of Rs 2.8 cr for 22-23 includes foreign exchange gain of Rs 1.4 cr and duty drawback of Rs 1cr. Foreign exchange gain could be due to company leaving its forex position unhedged. Other income for 5MFY24 was Rs 1.5 cr including discount and incentive of Rs 57 lacs (previous year Rs 1.4 lacs), foreign exchange gain Rs 31 lacs and duty drawback of Rs 45 lacs.
Short term loans and advances as on 31-Aug-23 includes GST refund/receivable of Rs 3 cr (Rs 1.42 cr as on 31-Mar-23). Since it is receivable from government, collection is assured however there could be long delay leading to working capital blockage.
Other short term advance includes other advance of Rs 90 lacs (no additional details) and duty drawback receivable of Rs 60 lacs.
Other expenses for 22-23 were Rs 11.7 cr of which Rs 6.7 cr was freight, Rs 1.2 cr transportation, Rs 1.75 cr export expenses and Rs 14 lacs foreign exchange loss. 22-23 sales were Rs 129 cr
Same expenses for 5MFY24 were freight Rs 31 lacs, transportation Rs 38 lacs, export expense Rs 66 lacs, foreign exchange loss Rs 4 lacs. Sales for 5mth ending Aug-23 were Rs 56.76 cr
Company had 19 employees as on 31-July-23 and as per EPFO portal, it has not deposited PF till now.
Most of the recent issues by this LM had QIB / Anchor book while this is just Retail and NII.

in depth analysis

this lm(beeline's) last ipo

rajgor castor below issue price....

its hard to maintain track record like hem securities nd corporate capital ventures

​@Hope is life Ji, yes Rajgor is trading below issue price but it gave listing gains.
While going through the performance of LM, I observed a very interesting fact.
Whenever it gave good listing gains, later on price has depreciated remarkably.
Whenever listing gains were low, later on price has appreciated quite remarkably.
The only exception is its last SME - Rajgor which gave little listing gains and now trading below issue price. All the remaining scripts are trading above issue price.
Hope, this one will perform according to reputation of LM.Would love to know the opinion of senior forum members.

​@Pangaj Don't be like me 

avoiding this ipo sir
two good ipo coming

not 100% convince in this ipo

note-this is my personal opinion, u can take decision of apply or avoid after ur research

Not sure why they are running this business which is largely dependent on government subsidy, export incentives from the govt, income from foreign exchange fluctuations and discounts.

Have a look at the net profit and compare it to the income from other sources like subsidy etc.

19 employees.

Freight & octroi expenditure which was Rs 6.68 cr for last year (FY2023) is suddenly down to Rs 0.31 cr for April to August 2023 (near similar turnover as last year).

Many unanswered questions.

🌹UPDATE SME IPO
Swashthik Plascon: 11/= ₹12/=
Deepak Chemtex: ₹65/= ₹70/=
AMIC Forging: ₹111/= - ₹113/=
Net Avenue Technologies: ₹7/=
Graphisads: ₹1/= ₹2/=
Marinetrans India: ₹1/= ₹2/=
Sheetal Universal: ₹7/= ₹8/=
[ Jodhpur Beawar Chennai Raipur Kolkata :- As Heard from Various Brokers or Grey Market dealers ]
🙏Please note that whatever GMPs I am posting are just for 📚knowledge purpose
We do not support or execute grey market trades

GMP UPDATE SME IPO
Swashthik Plascon: 11/= ₹12;
Deepak Chemtex: 65/= ₹67/=
AMIC Forging: 113/=
Net Avenue Technologies: 11/= - 12/=
Graphisads: Nil
Marinetrans 🇮🇳India: Nil
Sheetal Universal: 9/=
Accent Microcell: 113/=
[ Jodhpur Beawar Chennai Kolkata ]

Debt to इक्विटी 2 से ऊपर है। अप्लाई करने से पहले सोच लेना। लेने से देने ना पड़ जाए।

Point but

SME stock now like Satta Bazar, Fundamental na bhi fir bhi list 100% premium
so there are no thin much more if subscription is good and andar se awaz aaye ye Company paida bana ke degi then kud pado

this is my thinking
also my risk ability high so think as per your risk capability .

Substandard co with below Avg financials

​@Mr.Nc @Rajesh s.  Beeline Capital & Spead X Securities (Combo is Back) .. Hope you guys remember me from KODY Tech Page .. KODY 160/- vado 320/- .. ✌️

First SME IPO with mandatory T+3 listing

This will be promoted/managed by retired chacha from Sonipat.

​@ARJUN'S EYE @MVP , chacha paise dete hai kya agar becha hua maal niche khule to ?
Sun ne aaya hai payment related issues hai shayad.

All buying closed.
No payment issue from CHACHA. @GrayIsTheNewBlack

💎Rajkot💎

They are Leuva Patel Group.

Hi @Raju Hiralal Chavda ,

if we looks subscription speed, it is also one of block and unblock game.

One good reason at first glance is LM.👍

One glance and it seems completely avoidable. Not analyzing further and complete avoid.

Subscribe/oversubscribe fir bhi ho jayega but not of interest to me.

Keep minting!

​@NeoLongus 

thank u for reply and your Advice i respect your knowledge

i also long term hold any fundamental stocks

​@NeoLongus Perfectly said 9.2
I'm in the same business.
Will avoid this one, because of many other reasons also.

cooked financial?

​@ratna ratna nhi sir maine nhi cook nahi kiya hai mai toh bas puch raha hu, and yes i am still a kid , but trying to be better man every day. happy investing

​@Manan Surana 

What a nice Answer sir, like hard slap

@ratna ratna 
first you read & think carefully after then pass the comments