Esprit Stones Ltd IPO: Review, Valuation, Opening Date & GMP

Esprit Stones Limited IPO - Complete Overview

Esprit Stones Limited IPO an SME IPO is a book-built issue of Rs.50.42 crores by Esprit Stones Limited which was, established in 2016, and develops engineered quartz and marble surfaces. With two polishing lines and three pressing lines, the Manufacturing Facility I can produce around 72 lakh square feet annually as of March 2024. In addition, it licensed its Manufacturing Facility II to produce quartz grit and quartz powder, which are the key raw materials used to make engineered quartz. Unsaturated polyester resin is manufactured in the company's third plant.

The company's certifications include ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, NSF, and Green Guard.

By May 31, 2024, the firm employed 295 employees across many departments.

Dear readers, we are pleased to provide details about the approaching SME IPO. The company plans to launch its IPO on July 26, 2024. Let's take a closer look at the IPO's offerings below.

 

 

Esprit Stones Limited IPO Overview

Esprit Stones' IPO of Rs.50.42 crore comprises a wholly Fresh Issue of 57.95 lac Shares (amounting to Rs.50.42 crores). This SME IPO will be available to investors on July 26, 2024, and conclude on July 30, 2024. The anticipated listing date for the IPO is Friday, August 2, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.82 to Rs.87.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 56.07%, while profit after tax (PAT) increased by 190.04% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.27,477.82 lac.

• The net worth of the company is Rs.7,238.80 lac.

• The company's EBITDA is Rs.1,869.1 lac.

• The total assets of the company are Rs.27,459.35 lac.
  
  

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	27,459.35	23,802.24	18,069.74
Total Revenue	27,477.82	17,606.52	19,002.60
PAT	1,031.73	355.72	1,850.53
Net Worth	7,238.80	6,227.81	5,893.32
Reserve & Surplus	5,623.80	5,277.81	4,943.32
Borrowing	12,541.91	11,879.55	5,799.76

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lac)

Net Cash Flow In Multiple Activities	Six months concluded Sep 2023	FY 2023	FY 2022
Net Cash Flow Operating Activities	891.15	-2,851.54	2,038.63
Net Cash Flow Investing Activities	-570.37	-2,641.04	-2,527.83
Net Cash Flow Financing Activities	-44.75	5,427.68	552.14

Product-wise Revenue Breakdown For The Last Three Fiscals

(Amount in Lac)

Products	Six months concluded Sep 2023	FY 2023	FY 2022
Engineered Stones	10,165.56	14,452.47	18,504.61
Unsaturated Polyester Resin	4,109.73	2,563.22	-
Total	14,275.29	17,015.69	18,504.61

 

 

The Objective Of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• The Company will invest in its affiliate, Haique Stones Private Limited (HSPL)

• To repay or prepay outstanding borrowings and fund its working capital requirements.

• Corporate Purposes.

 

Peers of Esprit Stones Limited

(Figures as of Fiscal 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Pokarna Ltd.	2	21.23	23.65
Pacific Industries Ltd	10	2.72	74.08
Global Surfaces Limited	10	7.10	39.84
Elegant Marbles & Grani Industries Ltd.	10	8.31	28.54

 

Evaluation

The price of this IPO is Rs.82 to Rs.87 for each Share.

Evaluation Of P/E Ratio

Considering the FY ended 31 March 2023, with EPS of Rs.2.13 from the last year, the resulting P/E ratio is 40.84x.

Considering the weighted EPS of Rs.6.48 for the last three years, the P/E ratio is 13.42x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 41.53x.

Particulars	P/E Ratio
Highest	74.08
Lowest	23.65
Average	41.53

In simple words, the P/E ratio of Esprit Stones Limited-IPO (40.84x and 13.42x), compared with the industry’s average P/E of 41.53x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• Prominent participant in the rapidly growing Engineered Stones business

• Focus on quality and innovation.

• Strategic location and advanced manufacturing facilities

• Its Manufacturing Facility II now produces quartz grit, reducing its reliance on third-party sources and ensuring consistent and high-quality materials in its products. Backward integration provided the company with more control over raw materials. Its Manufacturing Facility II produces quartz grit, giving the company a competitive advantage in the market if it becomes short.

 

IPO’s Weaknesses

• Its production process is dependent on the cost and availability of raw materials. Any shortages or variations in raw material prices may have a significant negative impact on the company's financial situation, operating results, and cash flows.

• The United States of America accounts for a significant amount of its income stream, thus any negative developments in this market or restricted political or economic ties between India and the US might have a negative impact on the business.

• The company is currently growing its business and building a network of clients and distributors in areas where it doesn't already have a strong presence or track record, especially for engineered marble surfaces.

• Since exports account for a large percentage of its income, variations in exchange rates can have an impact on it.

• The company may continue to have negative cash flows from operating activities, which might have an extremely harmful impact on its financial situation, business prospects, cash flows, and operational performance.

• The company depends on outside parties to transport and export its completed goods, so any interruption in its business or a decline in the caliber of its services might negatively affect the business. 

 

IPO GMP Today

Esprit Stones Limited IPO’s latest GMP is Rs.33.

 

 

Esprit Stones Limited IPO Timetable (Tentative)

The IPO is scheduled from July 26 to July 30, 2024, with allotment on July 31, refund initiation on August 1, and listing on August 2, 2024.

Events	Date
IPO Opening Date	July 26, 2024
IPO Closing Date	July 30, 2024
IPO Allotment Date	July 31, 2024
Refund Initiation	August 1, 2024
IPO Listing Date	August 2, 2024

 

Esprit Stones Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 26, close on 30 July, and offer a total issue size of 5,795,200 Shares (aggregating up to Rs.50.42 Cr) comprising a whole fresh issue size of 5,795,200 Shares (totaling up to Rs.50.42 Cr).

IPO Opening & Closing date	July 26, 2024 to July 30, 2024
Face Value	Rs.10 per Share
Issue Size	5,795,200 Shares (totaling up to Rs.50.42 Cr).
Offer For Sale	NA
Fresh Issue	5,795,200 Shares (totaling up to Rs.50.42 Cr).
Listing At	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

Esprit Stones Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.139200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.278400.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Esprit Stones Limited IPO Reservation

Institutional Portion	18.55%
Retail Portion	32.47%
Non-Institutional Portion	13.91%
Others Portion	35.07%

 

Promoters And Management Of Esprit Stones Limited IPO

• Sunilkumar Lunawath

• Nitin Gattani

• Pradeepkumar Lunawath

• Sangeeta Gattani

• Anushree Lunawath 

• Siddhanth Lunawath

Pre-Issue Promoter Shareholding	100%
Post-Issue Promoter Shareholding	-

 

Esprit Stones Limited IPO Lead Managers

• Choice Capital Advisors Pvt Ltd

• Srujan Alpha Capital Advisors Llp

 

 

Dividend Policy

The company has no formal dividend policy.

 

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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