Manoj Ceramic LTD IPO- Review, Valuation, Date & GMP

Manoj Ceramic Limited IPO  - Complete Overview

Since 1991, Manoj Ceramic Limited has been selling ceramic tiles and tile adhesives with the brand "MCPL." They offer a variety of tiles in different shapes, colours, and sizes through dealers, showrooms, and direct sales to architects and builders. Notably, they don't manufacture these tiles, they just order it from a third party and sell it.

They have dealers in western and southern India, especially in Maharashtra, Goa, Tamil Nadu, and Karnataka. Showrooms are in Mumbai and Bangalore.

For tile adhesives, MCPL distributes them in Maharashtra and gets them from an outside manufacturer.

MCPL is known for its wide range of tiles and service to customers worldwide. They focus on quality and innovation and have been in business for nearly 30 years. They keep up with new technology, making them a trendsetter in the industry. MCPL is all about offering great choices for homes and continues to grow.

 

Manoj Ceramic Limited IPO Overview

Manoj Ceramic Limited IPO date is slated to be open for subscription from December 27, 2023, to December 29, 2023. This BSE SME IPO follows a Fixed Price Issue IPO.

Manoj Ceramic Limited IPO price is fixed at Rs. 62 per share. The upcoming BSE SME IPO will be listed on January 3, 2023.

The total issue size of this IPO amounts to Rs.14.47 CR.

 

 

Manoj Ceramic Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	27 December 2023
IPO Closing Date	29 December 2023
IPO Allotment Date	1 January 2023
Refund initiation	2 January 2024
IPO Listing Date	3 January 2024

 

Manoj Ceramic Limited IPO Details

IPO Opening & Closing Date	27 December to 29 December 2023
Face value	Rs. 10 per share
Issue Price	Rs. 62 per share
Lot Size	2000  Shares
Price of 1 lot	Rs. 1,24,000
Total Issue Size	2,334,000 shares (aggregating up to Rs. 14.47 Cr)
Fresh issue	2,334,000 shares (aggregating up to Rs. 14.47 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Purva Sharegistry India Pvt Ltd

 

 

Manoj Ceramic Limited IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	2,000
Maximum Lot Investment (Retail)	1 lot	2,000
Minimum Lot Investment (HNI)	2 lot	4,000

 

Company Financial

The company's recent financial overview indicates increased total assets, total revenue, and net worth. 

(Amount in Lakhs)

Period	Mar 31, FY 23	Mar 31, FY 22	Mar 31, FY 21
Total Assets	7,787.64	5,866.52	6,074.55
Total Revenue	7,493.48	4,499.62	3,730.84
PAT	362.43	94.50	8.24
Net worth	1,310.05	947.62	853.11
Reserve & Surplus	910.05	547.62	453.11
Total Borrowings	5,054.97	3,495.83	3,926.16

 

Region-wise Revenue Distribution

In FY23, the company saw significant revenue from Maharashtra, followed by contributions from Karnataka and Gujarat. Which was increased noticeably compared to the previous years.

(Amount in Lakhs)

Particulars	Mar 31, FY 23	Mar 31, FY 22	Mar 31, FY 21
Maharashtra	6,811.17	3,830.72	2,563.31
Karnataka	227.52	297.02	591.53
Tamil Nadu	--	120.83	241.93
Gujarat	189.64	49.39	114.87
Total	7228.33	4,297.96	3511.64

 

Revenue by Operations

Manoj Ceramic Limited experienced substantial revenue growth in FY23 compared to previous years, supported by increased operations and additional income sources.

(Amount in Lakhs

Particulars	Mar 31, FY 23	Mar 31, FY 22	Mar 31, FY 21
Revenue from operations	7,351.08	4,314.23	3,556.64
Other Operating Income	142.40	185.39	174.20
Total Revenue from operations	7,493.48	4,499.62	3,730.84

 

 

The Objective of the Issue

• To meet the working capital expenses.

• General Corporate Purpose.

 

Promoters and Management of Manoj Ceramic Limited IPO

1. Mr. Manoj Dharamshi Rakhasiya.

2. Mrs. Anjana Manoj Rakhasiya.

3. Mr. Dhruv Manoj Rakhasiya.

4. Mr.Akash Manoj Rakhasiya.

5. Mrs. Manasvi Dhruv Rakhasiya.

Pre-issue Promoter Shareholding	99.55%
Post-issue Promoter Shareholding

 

Manoj Ceramic Limited IPO Lead Managers

•  Swaraj shares and securities private limited

 

Peers of Manoj Ceramic Limited IPO

Among its peers, Manoj Ceramic Limited stands out with a higher face value.

Name of the Company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Manoj Ceramic Limited	100.00		241.62
Asian Granito India Limited	10.00	5.02	19.73
Murudeshwar Ceramics Limited	10.00	53.72	0.49
Orient Bell Limited	10.00	23.78	21.57

 

Evaluation

The IPO is priced within the range of Rs. 62 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 241.62 from the last year, the resulting P/E ratio is 0.26x.

- Taking into account the weighted EPS of Rs 142.03 for the last three years, the P/E ratio amounts to 0.44x.

    

Comparative Analysis with Listed Peers:

- Murudeshwar Ceramics Limited has a P/E ratio of 53.72 (the highest).

- Asian Granito India Limited has a P/E ratio of 5.02x (the lowest).

Consequently, the IPO Price range at a P/E of 0.26x. to 0.44x. is considered highly undervalued in comparison to its peers.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

 

IPO's Strengths

Building Strong Relationships: They focus on lasting relationships with their customers, and in the latest financial year, most of their revenue (91.26%) came from loyal customers who keep coming back.

Financial Resilience: Their overall income increased significantly by a large amount (63.41%) from the previous year to the current one. They also made more profit, going from Rs. 75.64 Lakhs to Rs. 367.95 Lakhs.

Consistent Financial Performance: Their financial health stays steady across different measures like profit margin, return on equity, and return on capital. This consistency shows that they're performing well financially.

Experienced Leadership: Their leaders have more than 31 years of combined experience. Key figures like CFO Pankaj Rakhasiya, Infra Manager Kiran Kanpara, President Sales Mahesh Sheth, and Purchase Manager Devendra Sanura bring stability and expertise to their team.

Experienced Promoters: Their leaders, including Kiran Kanpara and Mahesh Sheth, have been in the industry for a long time. This experience helps them make good decisions and run their operations effectively.

Adaptability and Innovation: Their team, led by experienced professionals, is good at predicting market trends and coming up with new ideas. This adaptability ensures that they meet the changing preferences of their customers.

 

IPO's Weaknesses

Customer Dependency: Over 91.26% of our revenue comes from the top 10 customers, making their business vulnerable to any loss or reduction in their purchases, impacting results and financial conditions.

Supply Chain Vulnerabilities: Their business is highly dependent on timely and adequate supply of finished products. Lack of firm commitments, informal arrangements, and potential engagements with competitors by suppliers pose risks to their procurement and business continuity.

Regulatory Compliance Challenges: Obtaining and renewing regulatory approvals is critical. Increasingly stringent regulations may lead to compliance-related costs and potential liabilities.

Growth Sustainability Challenges: Sustaining recent growth requires significant investments and effective risk management to avoid potential delays, increased costs, and lower product quality.

Third-Party Dealer Risks: Dependence on third-party dealers exposes them to risks like ineffective product selling, potential harm to their reputation, and non-exclusive relationships that may influence dealer preferences.

Distribution Network Challenges: Their ability to expand and manage the distribution network effectively is vital for growth. Dependencies on third parties and potential exclusivity arrangements with competitors pose challenges to their expansion plans.

 

IPO GMP Today 

The Last GMP of Manoj Ceramic Limited IPO was Rs.6.

 

Conclusion

With a rich history dating back to 1991,Manoj Ceramic Limited's IPO presents an opportunity for investors with its extensive industry experience, diverse product offerings, and a focus on innovation. The company's financial performance, leadership stability, and global reach contribute to its positive outlook. However, potential investors should carefully consider the highlighted strengths, weaknesses, and growth challenges before making investment decisions.

 

 

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.

 

 

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