Yash Optics & Lens LTD IPO: Review, Valuation, Date & GMP

Yash Optics & Lens Limited IPO  - Complete Overview

Established in the year 2010, Yash Optics & Lens Limited is involved in the manufacturing, trading, distribution, and supply of a comprehensive range of spectacle/optical lenses. 

The company offers a variety of lenses, ranging from single vision to advanced progressive lenses, customized progressive lenses, and personalized progressives for professionals, along with a wide range of coatings.

Yash Optics & Lens has been appointed by HOYA Lens India Private Limited as the exclusive distributor for selling, marketing, and distributing the "Pentax" brand of Ophthalmic lenses in India. 

The company's manufacturing facility is located at Kandivali (West), Mumbai, India.

With a presence across India, as of September 30, 2023, the company has generated revenue of 1,869.16 lakhs.

 

Yash Optics & Lens Limited IPO Overview

Yash Optics & Lens Limited IPO date is slated to be open for subscription from March 27, 2024, to April 3, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Yash Optics & Lens Limited IPO price is fixed in the range of Rs.75 to Rs.81 per share. 

The total issue size of this IPO amounts to Rs.53.15 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non-instituional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Yash Optics & Lens Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowings have also increased.

(Amount in Lakhs)

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	5,412.63	3,414.26	2,444.86
Total Revenue	1,869.16	3,980.39	2,986.04
PAT	422.52	806.58	681.67
Net worth	2,334.01	1,911.50	1,104.92
Reserve & Surplus	2,333.01	1,910.50	1,103.92
Total Borrowings	2,452.69	1,085.63	402.36

Revenue bifurcations of the company from manufacturing and trading activities

(Amount in Lakhs)

Particulars	30 Sep 2023	31 Mar 2023	31 Mar 2022
Manufacturing	1330.67	2919.96	2068.58
Trading	535.63	1048.85	906.45
Total	1,866.30	3,968.81	2975.03

Product-wise revenue breakup

(Amount in Lakhs)

Products	30 Sep 2023	31 Mar 2023	31 Mar 2022
Single Vision Lenses	450.19	826.39	710.73
Bifocal Lenses	205.65	462.26	357.31
Progressive Lenses	1,170.78	2,599.78	1,857.40
Special Category	39.67	80.38	49.59
Total	1,866.30	3,968.81	2975.03

Breakup of the company Revenue based on B2B and B2C channel

(Amount in lakhs)

Particulars	30 Sep 2023	31 Mar 2023	31 Mar 2022
Through Distributors	1,170.59	2,601.89	2,028.21
Direct Sale through the retail chain (branch and sale depot)	678.17	1,363.91	946.82
As distributors (on behalf of HOYA)	17.54	3.02	Nil
Total	1,866.30	3,968.81	2975.03

 

The Objective of the Issue

The company intends to utilize the proceeds of the Issue to achieve the following objectives:

1. Fund capital expenditure for establishing a manufacturing unit for backward integration.

2. Purchase of Plant and Machinery at existing manufacturing unit.

3. Repayment/ prepayment of certain borrowings availed by the Company.

4. Funding Working Capital Requirements of the Company.

5. General corporate purposes.

Peers of Yash Optics & Lens Limited IPO

Name of the Company	Face value (Rs)	EPS (Rs)	P/E Ratio
Yash Optics & Lens Limited	10.00	4.55	-
GKB Ophthalmics Ltd	10.00	(5.72)	(16.58)

 

Evaluation

The IPO is priced within the range of Rs.75 to Rs.81 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 4.55 from the last year, the resulting P/E ratio is 17.08x.

• Taking into account the weighted EPS of Rs 3.66 for the last three years, the P/E ratio amounts to 22.13x.

Comparative Analysis with Listed Peers

• The industry's average P/E is (16.58)x.

As a result, the IPO price range, with a P/E ratio ranging from 17.08x to 22.13x, seems exorbitantly priced to the industry average of (16.58)x.

 

IPO's Strengths 

• Offers a diverse selection of products that can be customized.

• Operates an in-house manufacturing facility with advanced machinery and processes.

• Boasts a product brand portfolio featuring around 37 brands, including "Pentax."

• Adopts a customer-centric business model.

• Ensures quality assurance.

• Led by experienced promoters and management team.

• Maintains a nationwide presence with customers across various regions.

• Avoids reliance on a single or a few customers.
  
  

IPO weaknesses 

• The company faces outstanding litigation.

• Lack of long-term agreements with suppliers for raw materials exposes it to risks of cost increases, shortages, or quality issues, impacting its business adversely.

• Negative cash flows have been experienced in previous years.

• Competes with alternative technologies and treatments that act as substitutes for optical/spectacle lenses.

• The company is exposed to foreign exchange control regulations, which could present risks associated with currency fluctuations.
  
  

IPO GMP Today 

The latest GMP of Yash Optics & Lens Limited is Rs.14.

Yash Optics & Lens Limited IPO timetable (Tentative)

Yash Optics & Lens Limited IPO is scheduled from March 27 to April 3, 2024, with allotment on April 4, refund initiation on April 5, and listing on April 8, 2024.

Events	Date
IPO Opening Date	March 27, 2024
IPO Closing Date	April 3, 2024
IPO Allotment Date	April 4, 2024
Refund initiation	April 5, 2024
IPO Listing Date	April 8, 2024

 

Yash Optics & Lens Limited IPO Details 

Yash Optics & Lens Limited IPO, with a face value of Rs.10 per share, opens on March 27 and closes on April 3, 2024, offering 6,561,600 shares at Rs.75 to Rs. 81 per share, with a lot size of 1600 shares, aiming to raise Rs.53.15 Cr, and will be listed on NSE SME.

IPO opening & closing date	March 27, 2024 to April 3, 2024
Face value	₹10 per share
Issue Price	₹75 to ₹81 per share
Lot Size	1600 Shares
Price of 1 lot	₹129,600
Issue Size	6,561,600 shares (aggregating up to ₹53.15 Cr)
Fresh issue	6,561,600 shares (aggregating up to ₹53.15 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Yash Optics & Lens Limited IPO Lot Details 

For Yash Optics & Lens Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.129,600 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.259,200.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

Yash Optics & Lens Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Promoters and Management of Yash Optics & Lens Limited

• Mr. Tarun Manharlal Doshi

• Mr. Dharmendra M Doshi

• Mr. Chirag Manharlal Doshi

Pre-issue Promoter shareholding	97.45%
Post-issue Promoter shareholding	71.63%

 

Yash Optics & Lens Limited IPO Lead Managers

• Shreni Shares Limited 
  
  

Dividend Policy

The company hasn't distributed any dividends over the past three years, and whether it will pay dividends in the future hinges on its financial performance.

 

 

Conclusion

Yash Optics & Lens Limited operates within a competitive and fragmented sector. Additionally, the company's valuation is relatively high. Investors are advised to perform a thorough analysis before considering investing their funds in this upcoming IPO to ensure favourable outcomes.

 

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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