MCON Rasayan India Limited IPO

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i. MCON Rasayan is in the business of manufacturing, marketing and selling of modern building materials and construction chemicals with a suite of more than 80 products which includes a range of construction materials and construction chemicals in both powder and liquid forms. Their powder products such as ready mix plaster, tile adhesives, block adhesives, wall putty, micro concrete & polymer mortar, engineering non shrink grouts and floor hardeners are widely used in the building construction segment. Their liquid portfolio having products such as poly-urethane (PU) based liquid membrane, bonding agents, paints, anti-corrosive coatings, concrete admixtures and curing compounds. The products are marketed and sold under the “MCON” brand.

ii. The company has two manufacturing plants in Valsad and Navsari, Gujarat. Their plant at GIDC Sarigam, Valsad, Gujarat mainly manufactures admixtures, wall putty, tile adhesives, paints, concrete repair systems and waterproofing systems and has an installed capacity of 2,500 MTPA

iii. MCON Rasayan supply its products to more than 100 distributors and dealers which in turn supply them to more than 1300 retailers based in the States of Maharashtra, Gujarat and Rajasthan who serve various developers, contractors and architects in these western regional markets.

Competitive Strengths

i. Comprehensive product portfolio
ii. Diverse customer base
iii. In-house research and development of products

 

Objects of the MCON Rasayan India Limited IPO:

The Company proposes to utilize the funds towards the following objects: i. Funding the working capital requirements of the company ii. General Corporate Purposes  
DRHP of MCON Rasayan India Limited IPO
RHP of MCON Rasayan India Limited IPO

MCON Rasayan India Limited IPO Details:

Open Date: Mar 06 2023
Close Date: Mar 09 2023
Total Shares: 2,000,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 6.84 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 40 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 17 2023

Promoters And Management:

Mahesh Ravji Bhanushali is the Promoter of the Company and Chairman & Managing Director of the Company. He has been the main guiding force behind the growth and business strategy of the Company. He has more than 14 years of experience in dealing in business of construction chemical. Puja Mahesh Bhanushali is a Non- Executive Director in the Company. She holds a master’s degree in Commerce from University of Mumbai. She has been associated with the Company since incorporation. She looks after human resource related activity in the Company. Chetan Ravji Bhanushali is an Executive director of the Company. He was appointed on the Board with effect from September 30. 2021 He has an experience of 11 years in construction & chemical industry. He looks after the sales and receivables of the Company.  

Financials of MCON Rasayan India Limited IPO:

Particulars ( In Lakhs ) 3MFY23 2022 2021 2020
Revenue from Operations 654 1921 897 896
Other Income 0.1 0.7 2 0.3
Total Revenue 654 1922 899 896
Cost of Materials Consumed 362 1114 441 423
Changes in inventories -12 -133 -51 -23
Employee Benefits Expense 73 226 149 161
Other Expenses 175 578 267 267
EBITDA 54 136 92 67
Depreciation & Amortisation 7 32 27 31
Finance Cost 15 44 39 31
EBIT 47 104 65 36
OPM (%) 8.39% 7.11% 10.33% 7.55%
PBT 31 59 25 5
Taxes 8 15 6 1
PAT 23 44 18 3
NPM (%) 3.59% 2.31% 2.08% 0.40%
No.of Shares 65 65 65 65
EPS 0.35 0.67 0.28 0.05
P/E 112.37 59.40 141.19 730.60

Comparison With Peers:

Name of the Company Revenue (Cr) Profit (Cr) P/E EPS CMP Mcap (Cr)
MCON RASAYAN INDIA LIMITED 26 0.9 28.09 1.42 40 26
Asian Paints Limited 33,594 3,811 68.8 18.57 2738 262,676
Pidilite Industries Limited 11,617 1,257 93 13.19 2276 115,677
Kansai Nerolac Paints Limited 7,346 391 57.7 5.20 419 22,592

Recommendation on MCON Rasayan India Limited IPO:

Review and Recommendation of Mcon Rasayan by IZ team is 4/10 1. MCON Rasayan India Limited manufactures, markets, and sells over 80 powder and liquid construction materials and chemicals. Their products are marketed and sold under the “MCON” brand. 2. Its powder products are utilised in building construction, including ready mix plaster, tile adhesives, block adhesives, wall putty, micro concrete & polymer mortar, engineered non shrink grouts, and floor hardeners.  Its liquid range includes poly-urethane (PU) liquid membrane, bonding agents, paints, anti-corrosive coatings, concrete admixtures, and curing compounds. 3. They have two Gujarat factories in Valsad and Navsari. They sell to over 100 distributors and dealers, who sell to over 1300 retailers across Maharashtra, Gujarat, and Rajasthan who serve developers, contractors, and architects in these western regional markets. 4. Before shipping, their items are tested to meet industry requirements. They examine compressive strength, alkali content, harden concrete permeability, water retention efficiency, currying efficiency, special gravity, and solid content. These tests verify their products fulfil client safety, durability, and consistency demands. 5. India's modern building materials and construction chemicals sector is competitive. Organised industry participants compete by offering high-quality, consistent, and timely products and value-added services. Their competitors sell similar things. 6. They establish strong client relationships by ensuring product quality, delivery, innovation, and customization. Asian Paints, Pidilite, Astral, and Ultratech are their main competitors. 7. The Revenue has Increased from Rs.8 Crore in FY20 to Rs.19 Crore in FY22. 8. The EBITDA has Increased from 67 Lakhs in FY20 to 1 Crore in FY22. 9. The PAT has Increased from 3 Lakhs in FY20 to 44 Lakhs in FY22. 10. As per FY22, CFO/EBITDA is (-1.43) and Debtors Days is 98. 11. As per estimated FY23, EPS is 1.42,  Market Capitalization is 26 Crore & P/E is 29x.  

Lead Manager of MCON Rasayan India Limited IPO:

  1. GYR CAPITAL ADVISORS PRIVATE LIMITED

Registrar of MCON Rasayan India Limited IPO:

  1. Link Intime India Private Limited

Company Address:

MCON Rasayan India Limited 101/A, 1st floor, Maxheal House, Plot-169 CTS-104 Bangur Nagar, Goregaon West, Near Ayyappa Temple, Mumbai- 400090 Phone: +91 86559 88698 Email: compliance@mconrasayan.com Website: http://www.mconrasayan.com/  

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