Aztec Fluids & Machinery Limited IPO

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Established in 2010, they specialize in providing coding and marking solutions for various industries, including personal care, food and beverages, pharmaceuticals, and more. Their comprehensive product portfolio includes printers (continuous inkjet, thermal transfer over printers, drop on demand printers, piezoelectric printers, and laser printers), printer inks, and consumables like makeup and cleaning solvents. These products enable their clients to print important variable information like batch numbers, logos, barcodes, and promotional codes on diverse materials such as glass, steel, plastics, and packaging.

Key Services and Products

  • Printers: Continuous Inkjet (CIJ), Thermal Transfer Over (TTO), Drop on Demand (DOD), and piezoelectric (NIJ) printers.
  • Inks and Consumables: Printer inks, makeup, and cleaning solvents for optimal operation.

Strategic Partnerships Since 2015, they’ve been the exclusive distributor of Lead Tech (Zhuhai) Electronic Co. Ltd., China for CIJ and TTO printers across India and neighboring countries like Sri Lanka, Nepal, and Bangladesh. Their other printer models come from various global suppliers.

Manufacturing and Procurement They procure inks from Fluidtech Corp, a partnership led by their promoters, with whom they have a manufacturing and supply agreement. Their Ahmedabad manufacturing setup produces makeup and cleaning solvents, and they embed a PCB chipset into every cartridge to prevent counterfeits.

Infrastructure and Facilities

  • Ahmedabad Registered Office: Supports their regional offices in Mumbai, Kolkata, and Hyderabad.
  • Kanera Warehouse: Holds imported printers and serves as a base for printer assembly, configuration, and testing.
  • New Land Acquisition: Two plots in Kanera, Kheda, Gujarat will support their growth and printer testing needs.

Recent Acquisition They recently executed a term sheet to acquire Jet Inks Private Limited, a Chennai-based manufacturer of inks and printers. Upon completion, Jet Inks will become a wholly-owned subsidiary.

Geographical Reach and Client Base Their primary customer base is concentrated in Gujarat, Rajasthan, and Tamil Nadu. Their clientele includes notable companies like Astral Limited, ADF Foods Limited, and Surya Roshni Ltd.

Their diverse range of coding and marking solutions, combined with strategic partnerships, robust infrastructure, and experienced leadership, positions them as a prominent player in the industry.

Objects of the Aztec Fluids & Machinery Limited IPO:

The company intend to utilize the proceeds of the net issue to meet the following objects: i. Funding of the proposed acquisition of equity shares of Jet Inks Private Limited ii. Repayment of a portion of certain borrowing availed by our Company iii. General Corporate Purpose
DRHP of Aztec Fluids & Machinery Limited IPO
RHP of Aztec Fluids & Machinery Limited IPO

Aztec Fluids & Machinery Limited IPO Details:

Open Date: May 10 2024
Close Date: May 14 2024
Total Shares: 3,600,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 24.12 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 63 - 67 Per Equity Share
Listing At: BSE SME
Listing Date: May 17 2024

Promoters And Management:

Pulin Kumudchandra Vaidhya is the Chairman & Managing Director of the Company. He has been on the Board since incorporation. He is a visionary entrepreneur and has played a pivotal role in setting up and expanding business operations of the Company. He has total work experience of over 25 years of which around 22 years of experience is in the printer & ink industry. He has completed his Diploma in Business Management from Welingkar Institute of Management Development and Research, Mumbai, and also completed his Diploma in Electrical Engineering from Technical Examination Board, Gujrat in the year 1999. He currently looks after the overall management of the Company. Under his guidance, the Company has witnessed continuous growth. Amisha Pulin Vaidhya is the Whole-time Director of the Company. She has been on the Board since 2010. She has completed her Master of Commerce from Gujrat University in 2009. She has an experience of around 14 years in the printer & ink industry. She is currently looking after the HR, Admin and sales and marketing function of the Company. Kumudchandra Bhagwandas Vaidya is the Non-Executive Director of the Company. He has an experience of around 40 years in the various fields. He has completed his Bachelor of Commerce from Gujarat University in year 1977.

Financials of Aztec Fluids & Machinery Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 3,390 4,572 5,426 5,093
Other Income 78 71 27 90
Total Revenue 3,468 4,643 5,453 5,182
Cost of Material Consumed 2,060 2,899 3,384 2,989
Purchases of Stock-in-Trade 0 169 191 406
Change in inventories 0 0 0 -38
Employees Benefit Expenses 441 483 606 549
Other Expenses 530 609 773 606
EBITDA 438 482 499 671
Depreciation & Amortisation 38 32 30 19
Finance Cost 57 37 39 41
EBIT 399 451 470 651
OPM (%) 12.62% 10.39% 9.16% 12.94%
PBT 343 414 431 609
Tax 96 103 104 159
PAT 246 311 327 451
NPM (%) 7.10% 6.70% 6.00% 8.70%
No.of Shares 136 136 136 136
EPS 1.81 2.28 2.40 3.31

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Aztec Fluids & Machinery Limited 54 3 2.40 27.8 67 91
Control Print Limited 304 53 32.36 25.5 915 1,475
* All the data is as per FY23.

Recommendation on Aztec Fluids & Machinery Limited IPO:

Review and Recommendation of Aztec Fluids & Machinery by team IZ is 3/10. 1. The company specializes in providing comprehensive coding and marking solutions across various industries, including personal care, food and beverages, pharmaceuticals, construction, automotive, electronics, and chemicals. 2. Their diverse product lineup includes continuous inkjet printers (CIJ), thermal transfer overprinters (TTO), drop on demand printers (DOD), piezoelectric printers (NIJ), and laser printers. We also produce related consumables like printer inks and cleaning solvents. 3. As the exclusive distributor for Lead Tech (Zhuhai) Electronic Co., Ltd. in multiple countries, they offer specialized printers and equipment. They import certain printer types and are responsible for their configuration and testing based on customer specifications. 4. Their operations are bolstered by a manufacturing setup in Vatva, Ahmedabad, where they produce various inks and solvents. Their strategic approach includes embedding PCB chipsets in their cartridges to prevent counterfeiting. 5. They operate in a competitive sector, where product quality, technological innovation, cost-effectiveness, and service excellence are critical. They compete with both domestic and international firms, striving to maintain a competitive edge through superior product offerings and strong customer relationships. 6. The Revenue has Increased from Rs.34 Crores in FY21 to Rs.54 Crores in FY23. 7. The EBITDA has Increased from 4 Crores in FY21 to 5 Crores in FY23. 8. The PAT has Increased from 2 Crore in FY21 to 3 Crores in FY23. 9. As per FY23, CFO/EBITDA is 0.98, As per FY24, EPS is 4.42, 10. Market Capitalization is 91 Crore & P/E is 15.16x based on FY24.

Lead Manager of Aztec Fluids & Machinery Limited IPO:

  1. Hem Securities Limited

Registrar of Aztec Fluids & Machinery Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Aztec Fluids & Machinery Limited Part H Plinth,4th Floor, Takshashila Square, Near Krishnabag Four Rd Maninagar, Ahmedabad,-380028 Phone: +91-7048333211 Email: cs@aztecfluids.com Website: http://www.aztecindia.org/

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