A G Universal Limited IPO

Apply 0
Avoid 0

i. A G Universal Limited deals in trading of various products including Stainless Steel Pipes, Mild Steel Pipes, ERW Black Pipes, GI Pipes, Hollow Sections, uPVC Pipes cPVC Pipes, TMT Bars, CR Coils and HR Coils .

ii. The company acts as a dealer for Surya Roshni Limited, Jindal Supreme (India) Private Limited, Swastik Pipe Limited, Ravindra Tubes Private Limited, Sks Ispat & Power Ltd, etc. The company has strengthened its position as one of the suppliers of high-end industrial MS Tubes, GI Pipes, and Hollow Sections

iii. The company deals in trading of various products as mentioned below:

i. ERW Pipes & Hollow Section Pipes

Hollow Section Pipes: Hollow section is a type of metal profile which has a hollow tubular cross-section. It consists of structural steel. The flat steel plate is gradually changed to become round.

ii. ERW Pipes: ERW stands for Electrical Resistance Welded. ERW pipes are manufactured by cold forming a flat steep strip into a rounded tube and passing it through a series of forming rollers to obtain a longitudinal seam.

iii. MS Pipes: MS (Mild Steel) pipes are used for plumbing, air conditioning, ventilation, heating and firefighting

iv. Hot & Cold Rolled Strips & Sheets: Hot-rolled strips and sheets are the steels that have been roll-pressed at very high temperatures over 1,700˚F, which is above the re-crystallization temperature for most steels.

v. TMT/Beam/Channel/Angle

vi. cPVC Pipes & Fittings

Competitive Strengths

i. Experienced Promoter and their Network in the Trading Community
ii. Quality Policy
iii. Strengthen human capital
iv. Existing client and supplier relationships

Objects of the A G Universal Limited IPO:

The proceeds from the issue will be used for the following objects: i. To meet the working capital requirements of the company. ii. General corporate purposes and issue expenses.
DRHP of A G Universal Limited IPO

A G Universal Limited IPO Details:

Open Date: Apr 11 2023
Close Date: Apr 13 2023
Total Shares: 1454000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 8.72 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 60 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 24 2023

Promoters And Management:

i. Mr. Amit Gupta, aged 48 years, is Promoter and Chairman & Managing Director of the Company. Mr. Amit Gupta started his business in 1995 after completing his Higher Secondary Education by setting up a plant of spices under the brand name of SLM.. He possesses a deep understanding of steel and pipes and live plants. ii. Mr. Kaushal Gupta, aged 29 years, is the Whole-time Director of the Company. Mr. Kaushal Gupta is associated with the company since 2021. He holds a Bachelor of Science and a Bachelor of Education from reputed universities in India. He has extensive experience in the industry and offers the company a new direction and edge with his organisational skills and experience. iii. Mrs. Bharti Gupta, aged 46 years, is the Promoter and Non-Executive Director of the Company. Mrs. Bharti Gupta has been actively involved in the business from the year 2018. She is looking after the Human Resource Management of the company. She is also looking after the investment and CSR part of the businesses. Since she joined, the company has come a long way in terms of growth and profitability, reducing the employee turnover to a great extent.

Financials of A G Universal Limited IPO:

Particulars (in Lakhs) 2022 2021 2020
Revenue From Operations 7,046 3,844 1,995
Purchases of Stock-in-Trade 6,866 3,765 1,669
Change in Inventories -37 -50 207
Employees Benefit Expenses 43 23 31
Other Expenses 31 19 14
EBITDA 143 87 74
OPM 2.03% 2.26% 3.71%
Other Income 28 20 13
Depreciation 7 5 5
Finance Cost 73 82 75
PBT 91 20 7
Tax 26 5 2
Exceptional Items 6 0 0
PAT 71 15 5
NPM 1.00% 0.39% 0.25%
Shares 54.84 54.84 54.84
EPS 1.29 0.27 0.09

Comparison With Peers:

Name of the Companies Revenue (Cr) Profit (Cr) EPS P/E CMP MCap
AG Universal Limited 52 1.7 3.09 20 60 32.9
Rathi Bars Limited 421 3 2.05 10.7 22 36
Vaswani Industries Limited 400 8 2.74 7.76 21.3 63.9
Adishakti Loha and Ispat 5.48 0.1 0.22 337 7.4 3.37
Note: Data of FY2023 is taken for comparison.  

Recommendation on A G Universal Limited IPO:

Review and Recommendation of AG Universal by IZ team is 3/10 1. A G Universal Limited deals in trading of various products including Stainless Steel Pipes, Mild Steel Pipes, ERW Black Pipes, GI Pipes, Hollow Sections, uPVC Pipes cPVC Pipes, TMT Bars, CR Coils and HR Coils . 2. The company does not have any manufacturing units as their whole income comes from trading. 3. The revenue from trading of various products as mentioned above has increased from ~20 Cr in FY20 to ~70 Cr in Fy22. However, there is de-growth in FY23 if you annualise 8Mfy23 revenue numbers. The annualised revenue is ~52 Cr in Fy23. 4. As the business is of trading, the EBITDA margins are very low in the range of 2-3%. The margins over the years are declining. 5. Asking P/E is 20x which looks very high.

Lead Manager of A G Universal Limited IPO:

  1. Share India Capital Services Private Limited

Registrar of A G Universal Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

A G Universal Limited F-1, 34/1, Vikas Apartments, East Punjabi Bagh, West Delhi, New Delhi - 110026 Phone: +91 9811100759 Email: info@aguniversal.co.in Website: https://aguniversal.co.in/

Discussion on A G Universal Limited IPO:

1 Comment

Leave a Reply