(i) The Aaron Industries Limited was founded by Mr. Amar Chinubhai Doshi in the year 2013 as a separate entity for elevator industry to provide an exceptional design in Elevator cabins and started their own journey as group Company of MOTI Group. Within the short span of time, the company has changed the elevator industry from simple cabins to extra-ordinary designer cabins.
(ii) The Company involves in Manufacturing and Trading of Elevator products and other elevator parts with the continuation of the existing business of MOTI group. Currently, they are providing all Elevator product and parts under one roof. It includes Elevator cabins,Doors, Frem, Header,Traction Machineand etc. From designing ultra-modern, up-to-the-mark cabins for luxurious properties-residential as well as commercials, they give customers an artistic edge that enhances their property and provides customer satisfaction.
(iii) The Company total revenue increased from 39.07 Lakh in FY14 to 1,179.14 Lakh in FY18, representing a CAGR of 97.67 %. Their EBITDA increased from 1.45 Lakh in FY14 to 160.73 Lakh in FY18, representing a CAGR of 156.42%.
Promoters of Aaron Industries Limited Company are:
1. Mr. Amar Chinubhai Doshi
2. Mr. Karan Amar Doshi
3. Mr. Monish Amarbhai Doshi
4. Ms. Radhika Amar Doshi
5. Ms. Toral Karan Doshi
6. Ms. Bhoomi Monish Doshi
(i) Authorized Share Capital
50,00,000 Equity shares at FV@10)
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(35,25,838 Equity Shares at FV@10)
(iii) Present Issue
( 12,57,000 Equity Shares at FV@10)
(iv) Reservation for Market Maker 63,000 Shares at FV@10)
(v) Reservation for QIB & HNI 5,97,000 Equity Shares at FV@10)
(vii) Reservation for Retail 5,97,000 Equity Shares at FV@10)
(viii) Paid Up Share Capital after the issue
Financials of Aaron Industries Limited IPO:
1. Assets and Liabilities Key Parameters
2. Profit n Loss Key Parameters
3. Cash Flow Statement(all figures in lacs)
(i) Net Cash Generated from Operation
(ii) Net Cash Generated from Investment
(iii) Net Cash Generated from Financing Activity
(iv) Total[ (i)+(ii)+(iii) ]
(v) Cash and Cash Equivalents at the Beginning of the Year
(vi) Cash and Cash Equivalents at the end of the Year
Key Notes:a) The Revenue is growing at CAGR of 134.39% from FY14 to FY18.
b) The PAT is growing at CAGR of 235.95% from FY14 to FY18.
c) Don't get excited with the CAGR growth of Revenue and PAT, as this growth is mainly due to remarkable performance shown in FY18 which is bit surprising though.
d) The Annualized EPS[ Post Issue] =2.24d) P/E(post issue)= 17[ High].
e)P/B(post issue)= 2.18f)D/E(post issue) =0.40( Ideal)
g)Mcap/Sales(ideally <2)= 1.541 on FY18 sales(Inline).
h) The Company's EBITDA Margins was in the range of 3-5% until FY17, but surprisingly it has raised to 14% in FY18[ Bit Confusing]i) In spite of showing 20 foldincrease in PAT in FY18 as compared to last year, the cash flow from operation is only Rs.5000. Attributing mainly due to an increase in inventories from 1.49 Cr in FY17 to 3.32 Cr in FY18. This clearly shows the operational inefficiency of the company.[Big Negative]
Comparison With Peers:
We believe that none of the listed companies in India offer products or services across the various business segments in which Aaron Industries operate.
Recommendation on Aaron Industries Limited IPO:
Review and Recommendation of Aaron Industries Limited IPO from our IZ Team is:3/10
[ The Surprised jump of 20x in PAT in FY18 as compared to last year is hard to digest. The Inventories too has jumped to 3.32 Cr in FY18 as compared to 1.49 Cr in FY17. The Operational inefficiencies exist in the company which can be easily verified by the fact that the in spite of showing 20x spikes in PAT, the Cash flows from operations is only 5000.]