Ambey Laboratories Limited IPO

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Ambey Laboratories Limited is engaged in the manufacturing of agrochemical products aimed at protecting crops. With nearly four decades of experience in the agrochemical sector, we specialize in producing and supplying “2, 4-D base chemicals.” Their operations are characterized by the highest quality practices and compliance with stringent Environmental, Health, and Safety (EHS) standards in the chemical industry.

Manufacturing Facility and Quality Assurance

Their state-of-the-art manufacturing facility is located in Behror, Rajasthan, spanning 5 acres. The facility is equipped with advanced Programmable Logic Controller (PLC) and Supervisory Control systems, alongside a robust Quality Assurance Department. This department ensures rigorous testing at every stage of production using High-Performance Liquid Chromatography (HPLC), Gas Chromatography (GC), Ultraviolet (UV) spectroscopy, and other methodologies.

Product Range

They manufacture a wide range of agrochemical products, including:
i. 2,4-D Acid 98% TC                                                       ii. 2,4-D Sodium 95% SP
iii. 2,4-D Amine 866 | 720 | 480g/l SL                       iv. 2,4-D Ethyl Hexyl Ester 96% TC
v. 2,4-D Ethyl Ester 96% TC                                          vi. Chlorpyriphos 97%TC / 20%EC / 50%EC
vii. Thiamethoxam 96%TC / 25%WG / 75%SG       viii. Pretilachlor 95%TC / 50%EC / 37%EW
ix. Metribuzin 97%TC / 70%WS                                   x. Hexaconazole 92%TC / 5%SC / 5%EC / 10%EC
xi. Metalaxyl 98%TC / 35%WS

Their esteemed customer base includes large corporations such as Aromatic Rasayan Private Limited, JR Jindal Infraprojects Private Limited, and SC Formulator Co. Ltd.

Conclusion

Ambey Laboratories Limited stands as a trusted name in the agrochemical industry, backed by nearly four decades of expertise and a steadfast commitment to quality and environmental sustainability. Their state-of-the-art manufacturing facility, comprehensive product range, and strong client relationships position them as a leader in the market, dedicated to protecting crops and supporting the agricultural sector.

Objects of the Ambey Laboratories Limited IPO:

The company intends to utilize the Net Proceeds for the following objects: i. To meet Working Capital Requirements ii. General corporate purposes iii. Issue related expenses Total number of share issue :- i. Fresh issue is 6,258,000 shares, ii. Offer for Sale is 312,000 shares.

Ambey Laboratories Limited IPO Details:

Open Date: Jul 04 2024
Close Date: Jul 08 2024
Total Shares: 6,570,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 40.68 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 65 - 68 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 11 2024

Promoters And Management:

Mrs. Sarina Gupta is a member of promoters group, has been handling the human resource management of the company since 2018. In 2023 she has been appointed as Whole-time Director of the Company by the Board members and having major shareholding in her name. Mr. Abdul Quadir, aged 33 years is the independent director of the company. He is a Company Secretary with 06 years of experience in Company Secretarial including corporate affairs and governance. He is a Registered Independent Director (Registration No. IDDB-NR-202208-005108). He is a competent to handle the Property Laws Compliance, Listing Agreement Compliance and SEBI Regulation Compliance and He is the member of Audit Committee and NRC of the Company. Mrs. Rishita Gupta is a member of promoters group, has been handling the Administration of the Company since 2019. In 2023 she has been appointed as Non- Executive Director of the company by the Board members and she is the member of the Audit Committee and NRC of the Company.

Financials of Ambey Laboratories Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
10M-FY24
Revenue from Operations 8,174 8,460 10,482 10,032
Other Income 68 51 261 12
Total Revenue 8,242 8,511 10,743 10,044
Cost of Material Consumed 6,448 6,991 9,294 8,872
Changes in inventory 188 -101 -303 -519
Employees Benefit Expenses 191 195 242 170
Other Expenses 375 341 408 241
EBITDA 1,041 1,085 1,103 1,279
OPM (%) 12.63% 12.75% 10.26% 12.74%
Depreciation & Amortisation 322 297 296 283
EBIT 718 788 806 996
Finance Cost 410 305 184 158
PBT 309 483 622 838
Tax -725 126 165 235
PAT 1034 357 457 603
NPM (%) 12.54% 4.20% 4.25% 6.00%
No.of Shares 249.46 249.46 249.46 249.46
EPS 4.14 1.43 1.83 2.41

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Ambey Laboratories Limited 105 5 1.83 37.1 68 170
Atul Limited 5,428 507 174.19 60.1 6,586 19,389
Meghmani Organics Limited 2,553 238 9.35 N/A 82.7 2,104
* All the data is as per FY23.

Recommendation on Ambey Laboratories Limited IPO:

Review and Recommendation of Ambey Laboratories by team IZ is 3/10. 1. Ambey Laboratories Limited specializes in manufacturing agrochemical products, primarily focusing on '2,4-D base chemicals' for crop protection. With nearly four decades of industry experience, the company is committed to maintaining high-quality standards and adhering to Environmental, Health, and Safety (EHS) regulations. 2. Product Range Ambey Laboratories offers a diverse range of agrochemical products, including: i. 2,4-D Acid 98% TC                                                        ii. 2,4-D Sodium 95% SP iii. 2,4-D Amine 866 | 720 | 480g/l SL                        iv. 2,4-D Ethyl Hexyl Ester 96% TC v. 2,4-D Ethyl Ester 96% TC                                           vi. Chlorpyriphos 97%TC / 20%EC / 50%EC vii. Thiamethoxam 96%TC / 25%WG / 75%SG        viii. Pretilachlor 95%TC / 50%EC / 37%EW ix. Metribuzin 97%TC / 70%WS                                     x. Hexaconazole 92%TC / 5%SC / 5%EC / 10%EC xi. Metalaxyl 98%TC / 35%WS 3. Key Clients Ambey Laboratories caters to a significant customer base, including large corporates such as Aromatic Rasayan Private Limited, JR Jindal Infra-projects Private Limited, and SC Formulator Co. Ltd. 4. Competitive Landscape Ambey Laboratories operates in a highly competitive industry, primarily facing competition from larger corporates with substantial capital bases and broader product ranges. Key competitors include Atul Limited and Meghmani Organics Limited. 5. The Revenue has Increased from Rs.81 Crore in FY21 to Rs.104 Crores in FY23. 6. The EBITDA has Increased from 10 Crores in FY21 to 11 Crores in FY23. 7. The PAT has Decreased from 10 Crores in FY21 to 4 Crore in FY23. 8. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is 2.89, 9. Market Capitalization is 170 Crores & P/E is 23.4x based on FY24.

Lead Manager of Ambey Laboratories Limited IPO:

  1. Fast Track Finsec Private Limited

Registrar of Ambey Laboratories Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Ambey Laboratories Limited Ground Floor, Property No.555 Tarla Mohalla, Ghitorni, West Delhi New Delhi, -110030 Phone: 0124-4000788 Email: cs@ambeylab.com Website: http://www.ambeylab.com/

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