AMBO Agritec Ltd IPO
i. Ambo Agritec Limited is primarily engaged in the business of Manufacturing of Biscuits, outsourced manufacturing of Edible Oils, Vanaspati and Bengali Speciality Products (through third parties). In addition to this, the company is also engaged in tradingof Crude Linseed Oil, Soyabean Meal.Our Company use rawmaterial of premium quality sourced from reputed local suppliersfor Biscuits and raw materials imported for Edible Oils & Vanaspati, which help us to ensure the quality of the products.
ii. The products are marketed under its own brand names “Happy Bites” for Biscuits, “Happy Heart” for Edible Oil, “Ambo Gold”& “Vanaspati 2000”for Vanaspati and “Max Health”for Bengali Speciality Products.
iii. The company maintains hygienic norms and use good quality raw materials for manufacturing of its products. With a clientcentric approach, the Company strives hard for utmost contentment of the customers. The manufactured products areprepared completely under hygienic atmosphere by the professional makers. They have been certified by Food Safetyand Standards Authority of India (FSSAI) for the quality management systems of the Company in relation to their products
iv. The Company Operates in the following segments:
1. Manufacturing of Biscuits (at their own factory)
2. Outsourced Manufacturing of Edible Oil, Vanaspati, Bengali Speciality Products etc. (through third party)
3. Trading of Crude Linseed Oil, Soyabean Meal etc.
v. Competitive Strengths
i. Organizational stability along with management expertise.
ii. Smooth flow of operations.
iii. Well-defined organizational structure.
Objects of the AMBO Agritec Ltd IPO:
AMBO Agritec Ltd IPO Details:
|Open Date:||Nov 21 2022|
|Close Date:||Nov 24 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Issue|
|Issue Size:||10.20 Cr.|
|Lot Size:||4000 Shares|
|Issue Price:||₹ 30 Per Equity Share|
|Listing At:||BSE SME|
|Listing Date:||Dec 02 2022|
Promoters And Management:
Financials of AMBO Agritec Ltd IPO:
|Particulars (in crores)||Jun-22||Mar 22||Mar-21|
|Revenue from operations||15||94||47|
|Cost of Materials Consumed||14||84||42|
|Purchase of Stock-in-trade||0.1||3||0.2|
|Changes in Inventories of Finished Goods||0.1||-0.4||-0.2|
|Employee Benifit Expense||0.4||0.9||0.5|
|Profit (Loss) before tax||0.6||1||0.2|
|Profit (Loss) for the period||0.4||1||0.1|
Comparison With Peers:
Recommendation on AMBO Agritec Ltd IPO:
Review and Recommendation of Ambo Agritech SME IPO by IZ team is 6/10
1. Ambo Agritec Limited IPO is primarily engaged in the business of Manufacturing of Biscuits, outsourced manufacturing of Edible Oils, Vanaspati and Bengali Speciality Products (through third parties). 2. The Company use raw material of premium quality sourced from reputed local suppliers for Biscuits and raw materials imported for Edible Oils & Vanaspati 3. For manufacturing biscuits they have factory in Raniganj in the state of West Bengal. 4. The products are marketed under brand names “Happy Bites” for Biscuits, “Happy Heart” for Edible Oil, “Ambo Gold” & “Vanaspati 2000” for Vanaspati and “Max Health” for Bengali Speciality Products. 5. Revenue in FY20 was 73 Crores which was reduced to 47 Crores in Fy21 due to covid-19 but again rose to 94 Crores in Fy22. Out of 94 Crores revenue in Fy22, Edible oil contributes 76 Crores, Vanaspati contributes 7 Crores and Biscuits ~7 Crores. 6. Debt as on 30.06.2022 is ~11 Crores and Net-worth of ~4 Crores. So, D/E is 2.74 (high). 7. PAT in Fy22 was 119 lacs and total outstanding shares post IPO would be ~93 lacs, so, EPS would be 1.26 and asking P/E would be 23x looks reasonable. 8. Mcap = 28 Crores.