Amkay Products Limited IPO

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The company is a leading manufacturer, assembler, and marketer of a broad range of medical devices, disposables, and healthcare products widely utilized across healthcare centers, hospitals, clinics, and nursing homes throughout India. Their portfolio includes essential items such as Face Masks, Alcohol Swabs, Lancet Needles, Nebulizers, Pulse Oximeters, Surgeon Caps, and more. Additionally, they have diversified into the branding and marketing of other health-related products like Diapers, Plastic Gloves, and Suction Machines.

Historical Growth and Expansion

Founded in 2008, they began their journey in a modest 980 sq. feet manufacturing unit in Vasai, Mumbai, initially focusing on a single product. Over time, their product range expanded, necessitating larger manufacturing spaces. By 2012, they relocated to a 20,000 square feet facility in the Acchad Industrial Area, Thane, significantly scaling up their manufacturing capabilities. This facility now produces a wide array of their flagship products, including Face Masks, Alcohol Swabs, Nebulizers, and Surgeon Caps, among others.

In 2014, to manage their growing inventory, they leased a warehouse in the same industrial area. Their expansion continued with the purchase of another manufacturing site in 2016 at the same location, dedicated to producing Bio Bags, reflecting their commitment to product diversification and sustainability.

Product Portfolio and Operations

Today, their portfolio boasts over 30 products categorized into Respiratory Disease Related Medical Devices, Surgical Disposables, Home Healthcare Products, and other healthcare essentials. They are actively manufacturing over 20 products and are involved in branding and trading an additional 10 products. Their facilities are equipped with state-of-the-art machinery, testing laboratories, and other handling equipment, all housed within a total area of approximately 26,000 sq. ft.

Market Presence

The vast majority of their revenues, consistently above 98%, are generated from domestic sales, with a small but growing percentage derived from exports, showcasing their strong local presence and burgeoning global outreach.

In conclusion, their company is not just a medical product provider; they are a critical partner in the healthcare infrastructure of India, dedicated to improving patient care and enhancing health outcomes through innovation, quality, and leadership in the medical device industry.

Objects of the Amkay Products Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objectives: i. Funding Capital Expenditure towards the installation of additional Machinery; ii. To meet working capital requirements; and iii. General Corporate Purpose.
DRHP of Amkay Products Limited IPO
RHP of Amkay Products Limited IPO

Amkay Products Limited IPO Details:

Open Date: Apr 30 2024
Close Date: May 03 2024
Total Shares: 2,292,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 12.61 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 52 - 55 Per Equity Share
Listing At: BSE SME
Listing Date: May 08 2024

Promoters And Management:

Kashyap Pravin Mody, is one of the Promoter and Chairman & Managing Director of the Company. He has been associated with the Company since incorporation. He has completed his Bachelor of Commerce from University of Bombay, in 1992. He has a work experience of more than 20 years in the field of Manufacturing of Medical and Surgical Equipment Industry. He is looking after core management of the company and entrepreneur, active and enthusiastic in business activities. He is primarily responsible for the performance and supervision of Marketing and Production Department of the Company, including but not limited to developing strategic plans, promotion of production and growth of the Company. Hemanshu Kantilal Batavia, is one of the Promoter and the Whole Time Director and CFO of the Company. He has been on the Board of Directors of the Company since 2011. He has completed his Senior Secondary (12th) from Maharashtra State Board of Secondary and Higher Secondary Education in 1991. He has a work experience of over 12 years in the Manufacturing of Medical and Surgical Equipment Industry. is responsible for handling the general administration and Accounting, Financial, Taxation and Legal operations, statutory compliance and effective implementation of the same. He is responsible for the expansion and overall management of the business of the Company and his leadership abilities have been instrumental in leading the core team of the Company. Ajay Somabhai Mehta, is a Non-Executive Director of the Company. He has been appointed at the Board meeting dated June 26, 2023. He has completed her Bachelor of Commerce from University of Bombay in 1987 and Diploma in Computer Programming and Application from United Kingdom in 1989. He has a work experience of 25 years in the field of finance and accounts. He is responsible for handling the financial & accounting activities of the company.

Financials of Amkay Products Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 4,070 3,650 2,786 2,275
Other Income 2 29 39 111
Total Revenue 4,072 3,679 2,825 2,386
Cost of Goods Sold 2,351 1,750 1,237 1,347
Purchases of Stock in Trade 450 1,124 844 372
Change in Inventories -12 -72 -37 -102
Employees Benefit Expenses 267 234 193 176
Other Expenses 555 349 235 227
EBITDA 460 295 352 366
Depreciation & Amortisation 28 54 72 51
Finance Cost 15 38 47 39
EBIT 432 241 281 315
OPM (%) 11.31% 8.01% 12.47% 15.34%
PBT 418 204 234 276
Tax 105 57 83 61
PAT 313 147 151 215
NPM (%) 7.68% 3.99% 5.35% 9.03%
No.of Shares 86.55 86.55 86.55 86.55
EPS 3.61 1.69 1.74 2.48

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Amkay Products Limited 28 2 1.74 31.5 55 48
Hemant Surgical Industries Limited 109 8 413.07 19.1 141 147
QMS Medical Allied Services Limited 104 6 3.57 21.8 110 196
* All the data is as per FY23.

Recommendation on Amkay Products Limited IPO:

1. The company has grown from a modest beginning in a rented facility in Vasai, Mumbai, to a significant player in the healthcare product manufacturing industry in India. Their operations initially focused on producing a single product and have since expanded to encompass a comprehensive portfolio that includes medical devices, disposables, and various healthcare products such as face masks, alcohol swabs, lancet needles, and more. 2. Product Portfolio Today, their product portfolio exceeds 30 items, focusing on segments such as respiratory disease-related medical devices, surgical disposables, home healthcare products, and other healthcare necessities. Their manufacturing operations primarily produce over 20 products, while they also engage in the branding and trading of over 10 additional products. 3. Operational Excellence Their manufacturing facilities are equipped with state-of-the-art machinery, a testing laboratory, and other essential handling equipment, ensuring a seamless production process. 4. Market Presence and Export They have a strong market presence across India, with domestic sales comprising the majority of their revenue. Additionally, they have tapped into international markets, exporting products to countries like Bhutan, Nepal, and Qatar. This international reach, although currently modest, represents potential growth areas for their operations. 5. Competitive Landscape The healthcare product market in India is intensely competitive, involving both organized and unorganized sectors. Their competitive edge is maintained through aggressive cost management, continuous technological upgrades, and a focus on product durability and reliability. Competitors like Hemant Surgical Industries Ltd. and QMS Medical Allied Services Limited represent significant market players with whom they compete on aspects such as pricing and product quality. 6. The Revenue has Decreased from Rs.40 Crores in FY21 to Rs.28 Crores in FY23. 7. The EBITDA has Decreased from 4 Crore in FY21 to 3 Crores in FY23. 8. The PAT has Decreased from 3 Crore in FY21 to 1.5 Crore in FY23. 9. As per FY23, CFO/EBITDA is 0.87, As per FY24, EPS is 3.31, 10. Market Capitalization is 48 Crore & P/E is 16.58x based on FY24.

Lead Manager of Amkay Products Limited IPO:

  1. Hem Securities Limited

Registrar of Amkay Products Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Amkay Products Limited Bunglow No. 68, Rashmi Park, CHS Ltd., Dhumal Nagar Waliv Road, Vasai, Thane 401208 Phone: +91-9152094440 Email: cs@amkayproducts.com Website: http://www.amkayproducts.com/

Discussion on Amkay Products Limited IPO:

1 Comment

    Avoid. Over valued and growth is not available in the business

    Reply

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