Arham Technologies Limited IPO
i. Arham Technologies Limited is engaged in manufacturing of LED Smart Televisions, with different screen sizes under our brand ‘STARSHINE’. They also manufacture Fans, Air Coolers, and Mixer Grinders through third-party manufacturers under our brand ‘STARSHINE’. The company has a network of dealers and distributors across Chhattisgarh, Madhya Pradesh, Odisha, Vidarbha, Andhra Pradesh, and parts of Uttar Pradesh.
ii. Arham Technologies also serve under Original Equipment Manufacturer (“OEM”) business models for LED Televisions. Under the OEM model, they manufacture and supply products as per the requirements of our customers, who then further distribute these products under their own brands. With a primary focus on quality, Arham Technologies Limited has been catering to a number of regional brands in Central India. With serving Original Equipment Manufacturers (OEM), they have adopted a cost-effective pricing strategy that gives the clients an upper hand over other brands.
iii. Arham Technologies plans to add other products to its portfolio by way of white labeling, to be a part of a bigger portfolio of products. However, the company plans to keep its focus on sales of Smart Televisions by making schemes and offers centric on Televisions. The company is also setting up a manufacturing facility for Fans at its existing locations which shall give better margins and control in the supply chain as they do not have to depend on other manufacturers for procurement.
iv. Arham Technologies also do white labeling for various regional brands. Raipur enjoys a geographical advantage, as no big city is nearby of Raipur, and the Raipur market feeds the entire Chhattisgarh, Odisha, some parts of Madhya Pradesh, Vidarbha Region, and Jharkhand.
v. Arham Technologies has also launched its “D2C” website www.starshine.co.in for its products which will increase its sales, profits, and brand value and also provide direct benefit to the end users. The company is also listing its products on e-commerce platforms i.e. Amazon and Flipkart etc.
vi. The Company Operates in the following segments:
1. Manufacturing of LED Television (at our own manufacturing facility)
2. Manufacturing of Fan, Air Cooler, Mixer Grinder, and Washing Machine (through third parties)
i. Strong team with experience and expertise
ii. Organizational stability
iii. Smooth flow of operations & Strong customer relationship
Objects of the Arham Technologies Limited IPO:
Arham Technologies Limited IPO Details:
|Open Date:||Dec 05 2022|
|Close Date:||Dec 07 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Size:||9.58 Cr.|
|Lot Size:||3000 Shares|
|Issue Price:||₹ 42 Per Equity Share|
|Retail Discount:||Fixed Price Issue|
|Listing At:||NSE Emerge|
Promoters And Management:
Financials of Arham Technologies Limited IPO:
|Particulars (in crores)||31.03.2022||31.03.2021||31.03.2020|
|Revenue from operations||36||22||13|
|Cost of Materials Consumed||31||22||11|
|Changes in Inventories of Finished Goods||-1||-5||0.2|
|Employee Benifit Expense||0.7||0.4||0.3|
|Profit (Loss) before tax||4||2||0.5|
|Profit (Loss) for the period||3||2||0.5|
Comparison With Peers:
Recommendation on Arham Technologies Limited IPO:
Review and Recommendation of Arham Technologies Limited IPO is 5/10
1. The company is engaged in the manufacturing of LED Smart Televisions, with different screen sizes under the brand ‘STARSHINE. Under the OEM model, they manufacture and supply products as per the requirements of the customers, who then further distribute these products under their own brands. 2. They also manufacture Fans, Air Coolers and Mixer Grinders through third party manufacturers under the brand ‘STARSHINE. 3. They have a network of dealers and distributors across Chhattisgarh, Madhya Pradesh, Odisha, Vidarbha, Andhra Pradesh and parts of Uttar Pradesh. 4. Revenue in Fy20 was 14 Crores which has increased to 36 Crores in Fy22. 72% sales comes from selling LED TV manufactured by company. Operating margins in the business are 12.50% in Fy22. 5. PAT has increased from 56 Lacs in Fy20 to 3 Crores in Fy22. 6. Asking P/E is 11.86 per share, which looks reasonable. 7. M.cap = ~36 Crores on sales of 36 Crores. So, M.cap/Sales is 1 (reasonably priced)