Baheti Recycling Industries Limited IPO
i) Incorporated in 1994, it is an aluminium recycling Company, primarily engaged in processing aluminium based metal scrap to manufacture (a) aluminium alloys in the form of ingots and (b) aluminium de-ox alloys in the form of cubes, ingots, shots and notch bar.
ii) Aluminium alloys are used in automobile components due to its stiffness, corrosion resistance and excellent strength to weight ratio. The Aluminium de-ox alloys are used as deoxidizer in steel manufacturing units.
iii) Currently, Company markets their products to around 11 states & Union Territories in India of which majority of the revenue comes from the state of Gujarat, Maharashtra, Orissa and Jharkhand. It also sells Its products to the foreign buyers located in Japan, Canada, USA, China, Hong Kong, UAE, Taiwan etc.
iv) It is a customer centric company, constantly striving to create value for its customers through products offered and committed deliveries. The Company primarily caters to the automotive parts and steel sector in India.
v) Some of the esteemed customers of the company include ArcelorMittal Nippon Steel India, Tata Steel, Minda Corporation, Sigma Electric, Sunflag Iron & Steel Co. Ltd. etc.
vi) Revenue from exports for F.Y. 2021-22 and F.Y. 2020-21 has been Rs. 2192.32 lacs and Rs. 1619.71 lakhs respectively which constituted 8.83% and 12.71% of the revenue from operations for the respective fiscal.
- In-house manufacturing facility supported by technology driven process.
- Stringent Quality control mechanism ensures standardized product quality.
- Strong and diversified supplier base for sourcing raw materials.
- Experienced Promoters supported by a dedicated management team.
Objects of the Baheti Recycling Industries Limited IPO:
Baheti Recycling Industries Limited IPO Details:
|Open Date:||Nov 28 2022|
|Close Date:||Nov 30 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Size:||12.42 Cr.|
|Lot Size:||3000 Shares|
|Issue Price:||₹ 45 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Dec 08 2022|
Promoters And Management:
Financials of Baheti Recycling Industries Limited IPO:
|Particulars (in Lakhs)||2022||2021||2022|
|Revenue from Operations||24,840||12,748||10,576|
|Cost of Materials Consumed||22,099||11,232||9,035|
|Change in Inventories||49||-264||51|
|Employees benefit expense||852||615||580|
|No. of Shares||103||103||103|
Comparison With Peers:
|Name of the Company||Revenue (Cr)||Profit (Cr)||EPS||P/E||CPM||MCap (Cr)|
|Arfin India Limited||526||9||0.58||34.4||24||381|
|Nupur Recyclers Limited||159||19||8.25||50.3||314||718|
|Baheti Recycling Industries||248||292||2.83||15.90||45||46.65|
Recommendation on Baheti Recycling Industries Limited IPO:
Review and Recommendation of Baheti Recycling SME IPO by IZ team is 5/10
1. Baheti Recycling is an aluminium recycling Company, primarily engaged in processing aluminium based metal scrap to manufacture (i) aluminium alloys in the form of ingots and (ii) aluminium de-ox alloys in the form of cubes, ingots, shots and notch bar. 2. They supply these recycle products to domestic clients in Automative and Steel Sector like ArcelorMittal Nippon Steel India, Tata Steel, Minda Corporation, Sigma Electric, Sunflag Iron & Steel Co. Ltd and export to countries like Japan, Canada, USA, China, Hong Kong, UAE, Taiwan. 3. They also engaged in trading of scrap materials such as aluminium scrap, brass scrap, copper scrap, zinc scrap etc. 4. They carry out manufacturing operations through the production facility located at Dehgam (Gandhinagar, Gujarat) which has an installed capacity of 12,000 MT for processing aluminium scrap. 5. Revenue from operation increased from 105 Crores in Fy20 to 250 Crores in Fy22. 6. PAT has increased from 19 lacs in Fy20 to 291 Lacs in Fy22. 7. It is a very low margin business. EBITDA Margins in Fy22 is just 3%. 8. Short term debt is ~45 Crores. It is mainly taken to fund 38 Crores of Trade receivables and 30 Crores of Inventory. The working capital requirement is high in the company. 9. EPS of Fy22 is 2.83 and Price of IPO is 45. So, P/E is 16x.