Dhariwalcorp Limited IPO

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Dhariwalcorp is engaged in trading a comprehensive range of waxes, industrial chemicals, and petroleum jelly. Their offerings include various types of wax, such as Paraffin Wax, Micro Wax, Slack Wax, Carnauba Wax, Microcrystalline Waxes, and many others, as well as industrial chemicals like Rubber Process Oil, Citric Acid Monohydrate, Refined Glycerin, and Stearic Acid.

Key Products and Services

i. Waxes: Paraffin Wax, Micro Wax, Slack Wax, Carnauba Wax, Microcrystalline Waxes, Semi Refined Paraffin Wax, Yellow Beeswax, Hydrocarbon Wax, Montan Wax, Polyethylene Wax, Vegetable Wax, Residue Wax, Palm Wax, BN Micro Wax, Hydrogenated Palm Wax, Micro Slack Wax, PE Wax, Soya Wax, etc.
ii. Industrial Chemicals: Rubber Process Oil, Light Liquid Paraffin (LLP), Citric Acid Monohydrate, Refined Glycerin, Bitumen, Stearic Acid, Petroleum Jelly (Paraffin and White Petroleum Jelly).

Industry and Market Reach

They serve various industries, including Plywood and Board, Paper Coating, Crayon Manufacturing, Candle Production, Textiles, Pharmaceuticals, Cosmetics, Tire Manufacturing, Match Production, Food Processing, and Adhesive Manufacturing. Their products are sold domestically across 21 states and 3 union territories, and internationally, including an export division to Nepal.

Supply Chain and Procurement

They source their products both domestically and internationally from countries like China, Egypt, Singapore, UAE, UK, and Hong Kong. Their efficient supply chain reduces lead times and inventory costs, enhancing overall responsiveness to market changes.

With a strong foundation and strategic vision, Dhariwalcorp is poised for continued growth and success in the competitive market of waxes, industrial chemicals, and petroleum jelly.

Objects of the Dhariwalcorp Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding Capital Expenditure towards construction of Warehouse ii. Funding working capital requirements of the company; iii. General corporate purposes
DRHP of Dhariwalcorp Limited IPO
RHP of Dhariwalcorp Limited IPO

Dhariwalcorp Limited IPO Details:

Open Date: Aug 01 2024
Close Date: Aug 05 2024
Total Shares: 2,372,400
Face Value: ₹ 10 Per Equity Share
Issue Size: 25.15 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 102 - 106 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 08 2024

Promoters And Management:

Mr. Manish Dhariwal, aged 42, is the Promoter, Chairman, and Managing Director of the Company. He holds a Bachelor of Commerce from Jai Narain Vyas University, Jodhpur. With over 17 years of experience in the wax industry and more than 3 years with the company, he is responsible for crafting and implementing the company's overall strategy, managing operations, and driving innovation through product development and market expansion both in India and abroad. Ms. Shakshi Dhariwal, aged 41 years, is the Promoter and Whole Time Director of the Company. She has completed her Masters of Commerce from Jai Narain Vyas University, Jodhpur in the year 2005. In the wax industry she has over 16 years of experience in Dhariwal Corporation and more than 3 years of experience in the same company. Her proficiency in sales management and administration has been instrumental in driving the firm towards success. Mr. Dilip Dhariwal, aged 35 years, is the Executive Director of the Company. He holds a Master Degree in Master of Business Administration from Jain Narain Vyas University, Jodhpur, in the year 2013. He has an experience of around 9 years majorly in international trading business of Dhariwal Marketing.

Financials of Dhariwalcorp Limited IPO:

Particular (In lakh) Mar-22 Mar-23 Mar-24
Revenue from Operations 15,858 19,393 22,880
Manufacturing Cost 15222 19464 22261
Change in Inventories 121 -309 -40
Employee Cost 131 66 64
Other Expenses 207 141 157
EBITDA 177 31 438
EBIDTA Margin 1.12% 0.16% 1.91%
Other income 62 127 231
Depreciation 8 10 9
Interest 42 62 57
Profit before tax 188 85 603
Tax 45 25 152
Net profit 143 60 451
NPM (%) 0.90% 0.31% 1.95%
EPS 1.59 0.67 5.03

Comparison With Peers:

There are no listed companies in India and abroad engaged in similar business.

Recommendation on Dhariwalcorp Limited IPO:

1. Dhariwalcorp is a diversified trading company specializing in a comprehensive range of waxes, industrial chemicals, and petroleum jelly. The company's operations encompass processing, purchasing, selling, importing, and trading various types of wax and industrial chemicals, serving a wide array of industries both domestically and internationally. 2. Product Portfolio Dhariwalcorp offers an extensive range of products, including: i. Waxes: - Paraffin Wax                       - Micro Wax                              - Slack Wax                  - Carnauba Wax - Microcrystalline Waxes    - Semi Refined Paraffin Wax   - Yellow Beeswax       - Montan Wax - Hydrocarbon Wax              - Polyethylene Wax                 - Vegetable Wax          - Residue Wax - Palm Wax                            - Hydrogenated Palm Wax    - BN Micro Wax          - Micro Slack Wax - PE Wax                                - Soya Wax ii. Industrial Chemicals: - Rubber Process Oil                 - Light Liquid Paraffin (LLP)               - Citric Acid Monohydrate - Refined Glycerin                      - Bitumen                                               - Stearic Acid iii. Petroleum Jelly: - Paraffin Petroleum Jelly         - White Petroleum Jelly 3. Industry Applications Dhariwalcorp’s products cater to various industries, including: i. Plywood and Board                        ii. Paper Coating                             iii. Crayon Manufacturing iv. Candle Production                        v. Textiles                                         vi. Pharmaceuticals vii. Petroleum Jelly & Cosmetics    viii. Tube & Tire Manufacturing     ix. Match Production x. Food Processing                            xi. Adhesive Manufacturing 4. Market Presence Dhariwalcorp has a robust domestic presence across 21 states and 3 Union Territories in India and has initiated an export division, currently supplying to Nepal. 5. Procurement and Supply Chain Dhariwalcorp procures its products from both domestic and international markets, including China, Egypt, Singapore, UAE, UK, and Hong Kong. The company’s extensive domestic market spans across numerous Indian states, ensuring a wide-reaching supply chain network. 6. Competitive Landscape Dhariwalcorp operates in a competitive environment with both organized and unorganized players. The company’s competitive advantages include its comprehensive product portfolio, strong client relationships, efficient supply chain, and reputation for reliability and quality. 7. The Revenue has Increased from Rs.158 Crores in FY22 to Rs.228 Crores in FY24. 8. The EBITDA has Increased from 1.7 Crores in FY22 to 4 Crores in FY24. 9. The PAT has Increased from 1 Crores in FY22 to 4 Crores in FY24. 10. As per FY24, CFO/EBITDA is 1.50, and EPS is 5.03, 11. Market Capitalization is 95 Crores and P/E is 21.05x based on FY24.

Lead Manager of Dhariwalcorp Limited IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Dhariwalcorp Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Dhariwalcorp Limited 36, Narayan Nagar, Shobhawaton ki dhani Pal Link Road Jodhpur – 342001 Phone: 70141 31630 Email: investor@dhariwalcorporation.com Website: http://www.dhariwalcorporati/

Discussion on Dhariwalcorp Limited IPO:

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