Dhruv Consultancy Services Limited IPO

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Dhruv Consultancy Services Limited IPO

(i) Dhruv Consultancy Services Limited ,was incorporated in 2003 and have over the years developed a track record of working majority of projects with government bodies and public sector undertakings. As of December 31, 2017, we have provided a range of consultancy services on 41 projects in the area of Highways, Bridges, Tunnels, Architectural, Environmental Engineering, and Ports. Being a consultancy organization, we believe that human capital is one of our most valuable assets. We have a qualified and professional employee base of over 313 employees, including 240 Engineers as on December 31, 2017. Our technical and engineering know-how coupled with the experience of our management has helped us to create a niche for our Company. Depending on our business needs, from time to time we also outsource certain of our contracts to the third party services providers.

(ii)  Company services include Preparation of DPR and feasibility studies for infrastructure projects, Operations & Maintenance Works, Project Management Consultancy Services, Independent Consultancy, Project Planning, Designing, Estimation, Traffic and Transportation Engineering, Financial Analysis, Technical audits, Structural Audit, Inspection of bridges and Techno-Legal Services.

(iii) We have provided our services to clientele such as Ministry of Road Transport and Highways, National Highways Authority of India, The City and Industrial Development Corporation of Maharashtra Ltd., Jawaharlal Nehru Port Trust, Maharashtra State Road Development Corporation, Mumbai Metropolitan Region Development Authority, Public Works Department, Maharashtra Tourism etc.

(iv) Quality Policy
Dhruv Consultancy Services Limited provides complete solution of Civil Engineering and Infrastructure works to clients in the public and private sectors with special emphasis on PPP Projects. Quality is an integral part of our commitment to customer services. For its fulfillment we,
• Manage our company with the utmost professionalism
• Update our services with latest technologies
• Maintain the highest degree of professional and personal ethics
• Conduct internal quality audits
• Offer competitive rates and true value for money to our clients.

Dhruv Consultancy Services Limited IPO Stock Quote & Charts

54.00

-2.26%

  • Open: 55.60
  • High - Low: 55.60 - 54.00
  • Previous Close: 55.25
  • Total Traded Volume: 66000
  • Updated On: 21-May-2018

Objects of the Issue:

Objectives of

Dhruv Consultancy Services Limited IPO

are: 1. Repayment/ prepayment of certain indebtedness. 2. To Meet Working Capital requirements. 3. General Corporate Expenses. 4. Issue Expenses.

Listing Date: May 10 2018

Issue Details:

Open Date: Apr 27 2018
Close Date: May 02 2018
Total Shares: 43,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 23.19 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 54 Per Equity Share
Listing At: BSE SME
Listing Date: May 10 2018

Promoters And Management:

Promoters of Dhruv Consultancy Services Limited Company are: (i) Sudhir Apte, aged 63 Years, joined our Company in May, 2008 and was designated as the Vice President of our company in January 2017. He holds a bachelor’s degree in civil engineering from Nagpur University. He has over three decade years of experience in the infrastructure business. Prior to joining our Company, he has been associated with various companies/department including Irrigation Department Akola, Public works department, Maharashtra, National Highway Authority of India, Maharashtra State Road Development Corporation, etc. on various projects and in various capacities. The gross remuneration paid to him during the Fiscal year 2017 was Rs. 8.55 Lakhs. (ii) Snehal L. Patil, aged 37 Years, is the Chief Financial Officer of our Company. He holds a Bachelor’s degree in commerce from the Mumbai University. He has been associated with our Company since January 2007 and appointed as the Chief Financial Officer of our Company with effect from January 11, 2018. Prior to joining our Company, he was associated with Gangeshan Enterprises. He has more than 17 years of experience in accounts, finance and taxation. The gross remuneration paid to him during the Fiscal year 2017 was Rs. 2.38 Lakhs (iii) Isha S. Kulkarni, aged 30 years was appointed as the Company Secretary of our Company on February 01, 2018. She is a member of the Institute of Company Secretaries of India. She has over two years of experience in the field of secretarial laws, due diligence and other compliance.

Capital Structure:

(i) Authorized Share Capital ( 1,50,00,000 shares at FV@10) 15 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (1,00,00,000 Shares at FV@10) 10 Cr
(iii) Present Issue ( 43,00,000 Shares at FV@10) 4.3 Cr
(iv) Reservation for Market Maker (2,25,000 Shares at FV@10) 22.5 Lacs
(v) Net Issue to Public (43,00,000-2,25,000=  40,75,000Shares) 4.075 Cr
(vi) QIB & HNI Quota-20,37,500 50%
(vii) Retail Quota- 20,37,500 50%
(viii) Paid Up Share Capital after the issue 14.3 Cr

Company Financials:

 1. Balance Sheet Snippet[ Financials as of Dec 2017]
       (i) Shareholders’ Fund[Equity] Value 1408.57 Lacs
      (ii) Asset 4229.75 Lacs
      (iii) Liability 2821.18 Lacs
      (iv) Debt/Equity[<1 ideal] 2(reasonable)
      (v) Current Ratio[>1.5 ideal] 1.58
      (v)  Net Worth[Asset- Liability] 1408.57 Lacs
     (vi)  RONW[PAT/Net Worth] or ROE 38%(Excellent)
     (vii) Book Value or NAV[ Net Worth/No.of Shares] 141
     (viii) P/B  [<5 ideal] .38( highly under valued)
2. Profit n Loss Snippet (i) The Reveune of the company in last 5 years ( FY13 to FY17) is growing at a CAGR of 56.33%[ Excellent] (i) The PAT of the company in last 5 years ( FY13 to FY17) is growing at a CAGR of 72.85%[ Excellent] (iii) The EBITDA Margins of the company for FY13( 13%), FY14(20%), FY15(19.88%), FY16(23%) and FY17(25%). In last 5 years the company's EBITDA margins are almost doubled from 13 % to 25% which is excellent. (iv) P/B(post issue)= 2.07 (v) Annualized EPS(post issue)= 5 (vi) Annualized P/E(post issue)=10.8(reasonably priced) at the cutoff price of 54
3. Cash Flow Statement(all figures in lacs)
Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation 162.36 24.15 -192.43 77.78 -107.27
(ii) Net Cash Generated from Investment -310.53 -217.84 -11.29 -50.66 17.72
(iii) Net Cash Generated from Financing Activity 148.79 147.8 153.23 102.2 113.9
(iv) Total[ (i)+(ii)+(iii) ] 0.62 -45.89 -50.49 129.32 24.35
(v) Cash and Cash Equivalents at the Beginning of the Year 134.76 180.66 230.94 101.62 75.64
(vi) Cash and Cash Equivalents at the end of the Year 135.38 134.77 180.45 230.94 99.99
 

Comparison With Peers:

Sr.No Name of the Company FV EPS PE RONW(%)
1 Dhruv Consultancy Services Limited 10 5 10 38%
2 Artefact Projects ltd 10 0.35 135.71 0.54%
3 MITCON Consultancy & Engineering Services Limited 10 3.66 19.81 4.80%

Recommendation:

Review and Recommendation of

Dhruv Consultancy Services Limited IPO

from our side is: The issue is reasonably priced at PE of 10 and company has excellent ROE of 38%. Rating: 7/10. 1-5: Fair 5-7: Good 7-10: Excellent .

Lead Manager:

  1. Hem Securities Limited

Company Address:

501, Pujit Plaza, Palm Beach Road, Sector - 11 CBD Station, CBD Belapur, Navi Mumbai-400614, Maharashtra; Fax: +91 22 27570710; Website: www.dhruvconsultancy.in E-mail: cs@dhruvconsultancy.in

Bid Details as on 02 May 2018 | 11:58:06 PM

Category No.of shares offered No. of shares bid
2,150,000 5,532,000
2,150,000 5,388,000
- -
4,300,000 10,920,000
QIBs Yes
QIBs+HNIs Subscription 2.38X
Retail Subscription 2.51X
Total Subscription 2.54X