Dhyaani Tile And Marblez Limited IPO

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i. Dhyaani Tile is engaged in the business of trading of vitrified tiles used primarily for flooring solutions. They commenced this business in year 2019, upon takeover of the business from the earlier promoters. Earlier to this the company was engaged in the business of trading of agro commodities.

ii. The business operations are broadly divided into two product categories:

  • Double Charge Vitrified Tiles: Double charge vitrified tiles are tiles that are fed through a press which prints the pattern with a double layer of pigment, 3 to 4 mm thicker than other types of tiles. This process does not permit complex patterns but results in a long-wearing tile surface, suitable for heavy traffic commercial projects.
  • Glazed Vitrified Tiles: Glazed vitrified tiles are flat slabs manufactured from ceramic materials such as clay, feldspar and quartz and other additives and fired at high temperatures to ensure high strength and low water absorption. These tiles are coated with glaze materials prior to the firing process.

Competitive Strengths:

  1. Widespread distribution network.
  2. Experienced management and dedicated employee base.
  3. Quality assurance.
  4. Strategically beneficial location.

Objects of the Dhyaani Tile And Marblez Limited IPO:

The Company proposes to utilize the funds which are being raised through this Issue (“Net Proceeds”) towards the following objects: a) Funding the working capital requirements of the company b) General Corporate Purposes
DRHP of Dhyaani Tile And Marblez Limited IPO
RHP of Dhyaani Tile And Marblez Limited IPO

Dhyaani Tile And Marblez Limited IPO Details:

Open Date: Mar 30 2022
Close Date: Apr 04 2022
Total Shares: 480,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 2.45 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: BSE SME
Listing Date: Apr 12 2022

Promoters And Management:

i. Mr. Chintan Nayan Bhai Rajyaguru, aged 30 years is the Managing Director of the company. He has experience of 4 years in trading business. He is an under Graduate. He is associated with thecompany since May 24, 2021. He started his carrier as entrepreneur and acquired this company. He is responsible for the most prominent role i.e. leadership role over the procurement and sales, overseeing all activities of the department and identifying the business’s developmental needs ensuring that there is consistency with core competencies and goals and the performance of the company which is generally dictated by the board’s overall strategy. ii. Mr. Nayankumar Labhshankar Rajyaguru, aged 60 years, is Executive Director of the company. He has experience of close to 10 years in accounting. He is a Commerce Graduate from Kankia Arts and Sanghavi Commerce Collage affiliated with Saurashtra University. He is associated with the company since December 31, 2020. He look after the financial aspects of the business. iii. Mrs. Ilaben Nayanbhai Rajyaguru, aged 50 years is Non-Executive Director of the company. She has completed studies till second year graduation in commerce from N.C. Bodiwala Collage of Commerce affiliated with Gujarat University. She is associated with the company since July 15, 2021.

Financials of Dhyaani Tile And Marblez Limited IPO:

Particulars (in Lakhs) Sep-21 Mar-21 Mar-20 Mar-19
Sales 1,041 1,458 713 936
Purchases of Stock-In-Trade 1,035 1,432 718 936
Changes in Inventories -45 19 -0.03 -19
Employee Benefits Expense 13 18 2 3
Other Expenses 7 6 2 2
Operating Profit 31 -17 -9 14
OPM % 2.98% -1.17% -1.26% 1.50%
Other Income 0.03 54 0 0
Interest 0.29 0.29 0.32 0.27
Depreciation 0 0 0 0
Profit before tax 31 37 -10 14
Total Tax Exps 7 10 -3 3
Net Profit 24 27 -7 10
NPM % 2.31% 1.85% -0.98% 1.07%
No. of shares 15.20 15.20 15.20 15.20
EPS in Rs 1.57 1.77 -0.46 0.65

Comparison With Peers:

Name of the Company Face Value EPS PE RoNW Book Value Sales (In Lakhs) PAT (In Lakhs)
Dhyaani Tile And Marblez Limited 10 36.77 63.47 78.99% 68.26 1,458 27
Kajaria Ceramics Ltd 1 25.7 38.9 17.40% 128 2,78,100 30,800
Somany Ceramics Ltd 2 24.2 23.7 10.90% 164 1,65,000 5,800
Orient Bell Ltd 10 15.9 32.2 2.62% 174 50,200 700

Recommendation on Dhyaani Tile And Marblez Limited IPO:

Review and Recommendation of Dhyaani Tile And Marblez Limited IPO by InvestorZone is 2/10 1. Company has just formed 3 years back by over-taking a business from previous promoters which used to do agro-trading and this company has now started doing marble trading. So, quite early in their business to evaluate. 2. The company has incurred an operational loss in FY19 and FY20 and manage to come in profit in FY21 with strong growth in revenue. However, out of 14 Crores sales in FY21, 6 Crores is receivables. This is very high. 3. Dhyaani Tile IPO has not able to generate cash from operations which is negative for the business. 4. Based on Fy21 numbers, the asking P/E is 30x, which looks over valued.

Lead Manager of Dhyaani Tile And Marblez Limited IPO:

  1. GYR CAPITAL ADVISORS PRIVATE LIMITED

Registrar of Dhyaani Tile And Marblez Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Dhyaani Tile And Marblez Limited 420, Times Square Arcade, Opp. Rambaug, Thaltej-Shilaj Road, Ahmedabad – 380059 Phone: 079-41005865 Email: cs@dhyaaniinc.com Website: https://www.dhyaaniinc.com/

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