Emmforce Autotech Limited IPO
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The company specializes in manufacturing and exporting niche automotive drivetrain parts, such as Differential Housings, Lockers, Covers, 4WD Locking Hubs, Spindles, Axles & Shafts, Gear Shifters, and more, focusing on 4-wheel drive and performance racing vehicles. Renowned as a leading manufacturer in India, they offer a comprehensive range of drivetrain parts, delivering innovative solutions from design to development of specialized parts.
They distinguish themselves through a vast inventory of tooling, machining jigs and fixtures, and an emphasis on engineering, enabling them to develop new parts quicker than competitors. Their approach accelerates performance and profitability for their clients by ensuring faster product development, reduced lead times, on-time delivery, and competitive pricing.
Their engineering solutions encompass the entire product lifecycle from concept to manufacturing, tailored to meet specific customer needs. Their in-house capabilities include forging, machining, fabrication, heat treatment, surface finishing, logistics, quality testing, and design validation.
Their success and market position are attributed to their adherence to the visionary leadership of their promoters and the expertise of their senior management team, which has allowed them to anticipate market changes, expand operations, and deepen customer relationships effectively.
Objects of the Emmforce Autotech Limited IPO:
The company intends to utilize the net proceeds of the Issue to meet the following objectives:
i. Investment in a Subsidiary Company i.e. Emmforce Mobility Solutions Private Limited (EMSPL) in the form of equity or debt for meeting the requirement of working capital and margin money for term loan of the Subsidiary Company.
ii. To Meet the Working Capital Requirements of the company.
iii. General Corporate Purpose.
Emmforce Autotech Limited IPO Details:
| Open Date: | Apr 23 2024 |
| Close Date: | Apr 25 2024 |
| Total Shares: | 5,499,600 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Size: | 53.90 Cr. |
| Lot Size: | 1200 Shares |
| Issue Price: | ₹ 93 - 98 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | Apr 30 2024 |
Promoters And Management:
Mr. Ashok Mehta, 56, serves as Chairman & Managing Director of the company since October 13, 2023, with a tenure of 3 years. A Chartered Accountant and a Bachelor of Commerce graduate, he is a pioneering entrepreneur in the automotive sector, boasting over 32 years of experience, particularly in manufacturing automotive differential and drivetrain parts. Starting his career in 1991 by founding a company focused on Automotive Rear Axle Shafts, he later established Emmforce Inc. in 2012, which evolved into Emmforce Autotech Ltd. in 2023. His leadership has been crucial in steering the company's policy and strategic direction, significantly contributing to its growth and the management of its business affairs.
Mr. Azeez Mehta, aged 26 years is Whole Time Director & Chief Financial Officer of the Company. He was appointed on the Board on October 13, 2023 as Whole Time Director of the Company for a period of 3 years. He holds degree of Bachelor of Science in Industrial Engineering. He has over 4 years of rich industrial experience in automotive components industry. He has profound knowledge of business and motivates the team. He served the company since incorporation as a director and as a leader. He has been appointed as Chief Financial Officer of the Company w.e.f. November 1, 2023.
Mrs. Neetu Mehta, aged 50 years is the Non-Executive Director and Promoter of the Company. She was originally appointed on the Board on October 13, 2013 as Whole Time Director and further reappointed as Non-Executive Director w.e.f. October 16, 2023. She is having experience of 11 years in automotive components industry. She has served the Company since incorporation and provides her valuable guidance to the Company.
Financials of Emmforce Autotech Limited IPO:
Particulars ( In Lakhs ) |
2021 |
2022 |
2023 |
7M-FY24 |
| Revenue from Operations | 5,045 | 6,906 | 4,569 | 4,645 |
| Other Income | 140 | 232 | 306 | 145 |
| Total Revenue | 5,185 | 7,138 | 4,875 | 4,790 |
| Cost of materials consumed | 3,267 | 4,800 | 3,094 | 2,862 |
| Change in Inventories | 193 | -185 | -421 | 201 |
| Employees Benefit Expenses | 276 | 427 | 546 | 381 |
| Other Expenses | 353 | 658 | 544 | 296 |
| EBITDA | 1,097 | 1,437 | 1,112 | 1,051 |
| Depreciation & Amortisation | 119 | 128 | 190 | 110 |
| Finance Cost | 152 | 189 | 244 | 158 |
| EBIT | 977 | 1,309 | 921 | 941 |
| OPM (%) | 21.15% | 20.13% | 22.80% | 21.94% |
| PBT | 826 | 1121 | 678 | 783 |
| Tax | 317 | 388 | 239 | 271 |
| PAT | 509 | 733 | 439 | 512 |
| NPM (%) | 9.81% | 10.26% | 9.00% | 10.68% |
| No.of Shares | 204.99 | 204.99 | 204.99 | 204.99 |
| EPS | 2.48 | 3.57 | 2.14 | 2.49 |
Comparison With Peers:
| Name of the Company | Revenue (In Crore) | PAT (In Crore) | EPS ( in Rs) | P/E | CMP | Mcap (In Crore) |
| Emmforce Autotech Limited | 46 | 4 | 2.14 | 45.8 | 98 | 201 |
| Divgi Torqtransfer Systems Ltd | 271 | 51 | 16.73 | 55.9 | 802 | 2,460 |
Recommendation on Emmforce Autotech Limited IPO:
Review and Recommendation of Emmforce Autotech by team IZ is 5/10.
1. Emmforce Autotech Limited, initially established as a partnership firm named M/s. Emmforce Inc., was co-founded by Mr. Ashok Mehta and Mrs. Neetu Mehta on September 25, 2012, under the Indian Partnership Act, 1932. The company transitioned from a partnership to a public limited company on October 13, 2023, as per the Companies Act, 2013, a shift that underscores their evolving business strategy and commitment to growth.
2. Business Activities
They specialize in manufacturing advanced automotive drivetrain components such as Differential Housings, Lockers, Covers, and various other precision parts primarily for 4-wheel drive and performance racing vehicles. Their commitment to innovation and quality has positioned them as a leader in the drivetrain parts market in India and as a significant player internationally.
3. Innovative Edge and Market Strategy
Their capability in rapid product development is enhanced by their extensive tooling inventory for forging and machining, alongside specialized jigs and fixtures. This allows for reduced lead times and a competitive edge in new product introductions. They prioritize engineering and design to meet niche market demands and maintain a comprehensive product suite that emphasizes performance and reliability.
4. Integrated Engineering Solutions
From concept to implementation, their approach involves thorough market analysis, customer needs assessment, and tailored strategy formulation. The product development lifecycle includes design, material sourcing, and rigorous validation processes to ensure superior product performance and durability. Their in-house capabilities span across forging, machining, fabrication, heat treatment, and quality assurance, ensuring high standards and customer satisfaction.
5. Recent Developments
A notable expansion in their business was the acquisition of a major stake in Emmforce Mobility Solutions Pvt. Ltd. (EMSPL) from Emmbros Automotives Pvt. Ltd. This strategic move not only expands their manufacturing capabilities, particularly in the domain of forgings and Rotary Tiller Blades but also integrates cutting-edge robotic technologies and advanced manufacturing processes into our operations.
6. Competition and Market Position
The automotive component industry is fiercely competitive; however, Emmforce Autotech Limited distinguishes itself through a focus on niche markets like 4WD and performance racing components. Their approach of managing low-volume, high-complexity productions and delivering bespoke solutions allows them to maintain a strong competitive advantage and high customer retention rates.
7. The Revenue has Decreased from Rs.50 Crores in FY21 to Rs.45 Crores in FY23.
8. The EBITDA has Increased from 10 Crores in FY21 to 11 Crores in FY23.
9. The PAT has Decreased from 5 Crores in FY21 to 4 Crores in FY23.
10. As per FY23, CFO/EBITDA is 0.86, As per FY24, EPS is 4.27,
11. Market Capitalization is 201 Crore & P/E is 22.89x based on FY24.
Lead Manager of Emmforce Autotech Limited IPO:
Registrar of Emmforce Autotech Limited IPO:
Company Address:
Emmforce Autotech Limited
Plot No. 287, Industrial Area,
Phase II Industrial Estate,
Panchkula - 134113
Phone: +91- 9876009999
Email: info@emmforce.com
Website: http://www.emmforce.com/
Discussion on Emmforce Autotech Limited IPO:
1 Comment
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EMMForce is mainly providing auto components for 4W Drive and Performance vehicles for which obviously the India has small market .
82% sales comes from North America, 15% from Asia and 6% from India.
But irony is when you read Industry Analysis they have shown Indian Auto Component market size, growth, OEM vs After market, Indian Govt Policies etc.
Instead they should have atleast shown how much growth is there in North American market for 4W Drive and performance vehicle, and how much is the competition etc.