Energy-Mission Machineries (India) Limited IPO

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The business specializes in designing and manufacturing an extensive range of CNC, NC, and conventional metal forming machines, providing comprehensive solutions for metal fabrication needs. Established in 2011, the company offers over 600 variants of machines such as press brakes, shearing machines, plate rolling machines, and more, tailored for industries like automotive, steel fabrication, furniture, and food processing, among others.

From April 2023 to August 2023, they have supplied 1,487 machines to over 1,050 customers globally, including markets like the USA, Switzerland, Russia, and various Middle Eastern countries. Their products not only include the primary machines but also essential tools and spare parts like Die punches and Shearing Blades, supporting robust after-sales service facilitated by a dedicated team.

In Fiscal Year 2023, they sales included 500 machines to over 400 clients, highlighting their capability to meet diverse industry needs. A notable achievement includes selling a hydraulic shearing machine to CERN in Geneva. Their operations are anchored in a vast manufacturing facility in Sanand, Ahmedabad, equipped with state-of-the-art technology and an ISO 9001:2015 certification, showcasing their commitment to quality and innovation.

The strength of their company also lies in their design and development team, which uses advanced software like Cadmate and SolidEdge to innovate and customize products, ensuring alignment with client specifications and industry demands.

Objects of the Energy-Mission Machineries (India) Limited IPO:

The company intend to utilize the proceeds of the net issue to meet the following objects: i. Funding of capital expenditure towards civil construction work at existing manufacturing unit located at Sanand, District Ahmedabad, Gujarat ii. Funding of capital expenditure towards installation of new plant & machineries iii. To meet working capital requirements iv. General Corporate Purpose
DRHP of Energy-Mission Machineries (India) Limited IPO
RHP of Energy-Mission Machineries (India) Limited IPO

Energy-Mission Machineries (India) Limited IPO Details:

Open Date: May 09 2024
Close Date: May 13 2024
Total Shares: 2,982,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 41.15 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 131 - 138 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 16 2024

Promoters And Management:

Satishkumar Kanjibhai Parmar is the Chairman, Executive Director & CFO of the Company. He has been on the Board since 2011. He is a visionary entrepreneur and has played a pivotal role in expanding business operations of the Company. He has a work experience of around 30 years in the production of capital machineries and has completed his Diploma in Production Technology from Board of Technical Examination, Govt. of Maharashtra in 1994. He currently looks after the overall administration and finance operations of the Company. Under his guidance, the Company has witnessed continuous growth. Dineshkumar Shankarlal Chaudhary is the Managing Director of the Company. He has been on the Board since 2011. He has completed his B.E. Mechanical in 1994 from North Gujarat University, Patan, Gujarat. He has an experience of around 28 years in the production of capital machineries. He is currently looking after the production and marketing function of the Company. Ashokkumar Ramjibhai Panchal is the Whole-Time Director of the Company. He has been on the Board since 2011. He has completed his Diploma in Mechanical Engineering in 1990 from Technical Examinations Board, Gandhinagar, Gujarat He has an experience of 30 years in the production of capital machineries He is currently looking after the production and marketing function of the Company.

Financials of Energy-Mission Machineries (India) Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 4,761 7,835 9,956 8,328
Other Income 73 71 110 71
Total Revenue 4,834 7,907 10,066 8,400
Cost of materials consumed 3,166 4,844 6,225 5,052
Change in Inventories -135 97 -397 -623
Employees Benefit Expenses 518 691 924 1,068
Other Expenses 762 1,407 1,843 1,560
EBITDA 523 867 1,470 1,343
Depreciation & Amortisation 174 178 195 149
Finance Cost 251 238 264 225
EBIT 350 689 1,275 1,194
OPM (%) 10.83% 10.97% 14.61% 15.98%
PBT 98 452 1011 969
Tax 3 115 221 294
PAT 95 336 790 675
NPM (%) 1.97% 4.25% 7.85% 8.03%
No.of Shares 113.26 113.26 113.26 113.26
EPS 0.84 2.96 6.97 5.95

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Energy-Mission Machineries (India) Limited 100 8 6.97 19.8 138 156
Macpower CNC Machines Limited 202 13 12.88 71.9 1,310 1,310
Jyoti CNC Automation Limited 929 15 4.57 N/A 828 18,824
* All the data is as per FY23.

Recommendation on Energy-Mission Machineries (India) Limited IPO:

Review and Recommendation of Energy-Mission Machineries (India) by team IZ is 6/10. 1. The company designs and manufactures CNC, NC, and conventional metal forming machines catering to the industrial sector’s need for metal fabrication solutions. Their product portfolio includes press brake machines, shearing machines, plate rolling machines, ironworker machines, hydraulic presses, and busbar bending, cutting, and punching machines. 2. Product Range and Industry Applications: i. Metal Forming Machines: Their extensive product line consists of over 600 variants, including specialized precision equipment for metal cutting and forming operations. ii. Global Reach: Their products have been supplied to over 1,150 customers across India and several countries, including the USA, Switzerland, Russia, and Middle Eastern nations. iii. Industry Use Cases: The machines serve a wide range of industries, such as automotive, agriculture, furniture, HVAC, and metalworking. 3. Sales and Support: i. Sales Team: A team of 29 employees oversees the sales and marketing efforts across India. ii. After-Sales Support: A 22-member after-sales service team ensures maintenance and technical support through spare parts and repair services. 4. Design and Development: i. Design Team: A team of 9 employees oversees product customization and development. ii. Software Tools: Cadmate and SolidEdge are utilized for design optimization. iii. New Launches: The company recently launched four-roll machines at IMTEX 2024 and an automated material handling system that integrates with CNC machines. 5. Competition: i. Competitive Landscape: The metal forming machine industry is highly competitive and fragmented, with competition varying by region. ii. Key Competitors: Prominent rivals include Hindustan Hydraulics, Rajesh Machine Tools, HACO Machinery, and Weldor Engineering. iii. Competitive Advantage: The company competes on quality, technology, cost, delivery, and relationship depth. 6. The Revenue has Increased from Rs.47 Crores in FY21 to Rs.99 Crores in FY23. 7. The EBITDA has Increased from 5 Crores in FY21 to 14 Crores in FY23. 8. The PAT has Increased from 95 Lakhs in FY21 to 8 Crores in FY23. 9. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is 7.94, 10. Market Capitalization is 156 Crore & P/E is 17.37x based on FY24.

Lead Manager of Energy-Mission Machineries (India) Limited IPO:

  1. Hem Securities Limited

Registrar of Energy-Mission Machineries (India) Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Energy-Mission Machineries (India) Limited E-9/3 & E-12 Sanand-II Industrial Area Bol GIDC Sanand Bol, Ahmedabad– 382 170 Phone: +91-7984768296 Email: cfo@energymission.com Website: https://www.energymission.com/

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