Esprit Stones Limited IPO

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They specialize in manufacturing Engineered Stones, primarily focusing on engineered quartz and marble surfaces. Their company, promoted by the Aravali and Gattani groups from Udaipur, Rajasthan, was incorporated in 2016 and has rapidly expanded its operations.

Products and Manufacturing

Their main products are:
i. Engineered Quartz Surfaces: Manufactured at their primary facility with a capacity of 72 lakhs sq.ft. per annum.
ii. Engineered Marble Surfaces: Produced through their subsidiary, HSPL, with an annual capacity of 74 lakhs sq.ft.

They also manufacture unsaturated polyester resin through their subsidiary, Addwaya Chemicals, ensuring quality control over this key raw material.

Market Presence

They are a leading player in the Indian Engineered Stones market, with a significant portion of their sales derived from exports. Their products are sold in over 10 countries, including the USA, Canada, and UAE, with the majority of exports going to the USA.

Brand and Expansion

Initially focused on exports, they have launched their premium brand “Haique” to tap into the growing domestic market. They have a distributor network in 15 states and are setting up an experience center in Kishangarh, Rajasthan. Their storage facility and sales office are located in Mumbai, Maharashtra.

In summary, they are committed to enhancing their product portfolio, investing in innovation, and strengthening their market presence both domestically and internationally.

Objects of the Esprit Stones Limited IPO:

The net proceeds of the Issue, i.e. gross proceeds of the Issue less the issue expenses to the extent applicable to the Issue ("Net Proceeds") are proposed to be utilised for the following objects: i. Funding Working Capital requirement of the Company ii. Investment in the Subsidiary, Haique Stones Private Limited (HSPL), for repayment and / or prepayment in part or full of its outstanding borrowings iii. Investment in the Subsidiary, Haique Stones Private Limited (HSPL) for funding its Working Capital Requirement iv. General Corporate Purpose
DRHP of Esprit Stones Limited IPO
RHP of Esprit Stones Limited IPO

Esprit Stones Limited IPO Details:

Open Date: Jul 26 2024
Close Date: Jul 30 2024
Total Shares: 5,795,200
Face Value: ₹ 10 Per Equity Share
Issue Size: 50.42 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 82 - 87 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 02 2024

Promoters And Management:

Sunilkumar Lunawath, the Managing Director and a Promoter of the company, has been associated with them since October 19, 2016. With over 25 years of experience in natural stones, mining, minerals, engineered stones, and commercial leasing, he is also a director at Rajasthan Packaging Co Private Limited since 1997. His other ventures include Aravali Minerals and Chemical Industries Private Limited, Rose Marbles Private Limited, Aravali Quartz, Fab Stone, and Esprit Ventures Private Limited. Nitin Gattani, the Joint-Managing Director and a Promoter of the company, has been associated with them since October 19, 2016. With over 25 years of experience in trading and distribution of industrial products, natural stones, engineering stones, contract mining, commercial leasing, and hospitality, he has been a director at Shreya Petrochem Private Limited since 1998. His other ventures include KK Enterprises, Fab Stone, Esprit Ventures Private Limited, and AGG Hospitality LLP. Pradeepkumar Lunawath, the Executive Director and a Promoter of the company, has been associated with them since October 19, 2016. With over 21 years of experience in mining, minerals, natural stones, engineered stones, commercial leasing, and hospitality, he has been a director at Rose Marbles Private Limited since 2003. His other ventures include Aravali Minerals and Chemical Industries Private Limited, Rajasthan Packing Co. Private Limited, and Mahaveer Trading Company.

Financials of Esprit Stones Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 18,646 17,441 27,289
Other Income 357 165 189
Total Revenue 19,003 17,607 27,478
Cost of materials consumed 10,909 10,635 16,007
Purchase of Stock in Trade 364 722 1,332
Change in inventories -1,290 -1,513 -725
Employees Benefit Expenses 1,354 1,585 1,817
Other Expenses 4,348 4,279 5,727
EBITDA 3,318 1,899 3,320
OPM (%) 17.46% 10.78% 12.08%
Depreciation & Amortisation 625 733 913
EBIT 2,693 1,165 2,407
Finance Cost 325 634 997
PBT 2367 531 1,410
Tax -517 -176 -378
PAT 1851 356 1032
NPM (%) 9.74% 2.02% 3.75%
No.of Shares 219.45 219.45 219.45
EPS 8.43 1.62 4.70

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Esprit Stones Limited 273 10 4.70 18.5 87 191
Pokarna Limited 688 87 28.18 24.4 720 2,233
Pacific Industries Limited 190 12 17.24 16.4 283 195
Global Surfaces Limited 225 20 4.41 49.5 218 926
Elegant Marbles & Grani Industries Limited 34 4 11.07 20.3 268 98
* All the data is as per FY24.

Recommendation on Esprit Stones Limited IPO:

Review and Recommendation of Esprit Stones by team IZ is 3/10. 1. Esprit Stones Limited is a leading manufacturer of engineered stones in India, specializing in engineered quartz surfaces and engineered marble surfaces. 2. Products i. Engineered Quartz Surfaces ii. Engineered Marble Surfaces Engineered stones are composite materials made from crushed stone and adhesives, offering non-porous characteristics that enhance their durability and aesthetic appeal compared to natural stones and other manufactured surfaces. Their innovative design and manufacturing processes allow them to offer a wide range of colors, styles, designs, and textures. 3. Market Presence and Distribution They have a robust market presence both domestically and internationally. They export to over 10 countries, including the USA, Canada, Egypt, Bulgaria, UAE, and Saudi Arabia, with a significant portion of their sales being export-driven. To capitalize on the growing domestic demand, they launched their premium brand 'Haique,' now known as "Haique." They have extended their reach to 15 states in India through a network of distributors. 4. Competition The engineered stone industry is highly competitive due to low entry barriers, easy availability of raw materials, and limited initial capital investment, leading to the presence of numerous regional and unorganized players. 5. The Revenue has Increased from Rs.186 Crores in FY22 to Rs.272 Crores in FY24. 6. The EBITDA has Increased from 33.18 Crores in FY22 to 33.2 Crores in FY24. 7. The PAT has Decreased from 18 Crores in FY22 to 10 Crores in FY24. 8. As per FY24, CFO/EBITDA is 1.03, and EPS is 4.70, 9. Market Capitalization is 191 Crores and P/E is 18.5x based on FY24.

Lead Manager of Esprit Stones Limited IPO:

  1. Choice Capital Advisors Private Limited
  2. SRUJAN ALPHA CAPITAL ADVISORS LLP

Registrar of Esprit Stones Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Esprit Stones Limited SP1, Udyog Vihar, Sukher Industrial Area, Udaipur- 313 004, Phone: +91 91166 52582 Email: legal@espritstones.com Website: https://espritstones.com/

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