i. Pallav Kishorbhai Doshi, aged 34 years, is the Chairman of the Board, Managing Director and Promoter of the Company. He holds bachelor’s degree in engineering in electronic engineering with nano technology from University of York. He has experience of more than a decade in the specialised plastics industry. He has been associated with the Company since 2011 and heads the production and the product development departments ii. Kruti Rajeshbhai Doshi, aged 34 years, is an Executive Director of the Company. She holds bachelor’s degree in arts (interior design) from Saurashtra University. She has experience of more than a decade in the home improvement and home furnishing industry and heads the Quality Division of the Company iii. Karishma Rajesh Doshi, aged 31 years, is an Executive Director and one of the Promoters of the Company. She holds bachelor’s degree in design from National Institute of Fashion Technology. She has three years of experience in home improvement and home furnishing industry and heads the human resource department of the Company.

A. Balance Sheet

Particular (In Lakhs)	Mar-21	Mar-22	Mar-23
Equity Share Capital	100	1,600	1,600
Reserves	6,608	5,625	6,962
Borrowings	1,541	2,583	657
Trade Payables	1,268	1,255	1,036
Other Liabilities	923	796	715
Total Liabilities	3,732	4,635	2,409
Net Block	4,090	4,438	4,345
Capital Work in Progress	0	22	41
Investments	3	3	3
Other Assets	122	119	119
Total NC Assets	4,215	4,582	4,509
Receivables	1,424	1,440	1,690
Inventory	1,606	3,212	3,013
Cash & Bank	1,057	406	535
Other Assets	2,138	2,220	1,224
Face value	10	10	10

B. Profit & Loss Statement

Particular (In Lakhs)	Mar-21	Mar-22	Mar-23
Sales	9,578	11,744	11,861
Raw Material Cost	5,883	8,556	8,226
Purchases of Stock In Trade	5	0.23	0
Change in Inventory	-231	-594	-881
Employee Cost	966	1,308	1,273
Other Expenses	1,096	1,221	1,363
Other Income	103	114	187
EBITDA	1,961	1,366	2,068
Depreciation	625	395	374
Interest	101	284	262
Profit before tax	1,236	687	1,432
Tax	322	170	95
Net profit	914	517	1,337

C. Cash Flow Statement

Particular (In Lakhs)	Mar-21	Mar-22	Mar-23
Cash From Operating Activity
Profit From Operation	1,933	1,273	1,903
Receivable	-664	-28	-136
Inventory	-715	-1,605	199
Payable	1,001	80	-251
Other WC Items	-307	-184	1,137
Working Capital Changes	-684	-1,737	950
Direct Taxes	397	226	326
Net Cash Inflow from Operating Activity	852	-690	2,527
Cash from Investing Activity
Fixed assets purchased	-843	-738	-349
Fixed assets sold	1	8	117
Investment received	-758	450	-99
Other investing items	10	12	22
Net cash inflow from investing activities	-1,590	-268	-309
Cash from Financing Activity
Proceeds from borrowings	1,098	1,042	0
Repayment of borrowings	0	0	1,926
Intrest paid fin	-101	-284	-262
Dividends paid	-200	0	0
Net Cash Flow	60	-201	31

 

Name of the Company	Revenue (In Crore)	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
Essen Speciality Films Limited	119	13.3	6.46	16.6	107	221
Shaily Engineering Plastics Limited	600	30	32.69	49.3	1620	1480
Supreme Industries Limited	9,202	865	68.12	43.8	2,981	37,835

* All the data is as per FY23.

Review and Recommendation of Essen SME IPO by IZ team is 5/10

1. Company Overview

a) Essen Speciality Films is a manufacturer and exporter of specialized plastic products in the home improvement and home furnishing industry. b) They supply their products to renowned multinational modern trade retailers such as IKEA, Walmart, Kmart, Bed Bath & Beyond, Rusta, Runsven, Kohl's, Kroger, among others. c) The company has been recognized as a 'two star export house' by the Ministry of Commerce & Industry, Government of India. d) They have been an exclusive global supplier of certain products to IKEA since their incorporation.

2. Product Portfolio

a) The company's product portfolio can be broadly classified into seven categories: bath area, kitchen & dining, home decor, storage and organization, fitness and lifestyle, outdoor and utility, and customized products. b) Their products include plastic films, spa slippers, baby shower caps, greenhouse gutter sheets, shower curtains (branded as 'Draperi'), shelf liners (branded as 'Runner'), and artificial plants and placemats (branded as 'Paperi'). 3. Customer Base a) Due to the multipurpose nature of their products, Essen Speciality Films has a diversified customer base across various industries. b) Their customers include home furnishing and home decor retailers, departmental stores, discount retailers, hypermarkets, hardware and home improvement stores, office supplies stores, agricultural and medical industries, international importers, and wholesale distributors. 4. Global Presence a) The company exports its products to 24 countries, including China, Saudi Arabia, the United States of America, Qatar, the United Kingdom, Germany, Italy, Canada, Romania, Denmark, Poland, New Zealand, the United Arab Emirates, Spain, Austria, France, Australia, Kuwait, Belgium, Sweden, and Mexico. 5. Decent Revenue Growth The company's sales revenue in March 2021 was 95 Cr. In March 2022, the revenue significantly increased to 111 Cr lakhs, reflecting a substantial growth. Continuing this positive trend, the revenue for March 2023 further increased to 118 Cr, indicating a steady growth in the company's sales. 6. Healthy EBITDA Margins In the fiscal year 2023, the company achieved an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of 20 crore with sales amounting to 120 crore . This indicates that the company's EBITDA margin stands at approximately 16%. These margins are considered to be decent, reflecting a healthy profitability level for the company. 7. Valuation The IPO is priced at P/E of 16.46x and Mcap of 220 Cr. The valuation looks decently priced. 

Essen Speciality Films Limited Plot No. A, Survey No. 192, Veraval (Shapar), Rajkot – 360 024 Phone: +91 98253 12701 Email: info@essenspeciality.com Website: https://www.essenspeciality.com/index.html