G M Poly BSE SME IPO

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(i) They started the operations in the year 2003 in the name of G. M. Polyplast Private Limited. They are engaged in the business of manufacturing of H.I.P.S, A.B.S & P.E.T sheets, along with sheets they also manufacture the raw material used to manufacture the sheets called granules.

(ii) The Company is known in the industry for manufacturing and supplying of high-grade Sheets and Granules in India.

(iii) The product range includes Acrylonitrile Butadiene Styrene (ABS) Plastic Sheets, High Impact Polystyrene (HIPS) Sheets, PET (Polyethylene Terephthalate) Sheets / Rolls, Amorphous Polyethylene Terephthalate (A-PET) Sheet, Recycled Polyethylene Terephthalate (R-PET) Sheet, HDPE (High-Density Polyethylene) Sheets / Rolls, PP (Polypoplyne) Sheets / Rolls, Electrostatic discharge materials (ESD materials).

Products

1. Granules


2. ABS Sheets

3. HIPS Sheets

Manufacturing Unit

They have a manufacturing unit located at Dadra & Nagar Haveli having a total area of approximately 50,000 sq. ft.

How they sell their Products?

a) They sell products through distributors and retailers.
b) They provide product samples along with catalog to distributors for reaching out to the wholesale and retail shops in the domestic market.
c) The distribution channel currently covers states of Maharashtra, Gujrat, Kerala, Tamil Nadu, West Bengal, Dadra & Nagar Haveli, Puducherry, Uttar Pradesh, Delhi, Madhya Pradesh, Haryana, Telangana, Karnataka, Uttar Pradesh, Goa, Karnataka, Chhattisgarh, and they also supply to other countries such as UAE, Israel, Jordan, and Hong Kong.

Objects of the G M Poly BSE SME IPO:

It is a mix of new shares and OFS. Fresh Issue: The company is issuing 322,800 Equity Shares and will raise 5.03 Crores for the following items. a) To meet the working capital requirements of the company. b) To meet general corporate purposes OFS: The existing investors are selling 186,000 Equity Shares in the IPO.

G M Poly BSE SME IPO Details:

Open Date: Sep 30 2020
Close Date: Oct 06 2020
Total Shares: 508,800
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 8.09 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 159 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 14 2020

Promoters And Management:

The Company is being promoted by Mr. Dinesh Balbirsingh Sharma and Ms. Sarita Dinesh Sharma. Mr. Dinesh Balbir Singh having experience of more than 20 years who is the guiding force behind all the strategic decisions of the Company.

Financials of G M Poly BSE SME IPO:

Particulars(in Lakh) Mar-18 Mar-19 Mar-20
Revenue 5,546 6,811 6,314
Cost of Material Consumed 5,077 6,073 5,483
Change in Inventory -34 42 28
Employee Cost 78 119 146
Other Expense 224 311 281
EBITDA 201 266 376
OPM 3.62% 3.91% 5.96%
Other Income 4 22 28
Interest Cost 30 36 23
Depreciation 46 58 63
Profit before tax 129 194 318
Tax 37 51 89
Net Profit 92 143 229
NPM 1.7% 2.1% 3.6%
Shares 19.20 19.20 19.20
EPS in Rs 4.8 7.4 11.9
 
Key Parameters
RONW 22% 26% 29%
ROCE 39% 31% 53%
CFO/EBITDA 121% 59% 78%

Comparison With Peers:

Axel Polymers Limited, Supreme Industries Limited, and Astral Poly Technik Limited have shown as a peer but their business model is quite different so a comparison is not easy to make.

Recommendation on G M Poly BSE SME IPO:

Review and Recommendation of InvestorZone are 5/10. 1. The issue is priced reasonable at P/E of 13.3x 2. The company top-line has not shown linear growth in the last 3 years. 3. The company has total debt of 2.5 Crores and D/E of 0.05. 4. The company has excellent ROE and ROCE ratios.

Lead Manager of G M Poly BSE SME IPO:

  1. Gretex Corporate Services Private Limited

Registrar of G M Poly BSE SME IPO:

  1. Bigshare Services Private Limited

Discussion on G M Poly BSE SME IPO: