Gandhar Oil Refinery India Ltd IPO

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Gandhar Oil is a leading manufacturer of white oils by revenue with a growing focus on the consumer and healthcare end-industries (Source: CRISIL Report). As of June 30, 2022, our product suite comprised over 350 products primarily across the personal care, healthcare and performance oils (“PHPO”), lubricants and process and insulating oils (“PIO”) divisions under the “Divyol” brand. Our products are used as ingredients by leading Indian and global companies for the manufacture of end products for the consumer, healthcare, automotive, industrial, power and tyre and rubber sectors.
They have completed rigorous selection processes for securing business from several of our customers and have been able to maintain high customer loyalty. Our customer engagement, relationships and the quality and other certifications awarded to our manufacturing facilities demonstrate the quality of our products and our capabilities.
Their relationships with our customers have contributed to our growth and performance in the last three Financial Years and according to the CRISIL Report, such long-term relationships with customers are one of the barriers to entry in our industry

Competitive Strengths –

(i) Leading market share of the Indian white oils market with significant overseas sales, focused on the consumer and healthcare end-industries
(ii) Extensive and diversified customer base and a supplier base comprised of leading oil companies with competitive pricing terms
(iii) Strategically located manufacturing facilities and in-house R&D capabilities
(iv) Resilient, flexible and scalable business model with prudent risk management framework
(v) Track record of consistent financial performance
(v) Experienced and qualified management team

Objects of the Gandhar Oil Refinery India Ltd IPO:

a) Offer for sale b) Fresh Issue The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects: 1. Investment in Texol by way of a loan for financing the repayment/pre-payment of a loan facility availed by Texol from the Bank of Baroda 2. Capital expenditure through purchase of equipment and civil work required for (i) expansion in capacity of automotive oil at our Silvassa Plant (ii) expansion in capacity of petroleum jelly and accompanying cosmetic product division at our Taloja Plant (iii) expansion in capacity of white oils by installing blending tanks at our Taloja Plant 3. Funding working capital requirements of our Company 4. General corporate purposes.  
DRHP of Gandhar Oil Refinery India Ltd IPO

Gandhar Oil Refinery India Ltd IPO Details:

Face Value: ₹ 2 Per Equity Share

Promoters And Management:

Mr. Ramesh Babulal Parekh is the Promoter, Chairperson and Managing Director of the Company. He holds a bachelor’s degree in commerce from the University of Mumbai. He has been with the Company since its incorporation and has over 30 years of experience in the petroleum and specialty oils industry. He looks after the overall management and organisation of Company and also monitors the overall performance of Company. He also serves as a director on the board of Manufacturers of Petroleum Specialities Association. Additionally, he is also a director on the board of directors of other companies including Gandhar Shipping and Logistics Private Limited and Texol Lubritech FZC. Mr. Samir Ramesh Parekh is the Promoter, Vice Chairperson and Joint Managing Director of Company. He holds a bachelor’s degree in commerce from the University of Mumbai. He has over 19 years of experience in manufacturing and marketing of petroleum and specialty oils industry. He first joined the Company as a sales executive officer in 2003. He is responsible for managing the operations of the company's Silvassa manufacturing facility. Mr. Aslesh Ramesh Parekh is the Promoter and Joint Managing Director of Company. He holds a bachelor’s degree in science from the University of Mumbai and a post-graduate certificate in e-management and business administration from the MET Asian Management Development Centre. He has over 19 years of experience in the petroleum and specialty oils industry.

Financials of Gandhar Oil Refinery India Ltd IPO:

(Fig. in Crores)
Year Revenue EBITDA OPM PAT NPM Shares F.V.  EPS NW RONW
2017 2256 126 6% 62.10 3% 1.6 10 38 321 19%
2018 2760 143 5% 64.44 2% 1.6 10 40 381 17%
2019 3594 97 3% 18.73 1% 1.6 10 12 384 5%
2020 2516 75 3% 11.7 0.4% 1.6 10 8 390 3%
2021 2236 142 6% 74 3% 1.6 10 46 463 16%
2022 3578 270 7.54% 164 4.5% 8 2 21 578 28%
DRHP Of Gandhar Oil Refinery (India) Annual Report 2022 Annual Report 2021 Annual Report 2020 Annual Report 2019  

Comparison With Peers:

 
Name of the Company Revenue (Cr) EPS P/E CMP Mcap (Cr) Profit (Cr)
Gandhar Oil Refinery India Limited 3389 20.99 N/A N/A N/A 184
Savita Oil Technologies Limited 2938 37.62 8.25 297 2,090 260
Apar Industries Limited 9319 67.09 25.71 1703 6,322 256
Panama Petrochem Limited 2132 38.08 9.49 346 2,125 230
Galaxy Surfactants Limited 3685 74.12 35.37 2366 8,442 262
Privi Speciality Chemicals Limited 1403 24.93 47.21 1098 4,391 97
Rossari Biotech Limited 1482 17.81 42.00 721 3,976 97
Fairchem Organics Limited 643 52.15 25.35 1208 1,583 67

Recommendation on Gandhar Oil Refinery India Ltd IPO:

to be updated when RHP of Gandhar Oil will be filed
 

Discussion on Gandhar Oil Refinery India Ltd IPO:

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