Goyal Salt Limited IPO

Apply 0
Avoid 0

i. Goyal Salt is primarily engaged in the business of refining of raw salts procured from sub soil brine in the state of Rajasthan for useable as industrial salts and edible salts. The company refines and supplies pure, refined and quality range of triple refined free flow iodized salt, industrial salt, double fortified salt and triple refined half dry salt. Their refining process does not involve any adulteration from chemical and harmful substances. They have well equipped refinery at Nawa City, adjacent to famous Sambhar Lake. In addition to refinery, they also have lease rights to harvest raw salt over 18.66 Hectare of land issued by Government of Rajasthan in the vicinity of salt producing area of Nawa City in Rajasthan.

ii. The raw material required to process refined salt is raw salt itself. The Company sources its raw material mainly from the open market purchases which is around 75% of the total requirement of raw salt required by us for all our products which are Refined Free Flow Iodized Salt, Refined Free Flow Industrial Salt, Double Fortified Salt and Refined Half Dry Salt. In addition to the open market purchases, they source their raw material from their promoters-controlled entities and own harvesting of raw salts on the salt lands owned by the Company which supply around 23% and 2% respectively of the total requirement of the raw material required by us.

iii. Over the past couple of years, the company has outgrown itself into the production of refined iodised salt and double fortified salt. Edible salt, also called table salt or just salt, is a mineral, commonly consumed by humans. There are different forms of edible salt: unrefined salt, refined salt, table salt or iodised salt. Raw salt comes in fine or larger crystals. In nature, it includes not only sodium chloride, but also other vital trace minerals. The company supplies its refined salt in the packaging of half kg and one kg for home consumption and fifty kg bags and jumbo bags for industrial use.

iv. The Company also produces/supplies industrial salt. Industrial salt are in high demand due to the diversity of applications in the soap and detergent industries, textile and dyeing industries to industries producing glass, polyester, plastics, rubber and leather and as well as in the chemical industry. Salt assists in cleaning gas and oil wells and is an essential component in the manufacture of paper, tires, brass, bleach and case-hardened steel. Salt is part of the caustic soda and chloralkali processes. It is also used as ice melters in various countries.

v. Besides these different industrial uses of salt, salt finds usage in more areas such as animal feeding salt, water softening/water treatment salt, and pool salt.

vi. They have an integrated production facility for our raw salt, industrial salt, and edible salt, at Nawa city which is located on the edge of Sambhar Lake. Their experience of more than a decade has enabled them to build an effective business model that gives us control over their processes from raw material procurement, refining and marketing to sales through our network. Their business model allows them to monitor and control the quality of our products on the supply side, and provides us the ability to respond quickly to our customers’ needs and preferences on the demand side.

Competitive Strengths

i. Experienced management team and promoters with qualified workforce.
ii. Established refining facility and integrated production with cost efficiencies
iii. Strong and consistent financial performance

Objects of the Goyal Salt Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Capital Expenditure for Quality Enhancement; ii. Brand Creation and Marketing Expenses; iii. Funding the working capital requirements of the company; and iv. General corporate purposes.

Goyal Salt Limited IPO Details:

Open Date: Sep 26 2023
Close Date: Oct 03 2023
Total Shares: 4,902,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 18.63 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 36 - 38 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 11 2023

Promoters And Management:

i. Rajesh Goyal is the Promoter, Chairman and Whole-time Director of the Company. He possesses Bachelor’s and Master’s degree in Commerce from University of Rajasthan. He has vast experience of over 25 years in the field of Salt Industry in India. After completing his education, in 2008 he joined Goyal Iodised Salt Works. He is very conversant in raw salt refining field. He has been associated with the company since incorporation. In the company he is responsible for providing strategic advice and guidance to the members of the board, to keep them aware of developments in the salt industry, managing refining operations and marketing areas of the company. He possesses strong leadership, management, and entrepreneurial skills with result- oriented and commercial acumen. ii. Pramesh Goyal is the Promoter and Managing Director of the Company. He has been associated with the company since incorporation. He is a first-generation entrepreneur and the visionary behind the Company. He completed his Bachelor’s and Master’s in Commerce from University of Rajasthan. He has more than 25 years of experience in salt industry in India. He connects well with the employees and acts as a bridge between employees and management of the company. He is responsible for managing accounting and finance operations of the company. iii. Lokesh Goyal is the Promoter and Whole-time Director of the Company. He has been associated with the Company since 2015. He has vast experience of over 17 years in the field of Salt Industry in India. He has completed his Bachelor’s and Master’s in Business Administration from Rajasthan Technical University. He is a young and dynamic person who is always ready to take challenges and has a good control over the refining and quality control aspects of the company. He has a team of well qualified and skilled technicians and employees. He focuses on product development and new innovations in products for customer satisfaction.

Financials of Goyal Salt Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Equity Share Capital 199.58 199.58 1,083.19
Reserves 922 970 535
Borrowings 1,297 1,060 920
Trade Payables 266 435 271
Other Liabilities 61 69 192
Total Liabilities 1,624 1,564 1,383
Net Block 520 580 569
Other Assets 75 47 127
Total NC Assets 595 627 696
Receivables 1,372 1,424 1,557
Inventory 479 517 455
Cash & Bank 21 17 22
Other Assets 279 148 272
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Sales 6,005 6,611 11,764
Raw Material Cost 4,317 3,745 5,800
Purchases of Stock In Trade 62 1,212 3,550
Change in Inventory -50 -53 61
Employee Cost 238 241 243
Other Expenses 1,156 1,171 1,437
EBITDA 290 298 680
EBITDA Margin 4.82% 4.51% 5.78%
Other Income 8 4 6
Depreciation 85 90 89
Interest 112 100 106
Profit before tax 93 108 485
Tax 25 46 131
Net profit 68 63 354
NPM (%) 1.13% 0.95% 3.01%
C. Cash Flow Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 249 282 670
Receivable -540 -53 -132
Inventory -204 -38 63
Payable 209 170 -164
Loans And Advances -68 168 -51
Other WC Items -86 -45 -5
Working Capital Changes -688 201 -290
Direct Taxes 5 -16 -50
Net Cash Inflow from Operating Activity -434 466 330
Cash from Investing Activity
Fixed assets purchased -123 -151 -77
Fixed assets sold 7 5 0.1
Investments purchased 0 0 -26
Other investing items 7 13 -78
Net cash inflow from investing activities -109 -133 -181
Cash from Financing Activity
Proceeds from shares 0 0 102
Proceeds from borrowings -232 -263 -140
Repayment of borrowings 868 26 0
Interest paid fin -112 -100 -106
Net Cash Flow -19 -5 5

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Goyal Salt Limited 118 3.53 1.97 19.2 38 68
Saboo Sodium Chloro Limited 36 0.09 0.02 N/A 19 81
* All the data is as per FY23.

Recommendation on Goyal Salt Limited IPO:

Review And Recommendation of Goyal Salt SME IPO by IZ team is 5/10 Read Complete Review Here

Lead Manager of Goyal Salt Limited IPO:

  1. Holani Consultants Private Limited

Registrar of Goyal Salt Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Goyal Salt Limited Plot No. 229-230, Guru Jambeshwar Nagar, Lane No. 7 Gandhi Path, Vaishali Nagar, Jaipur - 302021 Phone: +91 - 9116544418 Email: cs@goyalsalt.in Websitehttps://goyalsaltltd.com/

Discussion on Goyal Salt Limited IPO:


Leave a Reply