Healthy Life Agritec Limited IPO

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i. Healthy Life Agritec Limited incorporated in the month of November 2019, is engaged in the business of trading of Raw Milk in the state of Maharashtra and Live Chicken and Agro Products in the state of Maharashtra and Karnataka. The company procure raw cow milk from milk farmers in the State of Maharashtra, a significant cow milk producing region in India.

ii. Their direct procurement model enables them to control costs and ensure quality of the raw milk procured. They have engaged procurement partners, to co-ordinate the milk procurement process with milk farmers and supply Raw milk to milk wholesalers in the state of Maharashtra.

iii. In addition to Raw Milk, they also procure Poultry from Poultry Growers in the state of Maharashtra and Karnataka and supply poultry to Chicken Wholesalers in the state of Maharashtra and Karnataka.

iv. During 2021-22, The Company has sold 39.20 Lakhs litres of raw Cow Milk and 7.69 Lakhs Kgs of Live Chicken which contributes approximately 60.05% and 39.95% of total revenue of the Company. During 2020-21, The Company has sold 6.50 Lakhs litres of raw Cow Milk and 1.21 Lakhs Kgs of Live Chicken which contributes approximately 59.95% and 40.05% of total revenue of the Company.

Competitive Strengths:

  • Organisation stability, Rich management experience and skilled team.
  • Smooth flow of operations.
  • Well-defined organizational structure.
  • Existing Supplier Relationship.
  • Quality Policy.
  • Customer Centric Business Model.
  • ISO Certifications.
  • Comprehensive solution for logistics requirement.

Objects of the Healthy Life Agritec Limited IPO:

The Objects of the Issue are: A. To meet the working capital requirements B. To meet the Issue of Expenses C. General Corporate Purposes
DRHP of Healthy Life Agritec Limited IPO
RHP of Healthy Life Agritec Limited IPO

Healthy Life Agritec Limited IPO Details:

Open Date: Jul 13 2022
Close Date: Jul 18 2022
Total Shares: 10,000,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 10 Cr.
Lot Size: 10000 Shares
Issue Price: ₹ 10 Per Equity Share
Listing At: BSE SME
Listing Date: Jul 26 2022

Promoters And Management:

i. Ms. Divya Mojjada, aged 34 years, is the Promoter and Managing Director of the Company. She has been on the Board of Directors of the Company since August 01, 2020. She holds a Bachelor’s and Master’s Degree in Business Administration from Monash University, Australia; and also, a Bachelor in Science in Computer Application from Alagappa University, India. She was actively involved in her family business into farm and dairy segment for over 10 years and has an in-depth knowledge on the overall working of this segment. Since the inception of the company, she has been spearheading the operations. ii. Mr. Mohammed Sadiq, aged about 38 years is a Non-executive Director in the Company. He has been on the Board of Directors of the Company since December 27, 2021. He holds a Bachelor Degree in Mechanical Engineering from Visvesvaraya Technological University, Belgaum - Bengaluru. He has an in-depth knowledge in farm and dairy segment and has been a driving force in guiding and building the dairy business of the company. iii. Mr. Anil Kumar Vijay, aged about 54 years is an Independent Director in the Company. He has been appointed in the Board of Directors of the Company on April 20, 2022. He holds a Master’s Degree in Business Administration from The International University, Louisiana, USA.

Financials of Healthy Life Agritec Limited IPO:

Particulars (in Lakhs) Mar-22
Sales 3,396
Cost of Materials Consumed 3,202
Change in Inventories -22
Employee Benefits Expense 30
Other Expenses 68
Operating Profit 118
OPM % 3.47%
Other Income 0
Finance Cost 1.80
Depreciation 4.18
Profit before tax 112
Total Tax Exps 29
Net Profit 83
NPM % 2.44%
No. of shares 220.12
EPS 0.38

Comparison With Peers:

There is no listed company related to this business.

Recommendation on Healthy Life Agritec Limited IPO:

Review and Recommendation of Healthy Life Agritech by InvestorZone is 2/10 1. Healthy Life Agritec SME IPO is incorporated in November 2019, and engaged in the business of trading of Raw Milk in the state of Maharashtra and Live Chicken and Agro Products in the state of Maharashtra and Karnataka. 2. They basically supplies milk to the Wholesalers. And, the similar thing they do in Chicken and Agro Products business. This business of trading has no barriers to entry and highly competitive market. Plus, company do not have any arrangement to ensure the quality of milk and chicken they are buying from supplier. 3. As they have started operations in Nov-20, so, full year data is available for FY22 only. In Fy22, they did a Revenue of ~33 Crores and EBITDA of 1.17 Crores, that means Margins in the business are just 3.47%. Total PAT in Fy22 is 81 Lacs, So, NPM is 2.45%. 4. Despite producing 33 Crores of Revenue and 81 lacs of PAT, the company not able to generate cash flow from operations. 2.75 Crores stuck in trade receivables and 8.71 Crores of loans and advances given to vendors. 5. Total Shares outstanding after IPO ~220 Lac and PAT of Fy22 is 81 Lac. EPS would be 0.36x. 6. P/E at issue price of Rs.10 is 27x, which looks over priced. 7. We can conclude that currently company is just 1 year old, no moat in the business, doing business in the highly competitive market, no arrangement to check quality of milk and chicken and pricing has been done very high.

Lead Manager of Healthy Life Agritec Limited IPO:

  1. Finshore Management Services Limited

Registrar of Healthy Life Agritec Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Healthy Life Agritec Limited Survey No 97/3, 4,8, 96/1, Cronos Holding, Western Express Highway, Kashimira, Thane - 401107 Phone: +91 98188 73657 Email: cs@healthylifeagritec.com Website: http://www.healthylifeagritec.com/index.html

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