Kataria Industries Limited IPO

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The company, established in 2004, specializes in the manufacturing and supply of Low Relaxation Pre-stressed Concrete (LRPC) Strands and Steel Wires, Post-tensioning (PT) Anchorage System, HDPE Single Wall Corrugated (SWC) Sheathing Ducts, Couplers, and Aluminium Conductors. These products serve a diverse range of sectors, including infrastructure, roads, bridges, flyovers, metros, railways, high-rise buildings, atomic reactors, LNG tanks, and power transmission and distribution lines.

Global Reach

From FY 2020-21 to FY 2022-23 and the nine-month period from April 2023 to December 2023, they have expanded their market presence, selling their products in India and several international markets, including Dubai, Qatar, Nepal, Iran, Oman, Bahrain, and Brazil.

Strategic Divestments and Acquisitions

To focus on their core business, they transferred their Plastic and Wind Mill Divisions in 2013 to Kataria Plastics Private Limited and Shree Hanuman Mining Corporation Private Limited, respectively, following a Scheme of Arrangement and Demerger approved by the Madhya Pradesh High Court.

In 2022-23, they acquired a 0.80 MW wind farm in Karnawad, Dewas, Madhya Pradesh, for captive electricity consumption at their Ratlam plant. This acquisition was formalized through a Supplementary Power Purchase and Wheeling Agreement executed on October 18, 2022.

Diversification into Real Estate

To diversify their income streams, they have invested in real estate, generating steady income through property rentals. In 2023, they acquired two commercial properties in Surat and Vadodara, Gujarat, further enhancing their asset portfolio.

Conclusion

Their company stands as a robust and dynamic player in the manufacturing and supply of critical construction and infrastructure materials. With a strong commitment to quality, technological advancement, and strategic growth, they are well-positioned for continued success and expansion in both domestic and international markets.

Objects of the Kataria Industries Limited IPO:

The company proposes to utilize the Net Proceeds from the issue towards the following objects i. Capital Expenditure for plant and machineries; ii. Repayment of Debt iii. General corporate purposes

Kataria Industries Limited IPO Details:

Open Date: Jul 16 2024
Close Date: Jul 19 2024
Total Shares: 5,685,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 54.58 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 91 - 96 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 24 2024

Promoters And Management:

Arun Kataria, 42, is the Promoter and Managing Director of the company since May 2004. He holds a Commerce degree and has completed M.Com. Part-I from Vikram University, Ujjain. With over 19 years of experience, he specializes in financial management, marketing, exports, and strategic planning. He oversees domestic and international markets, production automation, quality control, and overall business operations. Anoop Kataria, 36, is the Promoter, Whole-Time Director, and CFO of the company. He completed his B.Com from the University of Wollongong, Dubai Branch. From 2015 to 2023, he served as a director in over 10 companies. With expertise in finance, accounting, marketing, investment, and strategy, he guides the preparation of the annual operating plan and implements the business strategy as decided by the board. He supervises the accounts, advises on resource utilization, keeps the board informed about the company's financial position, and ensures legal and statutory compliance while overseeing marketing aspects. Sunil Kataria, 57, is the Promoter and Non-Executive Director of the company. He holds a Master's in Commerce from Vikram University, Ujjain, completed in 1990. From May 2004 to April 2011, he served as Managing Director of Kataria Industries Private Limited, overseeing financial management, investor relations, and operations. Over the past two decades, he has been a director or designated partner in eight companies/LLPs. His extensive management experience ensures better compliance for the company.

Financials of Kataria Industries Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 24,963 33,183 33,913
Other Income 86 210 236
Total Revenue 25,049 33,393 34,149
Cost of materials consumed 20,119 28,060 27,110
Cost of Traded Goods 124 47 1,113
Changes in inventories -104 -70 -309
Employees Benefit Expenses 495 551 750
Other Expenses 2,222 2,597 2,543
EBITDA 2,192 2,208 2,942
OPM (%) 8.75% 6.61% 8.61%
Depreciation & Amortisation 360 400 566
EBIT 1,833 1,808 2,376
Finance Cost 767 980 885
PBT 1066 828 1490
Tax -327 -50 -488
PAT 738 778 1002
NPM (%) 2.95% 2.33% 2.93%
No.of Shares 215.31 215.31 215.31
EPS 3.42 3.61 4.65

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Kataria Industries Limited 339 10 4.65 20.6 96 207
Kamdhenu Limited 725 50 18.64 29.1 543 1,461
Incredible Industries Limited 818 6 1.28 33.7 43 201
Bharat Wire Ropes Limited 622 96 14.16 17.6 248 1,698
* All the data is as per FY24.

Recommendation on Kataria Industries Limited IPO:

1. Kataria Industries Limited is a manufacturing and supply company specializing in Low Relaxation Pre-stressed Concrete (LRPC) Strands and Steel Wires, Post-tensioning (PT) Anchorage Systems, HDPE Single Wall Corrugated (SWC) Sheathing Ducts, Couplers, and Aluminium Conductors. 2. Their products serve a variety of sectors including infrastructure, roads, bridges, flyovers, metros, railways, high-rise buildings, atomic reactors, LNG tanks, and power transmission and distribution lines. 3. Market Presence and Export Over the past three fiscal years (F.Y. 2020-21 to F.Y. 2023-24), they have supplied their products not only within India but also to several countries globally, including Dubai, Qatar, Nepal, Iran, Oman, Bahrain, and Brazil. 4. Product Applications and Market Potential Their major products, including LRPC strands, PT anchorages, sheathing ducts, and couplers, are essential in various infrastructure projects. The pre-stressed concrete wire industry is highly fragmented, with significant potential in the Asia-Pacific region, particularly in the construction industry. They face competition from domestic companies, competing on product quality, technology, cost, delivery, service, and client relationships. 5. The Revenue has Increased from Rs.249 Crores in FY22 to Rs.339 Crores in FY24. 6. The EBITDA has Increased from 22 Crores in FY22 to 29 Crores in FY24. 7. The PAT has Increased from 7 Crores in FY22 to 10 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.94, and EPS is 4.65, 9. Market Capitalization is 207 Crores and P/E is 20.6x based on FY24.

Lead Manager of Kataria Industries Limited IPO:

  1. Interactive Financial Services

Registrar of Kataria Industries Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Kataria Industries Limited 34-38 and 44, Industrial Area Ratlam-457001 Phone: 07412 299407 Email: info@katariagroup.co.in Website: https://www.katariaindustries.co.in/

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