M.V.K. Agro Food Product Ltd IPO
This company, operational since 2020, has quickly established itself as a key player in the sugar industry, with a focus on integrated production and the commercialization of by-products and waste products derived from sugar manufacturing.
Key Highlights of the Business:
- Core Operations: The company operates from a single location with a licensed crushing capacity of 2,500 Tones Cane per Day (TCD), engaging primarily in the production of sugar and, subsequently, in the commercialization of by-products such as Molasses, Bagasse, and Pressmud.
- Expansion and Diversification: Since its inception, the company has expanded its production capacities across all its product lines. A significant strategic move includes the proposal to diversify into the manufacturing of Ethanol, Bio-CNG, and Fertilizer, utilizing the backward integration of Molasses and processing Bagasse and Pressmud. This move aims to create additional revenue streams and further solidify the company’s market position.
- Capacity Overview:
- Sugar: 2,500 TCD
- Molasses: 120 Tones per day
- Bagasse: 750 Tones per day
- Pressmud: 90 Tones per day
- Investment in Greenfield Projects: The company plans to invest ₹3,488.17 lakhs and ₹1,750.00 lakhs towards establishing manufacturing units for Ethanol and Bio-CNG plus Fertilizer, respectively. This initiative represents a forward-thinking approach to leveraging waste materials for generating additional industrial and consumer products.
- Marketing and Distribution: The company employs a diversified marketing strategy, engaging domestic brokers for the local distribution of sugar to institutional manufacturers and wholesalers, and partnering with export-oriented commodity traders for international sales. This dual approach has enabled the company to establish a significant brand presence both domestically and internationally.
- Integration and Sustainability: The company boasts a completely integrated production facility that emphasizes zero wastage. Through the effective commercialization of by-products and waste materials, it operates as a zero discharge unit, showcasing its commitment to sustainability and efficient resource utilization.
- Track Record and Business Model: With a successful track record, the company has developed an efficient business model focusing on stringent control over raw material procurement, manufacturing operations, inventory management, and distribution logistics. Adherence to quality standards and responsiveness to consumer preferences underline the company’s operational excellence.
Conclusion
This business overview reflects a robust and forward-looking approach by a company deeply entrenched in the sugar industry yet eager to innovate and expand into related sectors. Through strategic diversification, sustainable practices, and a solid operational framework, the company is well-positioned to capitalize on emerging market opportunities while contributing to environmental sustainability. Its integrated business model, focusing on zero wastage and the commercialization of by-products, sets a benchmark for operational efficiency and environmental responsibility in the industry.
Objects of the M.V.K. Agro Food Product Ltd IPO:
M.V.K. Agro Food Product Ltd IPO Details:
Open Date: | Feb 29 2024 |
Close Date: | Mar 04 2024 |
Total Shares: | 5,490,000 |
Face Value: | ₹ 10 Per Equity Share |
Issue Size: | 65.88 Cr. |
Lot Size: | 1200 Shares |
Issue Price: | ₹ 120 Per Equity Share |
Listing At: | NSE Emerge |
Listing Date: | Mar 08 2024 |
Promoters And Management:
Financials of M.V.K. Agro Food Product Ltd IPO:
Particulars ( In Lakhs ) |
2021 |
2022 |
2023 |
6M-FY24 |
Revenue from Operations | 2,283 | 13,067 | 9,328 | 6,013 |
Other Income | 300 | 196 | 66 | 32 |
Total Revenue | 2,583 | 13,264 | 9,394 | 6,044 |
Cost of Materials Consumed | 6,709 | 8,983 | 8,920 | 772 |
Manufacturing Expense | 259 | 513 | 475 | 157 |
Changes in Inventories | -5,306 | 1,852 | -2,667 | 3,388 |
Employees Benefit Expenses | 239 | 505 | 649 | 303 |
Other Expenses | 150 | 208 | 356 | 100 |
EBITDA | 534 | 1,202 | 1,661 | 1,325 |
Depreciation & Amortisation | 45 | 179 | 227 | 164 |
Finance cost | 303 | 605 | 943 | 594 |
EBIT | 489 | 1,023 | 1,434 | 1,161 |
OPM (%) | 20.66% | 9.06% | 17.68% | 21.93% |
PBT | 185 | 418 | 491 | 568 |
Tax | 45 | 98 | 114 | 137 |
PAT | 140 | 320 | 377 | 430 |
NPM (%) | 5.44% | 2.41% | 4.02% | 7.12% |
No.of Shares | 154.90 | 154.90 | 154.90 | 154.90 |
EPS | 0.90 | 2.06 | 2.43 | 2.77 |
Comparison With Peers:
Name of the Company | Revenue (In Crore) | PAT (In Crore) | EPS ( in Rs) | P/E | CMP | Mcap (In Crore) |
M.V.K. Agro Food Product Limited | 93 | 4 | 2.43 | 49.2 | 120 | 186 |
Ugar Sugar Works Ltd | 1,794 | 103 | 9.16 | 13.6 | 83.1 | 935 |
Dwarikesh Sugar Industries Ltd | 2,103 | 105 | 5.57 | 14.1 | 80.1 | 1,508 |
Balrampur Chini Mills Ltd | 4,666 | 284 | 14.09 | 12.9 | 376 | 7,576 |
Dhampur Sugar Mills Ltd | 2,460 | 158 | 23.72 | 11.4 | 247 | 1,638 |
Lead Manager of M.V.K. Agro Food Product Ltd IPO:
Registrar of M.V.K. Agro Food Product Ltd IPO:
Company Address:
Discussion on M.V.K. Agro Food Product Ltd IPO:
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Hardly any growth in the company.