Macfos Limited IPO
i. Macfos Limited is primarily an e-commerce based Company focused on the marketing of a broad range of electronic components which finds application in basic and advanced engineering products & projects, including emerging technologies such as IoT, Robotics, Automations, Drone, Electric Vehicles, 3D Printing and Auto Guided Vehicles. Their broad portfolio consists of over +12,000 SKU’s of electronics components and parts that facilitate consumers such as manufacturers, electrical & mechanical engineering students, educational institutions, researchers and developers, to turn their ideas into reality as well as to speed up their product R&D and prototyping cycle
ii. Through the e-commerce website and mobile application, Robu.in, they sell a broad range of electronic items, including: robotic parts, drone parts, E-bike parts, IoT & Wireless items, 3d printer & parts, DIY learning kits, development boards, raspberry Pi (Single board computers& Peripherals), sensors, motors, motor drivers, pumps, batteries, chargers, electronic modules & displays and various other mechanical and electronic components.
iii. They are connected with over +140 overseas and domestic vendors for sourcing the electronic items and parts. The company also have a portfolio of 3 owned brands (details given hereunder), which are manufactured/procured from third parties based on the specifications built by them through the R&D efforts. With the dedicated fulfillment Centre in Pune, Maharashtra comprising of 7,900 sq. ft. area and third-party logistics services, the company is capable to deliver the products across India as well as overseas. In F.Y. 2021-22, they have served over 2 lakh orders from all the 28 states of India and 6 Union Territories of India.
iv. Their portfolio of electronic components & items:
i. Robotic parts – Their portfolio of robotic parts consist of over +70 items which includes various robotic parts such as mecanum wheel, Chassis, robotic arm, shock absorbers, robot car kit etc.
ii. Drone parts – Their range of drone parts consist of over +850 items which includes drone kits, drone frame & accessories, flight controller, drone transmitter & receiver, FPV Cameras, GPS and antennas, drone motor, drone speed controller, propellers, drone gimbal accessories etc.
iii. E-bike parts – Their range of e-bike parts consist of over +100 items which includes e bike kits, motors & controllers, batteries and other mechanical & electronic accessories.
iv. IoT & Wireless items – Internet of Things, or IoT, is a way to connect commonly used objects to the Internet and then controlling them through a WiFi connected device. Their range of IoT & Wireless items consist of over +550 items which includes cameras, development board/kits, Wifi module, Bluetooth & NRF Module, GSM/GPRS, IR and RF transmitters & receivers, advance controller board and wireless smart switches.
i. Extensive and diverse portfolio of electronic items and parts along with content rich platform
ii. Strong, diverse and growing customer base
iii. Scalable and reliable technology platform
Objects of the Macfos Limited IPO:
Macfos Limited IPO Details:
|Open Date:||Feb 17 2023|
|Close Date:||Feb 21 2023|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Issue Size:||23.74 Cr.|
|Lot Size:||1200 Shares|
|Issue Price:||₹ 96-102 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Mar 01 2023|
Promoters And Management:
Financials of Macfos Limited IPO:
|Particulars (In Lakh)||2022||2021||2020|
|Revenue From Operations||5,551||2,712||1,622|
|Cost of Material Consumed||26||21||19|
|Purchase of Stock-in-Trade||4,327||2,037||1,124|
|Change In Inventories||-655||-219||-99|
|Employees Benefit Expenses||293||188||127|
|No. Of Shares||111.63||111.63||111.63|
Comparison With Peers:
Recommendation on Macfos Limited IPO:
Review and Recommendation of Macfos Limited from IZ team is 4/101. They procure broad range of electronic items, including: robotic parts, drone parts, E-bike parts, IoT & Wireless items, 3d printer & parts, DIY learning kits, development boards, raspberry Pi (Single board computers& Peripherals), sensors, motors, motor drivers, pumps, batteries, chargers, electronic modules & displays and various other mechanical and electronic components from over +140 overseas and domestic vendors. 2. They sell these parts from their e-commerce website i.e. https://robu.in/ and via mobile application. 3. Given that they are selling via their website, let us look at their overall organic monthly traffic. Total's monthly traffic is 5.50 lakh, which is rather impressive. They have good market for DIY and Electronic projects. 4. Revenue has increased from 16 Crores in Fy20 to 55 Crores in Fy22. 5. Average revenue per order is Rs.1952 in Fy20 to Rs.2700 in Fy22. 6. Increase of EBITDA margins from 8% in Fy20 to 16% in Fy22 is surprising. 7. In the F.Y. 2021-22, they have served over 2 lakh orders placed by over 83,000 consumers on the website, mobile application and directly. 8. Promoters, Atul Maruti Dumbre, Binod Prasad and Nileshkumar Purushottam Chavhan who have cumulatively over 30 years of experience in the electronics industry and we benefit immensely from their expertise. 9. The entire issue is OFS which is worrisome sign. The asking valuation is ~113 Crores for the business which is generating a revenue of Rs.55 Crores in Fy22. P/E is 19x. The issue looks on higher side.