Mandeep Auto Industries Limited IPO

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The business overview They’ve shared is a comprehensive account of Mandeep Auto Industries Limited, a company engaged in manufacturing and supplying sheet metal components, auto parts, sprocket gears, and machined components for diverse industries. Here’s a summary that encapsulates the key aspects:

Establishment and Evolution:

In 2000, Mr. Gurpal Singh Bedi founded M/s Mandeep Industries, a sheet metal component manufacturer. The company ventured into the automotive component segment in 2010-2015, adding Gear Hobbing and CNC lines to its facilities. A complete in-house inspection facility was established in 2012. By 2018, an in-house tooling/machine shop was established.

Corporate Structure:

On April 19, 2023, M/s Mandeep Auto Industries Limited was incorporated to take over the business operations of M/s Mandeep Industries. A Business Transfer Agreement executed on June 30, 2023, enabled the seamless acquisition of M/s Mandeep Industries by the new corporate entity.

Business Operations

Primary Activities:
i. Manufacturing and supplying sheet metal components, auto parts, sprocket gears, and machined components.
ii. Serves multiple industries, including automotive, tractor, material handling, earth-moving equipment, railways, and defense.

Manufacturing and Facilities:
i. Equipped with advanced technologies and stringent quality control mechanisms.
ii. Customizes components per specific customer needs, emphasizing precision and prompt service.
iii. The manufacturing unit is certified under ISO 9001:2015 and ISO 14001:2015.
iv. The facilities contain diverse machinery such as power presses, CNC turning machines, gear hobbing, welding, and specialized inspection equipment.

Market and Customer Engagement

Product Portfolio Expansion:
i. Constantly evolving and expanding the product portfolio with new designs and maintaining strong customer relations.
ii. Emphasizes customer engagement through personal marketing and a responsive sales team to gain industry insights.

This overview captures the company’s robust foundation, technological capabilities, customer-oriented approach, and industry presence, demonstrating a resilient and strategically positioned business in the manufacturing sector.

Objects of the Mandeep Auto Industries Limited IPO:

The objects of the present issue of Equity Shares are: i. Expansion of the existing Manufacturing Facility located at Plot No 26, Nangla, Faridabad Haryana - 121001 by construction of the building on the land adjacent to the existing manufacturing unit, purchase of equipment/machineries, etc. ii. Repayment/prepayment of certain borrowings availed by the Company; iii. Funding working capital requirements; and d. General Corporate Purpose
DRHP of Mandeep Auto Industries Limited IPO
RHP of Mandeep Auto Industries Limited IPO

Mandeep Auto Industries Limited IPO Details:

Open Date: May 13 2024
Close Date: May 15 2024
Total Shares: 3,768,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 25.25 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 67 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 20 2024

Promoters And Management:

Mr. Gurpal Singh Bedi (DIN: 06838497), 53, is the Promoter and Managing Director of the company. Formerly the proprietor of M/s Mandeep Industries, he has over 25 years of experience in marketing, sales, and manufacturing of auto components. He is highly skilled in strategic planning, business development, and operations management. His leadership has driven significant growth and expanded business into new markets. Recognized for his business acumen, he has earned numerous awards throughout his career. Mrs. Nidhi Bedi (DIN: 06838505), 45, is a Non-Executive Director of the company and the proprietor of M/s JBJ Industries, which manufactures various metal sheets. With extensive experience in leading teams and managing finances, she offers strategic financial guidance and identifies opportunities for growth. Her expertise in the automotive components sector, combined with her leadership skills, drives the success of the organization. Mr. Rajveer Singh Bedi (DIN: 10123159), 22, is an Executive Director of the company with a B.Tech. in Mechanical Engineering specializing in Smart Manufacturing and Automation from Manav Rachna University. He manages the company's manufacturing operations, overseeing the supply chain, developing strategies, and ensuring product quality. Despite his brief tenure in the industry, he has gained valuable expertise in marketing and management, consistently identifying process improvements to enhance efficiency. He is a visionary leader dedicated to delivering innovative, impactful solutions for the company's growth.

Financials of Mandeep Auto Industries Limited IPO:

Particulars ( In Crore )
2021
2022
2023
9M-FY24
Revenue from Operations 16 22 29 22
Other Income 0 0 0.7 0.2
Total Revenue 16 22 30 22
Purchase of Materials 14 21 27 21
Change in Inventories -2 -4 -3 -5
Employees Benefit Expenses 0.7 1 1 0.9
Other Expenses 2 2 3 1
EBITDA 1 1 2 4
Depreciation & Amortisation 0.2 0.2 0.2 0.2
Finance Cost 0.4 0.3 0.6 0.6
EBIT 1 1 2 4
OPM (%) 8.04% 6.58% 7.42% 18.21%
PBT 0.7 0.9 1 3
Tax 0.2 0.2 0.4 0.8
PAT 0.5 0.6 1 2
NPM (%) 3.19% 2.95% 3.52% 10.89%
No.of Shares 1.03 1.03 1.03 1.03
EPS 0.48 0.62 1.01 2.28

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Mandeep Auto Industries Limited 29 1 1.01 66.0 67 69
Kranti Industries Limited 93 5 4.94 32.3 70.6 81
Porwal Auto Components Limited 141 -1 -0.68 40.3 56.6 85
Lumax Auto Technologies Limited 1,847 111 13.63 28.9 467 3,181
* All the data is as per FY23.

Recommendation on Mandeep Auto Industries Limited IPO:

1. Mandeep Auto Industries Limited is actively engaged in the manufacture and supply of diverse auto parts, including sheet metal components, sprocket gears, and precision machined components. These products cater to a wide range of industries such as automotive, material handling, earth moving equipment, railways, defense, and more. 2. The company's manufacturing facilities are equipped with advanced technology ensuring products meet stringent quality standards. Additionally, Mandeep Auto Industries specializes in custom component manufacturing according to specific client requirements, focusing on high precision and timely delivery. 3. Business Strategy and Client Engagement The company places a strong emphasis on expanding its product portfolio through continuous innovation and design development. Mandeep Auto Industries prides itself on its long-standing client relationships, with a significant portion of business generated from repeat customers. Regular engagement with customers allows the company to stay abreast of industry trends and customer expectations, which informs product development and enhancement. 4. Competition Landscape Competitive Environmen :- The automotive component manufacturing industry is intensely competitive, with numerous players both organized and unorganized. Mandeep Auto Industries faces competition from large, well-established corporations with greater resources and economies of scale. Despite these challenges, the company leverages its extensive experience and commitment to quality to distinguish itself from competitors. Strategic Competitive Advantages :- Key competitive factors include strong client relationships, a robust reputation for quality, and competitive pricing. Mandeep Auto Industries' long-standing market presence, broad product range, and consistent focus on quality and innovation provide it with a strategic advantage. These attributes are critical in securing direct deals with customers, who prioritize range, quality, and pricing in their procurement decisions. Emerging Challenges :- Recent trends towards more advanced electronic integration and vehicle electrification have introduced new competitors, particularly technology-driven entrants. Additionally, some of Mandeep Auto Industries' OEM customers produce competing products, adding another layer of competition. 5. The Revenue has Increased from Rs.16 Crores in FY21 to Rs.29 Crores in FY23. 6. The EBITDA has Increased from 1 Crores in FY21 to 2 Crores in FY23. 7. The PAT has Increased from 49 Lakhs in FY21 to 1 Crores in FY23. 8. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 3.05, 9. Market Capitalization is 69 Crore & P/E is 21.96x based on FY24

Lead Manager of Mandeep Auto Industries Limited IPO:

  1. Jawa Capital Services Private Limited

Registrar of Mandeep Auto Industries Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Mandeep Auto Industries Limited Plot No 26, Nangla Faridabad-121001 Phone: +91-129-2440045 Email: info@mandeepautoindustries.com Website: https://www.mandeepautoindustries.com/

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