Manoj Ceramic Limited IPO

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1. Core Products:

  • Specialization in two main products: Ceramic Tiles and Tile Adhesive.
  • Ceramic Tiles offer a diverse range of designs, colors, and sizes for various spaces.
  • Tile Adhesive ensures a strong and lasting bond for seamless installations.

2. Ceramic Tiles:

  • Dealer Network: Established in Western and Southern regions of India, including Maharashtra, Goa, Tamil Nadu, and Karnataka.
    • Dealers display products in showrooms and place orders based on customer preferences.
    • Multiple designs and sizes are maintained in stock at strategic locations for efficient order fulfillment.
  • Retail Showroom: Presence in Mumbai (Ghatkopar, Andheri) and Bangalore (Raja Rajeshwari Nagar).
    • Walk-in customers select products based on displayed designs.
    • AI-based software “Studio” on MCPLworld.com aids customers in choosing the right tiles.
  • Wholesale Stockiest Export: Exported Ceramic Tiles to Vancouver, Canada, and London, UK, establishing a subsidiary company in the UK.

3. Tile Adhesive:

  • Supplied under the brand name “MCPL” to end-users through a distributor network in Maharashtra.
  • B2B sales to architects, builders, and contractors directly.

4. Business Process:

  • Product Display:
    • Showcasing product samples at dealers’ outlets and retail showrooms.
    • AI-based software “Studio” aids in visualizing tiles in specific locations.
  • Assisting Buyers:
    • Sales teams guide customers through product selections.
    • Free use of AI-based software for informed decision-making.
  • Order Placement Process:
    • Check product availability and place orders with the depot.
    • Collaborate with area sales personnel for transparency and availability confirmation.
  • Dispatch and Delivery:
    • Ensure the dispatch of products from the depot to achieve smooth logistics.
    • Well-organized logistics system for timely and correct delivery to customers.
  • B2B Sales Process:
    • End-users (Architects, Builders, Contractors) visit showrooms, finalize selections, and confirm availability.
    • Senior management and manufacturers confirm material availability and schedule deliveries.
  • Tile Adhesive Process:
    • Customers contact distributors, place orders, and receive immediate supply if stock is available.
    • Orders beyond stock range are placed with the company, and timely deliveries are ensured.

5. Customer Experience:

  • Prioritizing every aspect of the customer experience, from product selection to efficient order processing and timely delivery.
  • Dealers play a vital role in ensuring customers receive top-quality ceramic products and a personalized experience.

Objects of the Manoj Ceramic Limited IPO:

The company intends to utilize the issue proceeds to meet the following objects: i. To meet the working capital expenses ii. General Corporate Purpose
DRHP of Manoj Ceramic Limited IPO
RHP of Manoj Ceramic Limited IPO

Manoj Ceramic Limited IPO Details:

Open Date: Dec 27 2023
Close Date: Dec 29 2023
Total Shares: 2,334,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 14.47 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 62 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jan 05 2024

Promoters And Management:

Mr. Manoj Dharamshi Rakhasiya aged 57 years, is the Managing Director and promoter of the company and has experience of more than three decade in the ceramic industry. He has completed his high school education form Mumbai. He oversees each and every operation of the company. He looks after the operational, financial and marketing proposals received by the teams. His major roles include administering business strategies to streamline company growth and ensure smooth running of existing operations. Mrs. Anjana Manoj Rakhasiya aged 55 years, is the director and promoter of the company, She has completed her high school education form Mumbai. Since incorporation, she oversees the company operations and oversees the accounting department. Mr. Dhruv Manoj Rakhasiya aged 34 years, is the Managing Director and promoter of the company, he has completed his Master of Business Administration (MBA) from Coventry University, London. He is responsible for handling strategizing marketing gimmicks and Research & Development. In the company he looks after administration, accounts, finance & legal department. He has experience of overall 10 years of experience in the business administration and managing finance.

Financials of Manoj Ceramic Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 3,557 4,314 7,351 4,315
Other Income 174 185 142 59
Total Revenue 3,731 4,500 7,493 4,375
Purchases of Stock-in-Trade 2,391 3,193 5,312 3,270
Change in Inventorie -144 -250 542 -23
Employee benefits expenses 362 462 268 163
Other Expenses 544 515 371 202
EBITDA 578 579 1,000 762
Depreciation & Amortisation 41 30 23 10
Finance Cost 509 425 483 345
EBIT 537 549 977 752
OPM (%) 15.49% 12.87% 13.34% 17.42%
PBT 28 124 494 407
Tax 20 30 132 105
PAT 8 95 362 302
NPM (%) 0.22% 2.10% 4.84% 6.90%
No.of Shares 83.34 83.34 83.34 83.34
EPS 0.09 1.13 4.34 3.62

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Manoj Ceramic Limited 74 4 4.34 14.3 62 52
Asian Granito India Limited 1,563 -87 -5.74 N/A 71.7 909
Murudeshwar Ceramics Limited 170 7 1.14 48.2 54 313
Orient Bell Limited 705 22 15.52 65.6 401 581
* All the data is as per FY23.

Recommendation on Manoj Ceramic Limited IPO:

Review and Recommendation of Manoj Ceramics SME IPO by IZ team is 5/10

1. Overview:

Manoj Ceramic Limited, a prominent player in the Indian ceramic industry, is known for its specialization in Ceramic Tiles and Tile Adhesive. The company operates through a strong dealer network in Western and Southern India, with notable retail showrooms in Mumbai and Bangalore. They have also forayed into international markets, exporting to Vancouver, Canada, and London, UK.

2. Products and Services:

a) Ceramic Tiles: Offered in diverse designs, colors, and sizes, catering to various customer preferences. b) Tile Adhesive (MCPL Brand): Supplied via distributors in Maharashtra and directly to B2B clients like architects and builders. c) Innovative Sales Tools: Utilization of AI-based software “Studio” for aiding customers in product selection.

3. Business Operations:

a) Distribution Network: Extensive dealer and distributor network in key Indian states. b) Retail Showrooms: Presence in major Indian cities, providing walk-in customers a range of product choices. c) B2B and Export Operations: Active engagement in B2B sales and international exports, including a subsidiary in the UK.Financial Performance:

4. Revenue Growth

a) Steady increase in revenue from operations over the years, with a significant jump in FY23. b) Profitability: Notable improvement in Net Profit Margins (NPM) and Earnings Per Share (EPS) in recent years. c) Comparison with Peers: The IPO is priced at P/E of 14x based on Fy23 financials which looks decently priced.

5. IPO Details:

a) Purpose: Aimed at funding working capital expenses and general corporate purposes. b) Issue Size: ₹14.47 Crores at ₹62 per equity share. c) Listing: Scheduled for listing on NSE Emerge.

6. Management Team:

a) Mr. Manoj Dharamshi Rakhasiya: MD with extensive industry experience, oversees operations and strategy. b) Mrs. Anjana Manoj Rakhasiya: Director focusing on operations and accounting. c) Mr. Dhruv Manoj Rakhasiya: MD with a focus on marketing, R&D, and finance.

Lead Manager of Manoj Ceramic Limited IPO:

  1. Swaraj Shares and Securities Private Limited

Registrar of Manoj Ceramic Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Manoj Ceramic Limited 1, Krishna Kunj, 140 Vallabh Baugh Lane, Ghatkopar (East), Mumbai – 400077 Phone: +91-9167271066 Email: info@mcplworld.com Website: https://mcplworld.com/home

Discussion on Manoj Ceramic Limited IPO:

1 Comment

    1. As on 30.09.2023, the total debt on books is ~60 Cr with Net-worth of INR 16 Cr. So, D/E is very high.

    2. ROE in the business is around 23% in FY23. That is decent ROE.

    3. They are into trading of Tiles business so whatever is the debt that is mostly for WC.

    4. As on 31.03.2023, ~33 Cr is stuck in Trade Receivables. That is they have 165 days of Trade Receivables which is very high and due to which they have shown net outflow of Cash from operations in FY23.

    5. Trading business generally have moat in terms of distribution. That investors have to see whether they have it or not.

    Reply

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