The Company was originally formed on May 23, 1994, in the name of V. B Spinning Mills. The Company’s name was changed to ” Marshall Machines Private Limited” on Jan 02, 2002. Thereafter, the control and management of the company were taken by Gaurav and Prashant Sarup, along with their father Late Shri Gautam Sarup.
(ii)Business of the Company
The Company is into the business of Developing, Manufacturing, and Marketing of Machine tool equipment. The business was originally founded by Mr. Gautam Sarup, who set up the business in the name and style of ” Marshall Industries” more than 54 years ago to initially manufacture hosiery machines. In coming years business moved to the design & manufacturing of High Precision Bench Lathes, Heavey Duty Lathes, & Capstan Lathes. The firm became a known brand in the manufacture of lathes. It was amongst the first Indian CNC Machines manufacturers and launched CNC machines way back in 1998.
(ii) Story of Marshall Industries a) In 1997, Marshall Industries entered into a technical tie-up with an American Company (M/s Path Wizard Inc) to export the mechanical and basic electrical elements of CNC lathes to the USA.
b) In 1998, Marshall Industries launched CNC lathes with Siemens/ Fanuc- CNC Controls in India during ” IMTEX- 98″ exhibition held at New Delhi and has been manufacturing CNC Lathes since then. Later, Mr. Gautam Sarup was joined in the business by his sons Gaurav and Prashant Sarup( promoters) after completing their engineering education. As a team, they grew the product range to include All Geared Lathes , Multi Spindel Drilling/Taping Machines and Special Purpose Machines.
(iv)Acquisition of Marshall Industries
In April 2006, the “Marshall Machines“ took over the running business of M/s Marshall Industries on as an where basis by allotting 3,40,000 Equity Shares in the company. Following Acquisition of M/s Marshall Industries by the company, all business of Marshall Industries shifted to the company.
(v)Awards and Recognition
Marshall has won several national awards for its products and technology and has come to be known as an innovative machine tool manufacturer in India and pioneer of ” Intelligent Automation“.
(vi)Current Product Portfolio
a) Patented Double and Four Spindle CNC Machines b) Automated Robotic Solutions c) Patent pending IOTQ suite for Intelligent equipment.
This innovative product line has brought high productivity, cost-effectiveness, and near zero defect production to its marquee customer base.
Objective of Marshall Machines Limited IPO are:
1. Capacity Augmentation
2. Up gradation of Existing R&D unit and IOTQ Center
3. Establishment of new IOTQ Centers
4. Working Capital Requirement
5. General Corporate Purpose
6. Issue Expenses
Promoters of Marshall Machines Limited Company are:
1. Mr. Gaurav Sarup
2. Mr. Prashant Sarup
(i) Authorized Share Capital
(1,50,00,000 Equity shares at FV=10)
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(106,80,000 Equity Shares at FV=10)
(iii) Present Issue
( 38,70,000 Equity Shares at FV=10)
(iv) Reservation for Market Maker (1,98,000 Shares at FV=10)
(v) Reservation for QIB & HNI (18,36,000 Equity Shares at FV=10)
(vi) Reservation for Retail (18,36,000 Equity Shares at FV=10)
(vii) Paid Up Share Capital after the issue
Average cost of Aquisition of the Promoters
Name of the Promoter
No. of shares
Average cost of acquisition
Financials of Marshall Machines IPO:
1. Assets and Liabilities Key Parameters
2. Profit n Loss Key Parameters
3. Cash Flow Statement(all figures in lacs)
(i) Net Cash Generated from Operation
(ii) Net Cash Generated from Investment
(iii) Net Cash Generated from Financing Activity
(iv) Total[ (i)+(ii)+(iii) ]
(v) Cash and Cash Equivalents at the Beginning of the Year
(vi) Cash and Cash Equivalents at the end of the Year
Key Notes:a) The Revenue is growing at CAGR of 11% from FY14 to FY18.
b) The PAT is growing at CAGR of 71.35% from FY14 to FY18.
c) The Annualized EPS[ Post Issue] =3.44d) P/E(post issue)= 12.2[ Reasonably Priced].
e)P/B(post issue)= 1.75[ Reasonably Priced]
f)D/E(post issue) =1.77(manageable)
g)Mcap/Sales(ideally <2)= 1.03 on FY18 sales(Reasonable).
i) The Company has manageable recieveable days of 70 in FY18. The Receivables/Sales stands at 19%.
Comparison With Peers:
Lokesh Machine Limited
Note: Parameters are calculated based on FY18 earnings and Current Market Price of Shares on 21.08.2018.
Recommendation on Marshall Machines IPO:
Review and Recommendation of Marshall Machines Limited IPO from IZ team is:6/10
[ The company has a good product line of CNC lathes with a lot of patents and will be doing expansion of the existing plant with IPO proceeds. The Valuations in terms of P/E, P/B, and M.cap/Sales looks reasonable as compared to its peers. The recent listing of Macpower CNC has given excellent returns]