(i) Milestone Furniture Limited was originally incorporated on March 12, 2014, Company was incorporated by our Promoters- Mr. Digambar S. Songhare & Mr. Ganeshkumar S.Patalikadan with an aim of running manufacturing and marketing of Interior and Modular Furniture business.
(ii) Company & its executives have developed the skill and expertise in Space & workstation Management, designing and innovation in Furniture used in Education, Healthcare and Corporate organization. The company has also developed the In-house technical & Design team to provide turnkey solution and implementation of interior and work space in Commercial, Residential and Institutions. The company aims to develop Interiors and Designs in Modular furniture and developed the technique to make all products as Make in India and provide competition to China and other Markets.
(iii) The company has successfully executed turnkey projects for design, supply, and implementation of Interiors and Modular furniture in Education, healthcare and corporate organization. The company has regular business from existing clients such as Poddar International School, Architect, and Contractors. The company has developed the regular clients for supply of office furniture and fittings.
(iv) With determined efforts and dedication, the company has developed the reputation, brand, and goodwill for quality furniture and timely delivery & installation. They have differentiated themselves from their competitors through the introduction of new products, including launching innovative designs targeted at addressing consumer needs, market trends and providing superior value to consumers. Their diversified product portfolio enables them to cater to a wide range of preferences and consumer segments. Their products are the Ready to use and provide space management and primarily Milestone Furniture Limited 40 targeted to clients in Education, healthcare, hospitality, banking, insurance and Infotech companies. Company diversified product portfolio is, therefore, relatively less susceptible to shifts in consumer preferences, market trends, and risks of operating in a particular product segment.
are:
1. To set up the manufacturing facility to manufacture the modular and innovative furniture
2. Working Capital Requirement
3. General Corporate Expenses
4. To meet the expenses of the Issue
Promoters of Milestone Furniture Limited Company are:
(i)Mr. Digambar Sudam Songhare, Managing Director, Commerce Graduate, having 12 years of business experience in Material Management and Interior Design,manufacturing and marketing of Interior and Modular Furniture. He has developed the skill and expertise in Space & work station Management, designing and innovation in Furniture used in Education, Healthcare and Corporate organization. He has focus and developed the In house technical & Design team to provide turnkey solution and implementation of interior and work space in Commercial, Residential and Institutions. He has participated the seminars and conference in Interiors and Designs in Modular furniture and developed the technique to make all products as ―Make in India and provide competition to China and other Markets. Under his guidance, Design & Innovation Team has developed the various technique and methodology for optimum space utilization and spacious work environment.
(ii)Mr. GaneshKumar Sadanand Patlikadan - CEO & ED
Technical Training in Tools and die and in Material Management and Interior Design, having 18 years of experience in manufacturing and marketing of Modular Furniture suitable for Education and Corporate organisation. During his career, he has developed the innovative design and material combination for education furniture used in classroom, library, Presentation,Cafeteria. He has developed the skill for Interior design and space management to have healthy work environment. He has successfully obtained orders from various reputed education organisation on regular basis for their expansion program.
Capital Structure:
(i) Authorized Share Capital
( 1,00,00,000 shares at FV@10)
10 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(60,00,000 Shares at FV@10)
6 Cr
(iii) Present Issue
( 32,97,000 Shares at FV@10)
3.297 Cr
(iv) Reservation for Market Maker (1,65,000 Shares at FV@10)
16.5 Lacs
(v) Net Issue to Public
(32,97,000 -1,65,000= 31,32,000 Shares)
3.132 Cr
(vi) QIB & HNI Quota-15,66,000
50%
(vii) Retail Quota- 15,66,000
50%
(viii) Paid Up Share Capital after the issue
9.297 Cr
Interesting Note: Recently in the month of 17th Oct 2017, 12th Dec 2017 and 15th Dec 2017 , the company has issued 10 Lacs, 14 Lacs and 6 Lacs shares to promoters at price of Rs. 12,45 and 45 respectively. So that means before the issue the company has issued 30 Lacs shares at an average of price of Rs.34 and the IPO has come at a price Rs.45.
Financials of Milestone Furniture Limited IPO:
1. Balance Sheet Snippet[ Financials as of Sept 2017]
(i) Shareholders’ Fund[Equity] Value
8.7614372 Cr
(ii) Asset
15.9338637 Cr
(iii) Liability
7.1724265 Cr
(iv) Debt/Equity[<1 ideal]
.81(resonable)
(v) Net Worth[Asset- Liability]
8.7614372 Cr
(vi) Current Ratio[ideally>1.5]
2.1
(vii) RONW[PAT/Net Worth] or ROE
7.25%
(viii) Book Value or NAV[ Net Worth/No.of Shares]
29.2
(ix) P/B [<5 ideal]
1.54(reasonable)
2. Profit n Loss Snippet
(i) The Reveune of the company in last 4 years ( FY14 to FY17) is 37 Lacs, 3.32 Cr,5.55 Cr and 8.9 Cr respectively. The Company is growing at a CAGR of 186.92%[Excellent].
(ii) The PAT of the company in last 4 years ( FY14 to FY17) is growing at a CAGR of 111.54%[ Excellent].
(iii) The EBITDA Margins of the company for FY14( 14%), FY15(3.37%), FY16(9.15%) and FY17(6.19%) . Though Company's Revenue growth is excellent but variable EBITDA margins in last 4 years is a cause of concern.
(iv) P/B(post issue)= 1.25
(v) Annualized EPS(post issue)= 1.36
(vi) Annualized P/E(post issue)= 33 at issue price of 45
3. Cash Flow Statement(all figures in lacs)
Particulars
FY17
FY16
FY15
FY14
(i) Net Cash Generated from Operation
-142.61
-6.57
-34.07
-9.2749
(ii) Net Cash Generated from Investment
-66.77
-8.84
-2.45
-34.03
(iii) Net Cash Generated from Financing Activity
231.29
20.55
27.86
54.13
(iv) Total[ (i)+(ii)+(iii) ]
21.91
5.14
-8.66
10.8251
(v) Cash and Cash Equivalents at the Beginning of the Year
7.29
2.15
10.83
-
(vi) Cash and Cash Equivalents at the end of the Year
29.2
7.29
2.17
10.8251
Note- The Company has negative Cash flows from operations in last 4 years which is negative, as Cash flow of a company is a key indicator to show the extent of cash generated from operations to meet its capital expenditure, pay dividends, repay loans and make new investments without raising finance from external resources"
Comparison With Peers:
Sr.No
Name of the Company
FV
EPS
PE
RONW(%)
1
Nilkamal Limited
10
79.38
23.14
16.98%
2
PIL Italica Lifestyle Limited
1
0.43
33.26
35.10%
3
Omfurn India Limited
10
3.22
7.3
10.31%
4
Milestone Furniture Limited
10
1.36
33
*8%
* Not Annualized. Calculate upto Sept 2017
Note: Since there are no listed peers available with the same line of business, the nearest listed peers matching with the business models of our Company has been considered and disclosed for the Investors to take better investment decisions.
Recommendation on Milestone Furniture Limited IPO:
Review and Recommendation of
Milestone Furniture Limited IPO
from our side is:
Rating: 4/10.
1-5: Fair
5-7: Good
7-10: Excellent
.
The industry, in which the company is operating, is highly and increasingly competitive due to presenceof many small time players in unorganized sector.
This should surely list in discount. Avoid it.
The industry, in which the company is operating, is highly and increasingly competitive due to presenceof many small time players in unorganized sector.