Pearl Green Clubs and Resorts Limited IPO

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i. Pearl Green Clubs and Resorts Limited is currently in the Business of agricultural and allied activities. It is engaged in trading of Agricultural Products such as of Wheat Corn, Rice, Seeds Cotton, Gram, Pulses, Cereals Peas etc. At Pearl Green Clubs and Resorts Limited (the company strive to provide a seamless bond between the Farmers, Private players and consumers to ensure that the Indian markets for agricultural products continue to flourish our services facilitate solutions at each step in the agricultural product life cycle, from strategic procurement on account of the purchaser, PGCRL’s experience has accorded it the understanding of how the agricultural commodity markets operate, and today PGCRL is proud to be an integral part of the agricultural business.

ii. The company is proposing to enter into the business of Tourism And Hospitality. It has proposed to open a resort in the name of Pearl Green Clubs and Resort in Gandhinagar, Gujarat. The property is located at Gandhinagar which is approximately 20 kms away from Ahmedabad. It is connected to NH-8 highway. It has a pleasant location with fruit bearing trees and greenery of natural surroundings and ideal for getting and is away from the city’s hustle and bustle. One of the point of interest is that the location is proximate to the dream project of the Prime Minister, the Gujarat International Financial Tec (GIFT) City, which is the major customer segment of the hotel.

iii. PGCRL’s Agricultural Commodities business is focused on trading in various Agricultural products in India. The company has been trading merchandising Cotton, Oilseeds, Grains, Pulses, Spices, Seeds and various agricultural based products in domestic markets and to the end users in major consumption markets Capitalizing on India’s vast geographical spread and range of reasons. PGCRL has successfully provided quality range of products, to its buyers all over the India. The company is present in every aspect of trade of bulk agricultural commodities from selling domestically, to doing third party trade.

iv. Competitive Strengths

  1. Growth Strategies
  2. Leveraging our Market skills and Relationships
  3. Focus on quality

Objects of the Pearl Green Clubs and Resorts Limited IPO:

The objects of the Issue are:- 1. To meet out the Capital Expenditure requirements of the Company; 2. To meet out the General Corporate Purposes; and 3. To meet out the Issue Expenses.
DRHP of Pearl Green Clubs and Resorts Limited IPO

Pearl Green Clubs and Resorts Limited IPO Details:

Open Date: Jun 27 2022
Close Date: Jun 29 2022
Total Shares: 6,30,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 11.72 Cr.
Lot Size: 600 Shares
Issue Price: ₹ 186 Per Equity Share
Listing At: BSE SME
Listing Date: Jul 07 2022

Promoters And Management:

i. Mr. Hemantsingh Naharsingh Jhala, Managing Director of the Company, has nearly three decades of experience in the agriculture and hospitality sectors. He is well known for his social activities and interests in sports namely Kabaddi and Rugby. Mr. Jhala is an eminent individual and is part of various Boards and Bodies including government agencies and held key positions. ii. Ms. Rekhadevi HemantSingh Jhala, Director of the Company is an Integral part of the Business Activities. She is actively involved in Business and act as mentor to all the Key Management Personnel of the Company. On societal front she heads all Gujrat Investor Protection Trust. iii. Ms. Rekha Vijaybhai Jhala, Director of the Company is Successfully managing or Business operations focusing on resources, Capacity utilization and Output. She also heads Logistic and Transport Division of the Company.

Financials of Pearl Green Clubs and Resorts Limited IPO:

Particulars (in Lakh) Sep-21 Mar-21 Mar-20
Sales 310 376 57
Cost of Meterial Consumed 229 358 50
Employee Benefits Expense 1 2 1
Other Expenses 4 7 1
Operating Profit 76 9 5
OPM % 24.52% 2.39% 8.77%
Other Income 0 0 0
Interest 0 0 0
Depreciation 0.33 0.15 0
Profit before tax 75 9 5
Total Tax Exps 20 2 1
Net Profit 56 7 4
NPM % 18.06% 1.86% 7.02%
No. of Shares 23.675 23.675 23.675
EPS in Rs 2.37 0.30 0.17

Comparison With Peers:

Name of the Company Sales (In Cr.) PAT (In Cr.) EPS PE RoCE Mcap (In Cr.) Returns 3Y Sales Growth (3Y)
Pearl Green Clubs and Resorts Ltd 6 1 4.74 39.24 7.51% 44 - 987%
White organic Retail Ltd. 74 7 2.05 91.5 21.30% 612 1251% 266%

Recommendation on Pearl Green Clubs and Resorts Limited IPO:

Review and Recommendation of Pearl Green Clubs and Resorts Limited SME IPO by InvestorZone is 2/10 1. Pearl Green Clubs and Resorts Limited is currently in the Business of agricultural and allied activities. It is engaged in trading of Agricultural Products such as of Wheat Corn, Rice, Seeds Cotton, Gram, Pulses, Cereals Peas etc.  2. Company is also planning to enter into the business of Tourism and Hospitality. Total site area would be 3,53,000 Sq. Ft with 40 proposed rooms. The property, where the company proposes to build resort is a leased property. The Promoters and their family has leased the property to the company. Company has entered into the lease with promoters at a rate of Rs. 1,00,000 per month.  3. Currently, company has 7 employees.  4. The industry in which company is doing business is highly competitive while being un-organized and fragmented. This market is not governed directly by any regulations or any governmental authority. The players in the informal education market are mostly small and un-recognized. 5. Currently, company do not have any warehouse to host inventories. So, they order from suppliers based on available demand in the market.  6. The revenue was 57 Lac in 2019 which has increased to 3.75 Crores in FY21. So, good growth is shown in the business.  7. Company has very high Trade Receivables of Rs. 3.05 Crores as on 30th Sept 2021. An increase of almost 2 Crs from 31st March 2021. Total sales of first 6 Months is ~3 Crores. So, out of this 3 Crores revenue, 2 Crores are stuck in Trade Receivables. Due to this, Cash Flow from Operations is almost Zero in first 6 Months of Fy22.  8. The funniest part is, company is raising funds for the resort which they are planning to make with IPO money. So, currently if anyone is planning to put money, they are putting their money on something which is still not generating any revenue. Plus, the current line of business is totally different so, we cannot gauze the kind of return they will generate with IPO money after using it for resort. 

Lead Manager of Pearl Green Clubs and Resorts Limited IPO:

  1. Fast Track Finsec Private Limited

Company Address:

UP GF-01, Krushna Complex, Near Choice, Navrangpura, Ahmedabad-380009, India.

Discussion on Pearl Green Clubs and Resorts Limited IPO:

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