Quality Foils (India) Limited IPO

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i. Quality Foils (India) Limited is manufacturers and exporters of Cold Rolled Stainless Steel Strips/ Coils and Stainless Steel Flexible Hoses/pipes. The Company use raw material of premium quality i.e. Hot Rolled Stainless Steel Coils/Strips mainly from Jindal Stainless Hissar Limited, Hissar. The company sourced more than 95% of raw material consumed from Jindal Stainless Hissar Limited in last three financial years.

ii. They are one of the growing manufacturers and exporters of Cold Rolled Stainless Steel Strips/ Coils and Stainless Steel Flexible hose pipes in India having over thirty years of experience in the manufacturing of stainless-steel products in two broad categories:
i. Cold Rolled Stainless Steel Coils/Strips;
ii. Stainless Steel Flexible Hose Pipes.

iii. Under their brand name “Quality”, they supply their Products i.e. Cold Rolled Stainless Steel Coils/Strips in for manufacture of SS Tube/Pipe, Utensils, Cutlery, Kitchen Sinks, Stainless Steel Flexible Hoses and Automobile components and Flexible Hose pipes to major applications such as high temp & medium pressure for Hydraulic Oil, Hot Water, Steam & Gas applications, chemical resistant, exhaust systems of steel, power, petrochemical, sugar, automobile and many other heavy engineering sectors.

iv. They have one manufacturing plant which is strategically located at 3, Industrial Development Colony, Hisar, Haryana-125005, having total area of 16,239 Sq, yards. (“Manufacturing Facility”) in close around 3-5 kilometers from the main source of raw material i.e. Jindal Stainless Hisar Limited, that helps us in reducing their logistic costs on procurement of raw materials.

v. They sell their products both in the domestic as well as the international markets. In the domestic market, they sell their Products to the manufacturer customers as well as to the traders and in the international market they supply their Products to the manufacturers and traders and through certain marketing representatives.

Competitive Strengths

i. International Accreditations and product approvals
ii. Specialised production of Cold Rolled Stainless Steel Coils/Strips and Hose Pipes
iii. Multi-fold demand of the Products

 

 

Objects of the Quality Foils (India) Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objects: - i. Funding capital expenditure requirements towards purchase of machinery ii. To meet the working capital requirements of the Company; iii. General Corporate Purpose; iv. To meet the Issue Expenses
DRHP of Quality Foils (India) Limited IPO
RHP of Quality Foils (India) Limited IPO

Quality Foils (India) Limited IPO Details:

Open Date: Mar 14 2023
Close Date: Mar 16 2023
Total Shares: 754,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 4.52 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 60 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 24 2023

Promoters And Management:

Mr. Tejasvi Bhargava, Born in Hisar, Haryana, India on November 15, 1979 he did his schooling in Hisar and full-time graduation from New Delhi and subsequently he did MBA from TVU (London), and further completed a Management course from IIM, Ahmedabad. Before stepping into the current business set up, he had worked as full-time Director at Voice Data Management Pvt. Ltd, Gurgaon (An IT BPO organization) for two years. Mr. Birdhi Chand Jain is the Chief Financial Officer of the Company. He holds a Bachelor’s degree in Commerce from M. D. University, Rohtak, Haryana. He is a member of the Indian Institute of Chartered Accountant of India from 1990. He has over 30 years of experience in the area of Finance, Accounts, Income tax, company law matters and liaison with various statutory departments. He joined the Company in 1991 as a Manager Accounts. Ms. Meenakshi is the Company Secretary & Compliance Officer of the Company. She holds a Bachelor’s degree in Corporate Affairs & Administrations and Master’s degree in Business Policy & Corporate Governance from IGNOU University. She is also a member of the Institute of Company Secretaries of India. She has over 3 years of experience in Secretarial, Legal and Listed Compliances. Prior to joining the Company, she has been previously associated with Gawar Group, Jindal Group and XtraPower Group.

Financials of Quality Foils (India) Limited IPO:

Particulars ( In Crore ) 6MFY23 2022 2021 2020
Revenue from Operations 104 179 123 151
Other Income 0.26 0.52 0.4 0.64
Total Revenue 104 180 124 152
Cost of Materials Consumed 85 157 100 129
Change in Inventories 4 -5 3 -1
Employee Benefits Expense 2 5 4 5
Other Expenses 8 15 9 12
EBITDA 4 6 6 6
Depreciation & Amortisation 0.74 1 1 1
Finance Cost 1 3 3 4
EBIT 3 5 4 5
OPM (%) 3.92% 3.86% 4.93% 4.49%
PBT 3 2 1 1
Taxes 1 0.59 0.36 0.23
PAT 2 1 0.95 1
NPM (%) 1.97% 0.90% 0.77% 0.71%
No.of Shares 0.28 0.28 0.28 0.28
EPS 7.21 5.67 3.35 3.77
P/E 8.31 10.57 17.86 15.87

Comparison With Peers:

In listed markets, they do not have any competitors as they involved in only 2 segments.

Recommendation on Quality Foils (India) Limited IPO:

Review and Recommendation of Quality Foil by IZ team is 5/10 1. Quality Foils (India) Limited is manufacturers and exporters of Cold Rolled Stainless Steel Strips/ Coils and Stainless Steel Flexible Hoses/pipes. 2. These Steel Strips and Stainless Steel find application in Tubes, Pipes, Cutlery, Utensils, Automobile Parts, Kitchen Sinks, LPG Gas Stoves, Furniture, Decorative Application. 3. Quality Foils have one manufacturing plant which is strategically located in Hisar, Haryana, having total area of 16,239 Sq, yards. (“Manufacturing Facility”) in close around 3-5 kilometers from our main source of raw material i.e. Jindal Stainless Hisar Limited, that helps us in reducing the logistic costs on procurement of raw materials. 4. Quality Foils sell its Products both in the domestic as well as the international markets. In the domestic market, they sell the Products to the manufacturer customers as well as to the traders and in the international market they supply the Products to the manufacturers and traders and through certain marketing representatives. 5. The revenue has increased from 152 Crores in Fy21 to 180 Crores in Fy23. CAGR growth of 9%. 6. PAT has increased from 1.01 Crores to 1.67 Crores. 7. This is very low Gross Margins business wherein the Fy22 margins stands at ~13%. 8. ROE is around 8.35%. 9. If we annualise 6MFy23 PAT, the EPS comes out to be 14x and P/E will be 4x.

Lead Manager of Quality Foils (India) Limited IPO:

  1. Khambatta Securities Limited

Registrar of Quality Foils (India) Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Quality Foils (India) Limited 3, Industrial Development Colony, Hisar, Haryana-125005 Phone: 01662-220327, 28 Email: cs@qualityfoils.com Website: http://www.qualitygroup.in/

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