S.J.S. Enterprises Limited IPO

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The Company is one of the leading players in the Indian decorative aesthetics industry in terms of revenue in Fiscal 2020 and as at March 31, 2021, offered the widest range of aesthetics products in India, according to the CRISIL Report.

They are a “design-to-delivery” aesthetics solutions provider with the ability to design, develop and manufacture a diverse product portfolio for a wide range of customers primarily in the automotive and consumer appliance industries. The Company supplied over 115 million parts with more than 6,000 SKUs in Fiscal 2021 to around 170 customers in approximately 90 cities across 20 countries. They differentiate on the basis of the wide range of the product portfolio, quality of the product offerings, the product design and development capabilities and the strength of the relationships with customers located across various industries globally.

In addition to manufacturing aesthetics products that cater to the requirements for two-wheeler, passenger vehicle and consumer appliance industries, we also manufacture a wide range of aesthetics products that cater to the requirements of the commercial vehicles, medical devices, farm equipment and sanitary ware industries.

Its product offerings include decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminium badges, “In-mould” label or decoration parts (“IML/IMD(s)”), lens mask assembly and chrome-plated, printed and painted injection moulded plastic parts.

Its key customer base includes:

(i) Well-known automotive original equipment manufacturers (“OEMs”) such as Suzuki, Mahindra & Mahindra, John Deere, Volkswagen, Honda Motorcycle, Bajaj Auto, Royal Enfield and TVS Motors;
(ii) Tier-1 automotive component suppliers such as Marelli, Visteon and Mindarika;
(iii) Well-known consumer durables/appliances manufacturers such as Whirlpool, Panasonic, Samsung, Eureka Forbes, Godrej and Liebherr; • medical devices manufacturers such as Sensa Core
(iv) Sanitary ware manufacturers such as Geberit.

Competitive Strengths
i. Strong manufacturing capabilities and established supply chain network
ii. Innovative product designing capabilities
iii. A strong relationship with global Tier-1 companies
iv. Strong financials

Objects of the S.J.S. Enterprises Limited IPO:

The objects of the Offer are to : (i) to carry out the Offer for Sale of up to 1.47 Crores Equity Shares by the Selling Shareholders (ii) achieve the benefits of listing the Equity Shares on the Stock Exchanges.
DRHP of S.J.S. Enterprises Limited IPO
RHP of S.J.S. Enterprises Limited IPO

S.J.S. Enterprises Limited IPO Details:

Open Date: Nov 01 2021
Close Date: Nov 03 2021
Total Shares: 1.47 Crores
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 800 Cr.
Lot Size: 27 Shares
Issue Price: ₹ 531-542 Per Equity Share
Listing At: NSE,BSE
Listing Date: Nov 15 2021

Promoters And Management:

i. Ramesh Chandra Jain, is the Chairman and an Independent Director, of the Company. He holds a bachelor’s (honors) degree in technology in mechanical engineering from the Indian Institute of Technology, Kharagpur and a master’s degree in science (industrial engineering and administration) from the Cranfield Institute of Technology (now known as Cranfield University), United Kingdom. He has received the Society of British Aerospace Companies Prize in Aircraft Production, 1972-73 from the Cranfield University, United Kingdom. He has previously worked for 25 years in Eicher from where he retired as the group vice chairman. He has also worked in Hindustan Aeronautics Limited prior to Eicher. ii. K.A. Joseph, is the Managing Director of the Company. He holds a bachelor’s degree in science from the Bangalore University and a post graduate diploma in business administration from the St. Joseph’s College of Business Administration, Bangalore. He is one of the Promoters and co-founders of the Company. He has more than 34 years of experience in the aesthetics printing business. He leads the plant and manufacturing operations for the Company and has spearheaded the Company’s technological and product innovation over the years. He has also helped design the new manufacturing facility into which the Company shifted its operations in 2018. He is also a director on the board of Exotech. iii. Kevin K. Joseph,The objects of the Offer are to (i) to carry out the Offer for Sale of up to [●] Equity Shares by the Selling Shareholders; and (ii) achieve the benefits of listing the Equity Shares on the Stock Exchanges. is an Executive Director of the Company. He holds a bachelor’s degree in mechanical engineering from the Visvesvaraya Technological University, Belgaum. He has previously worked with Tata Elxsi Limited as a senior design engineer and works at the Company as the Executive - Manufacturing.

Financials of S.J.S. Enterprises Limited IPO:

Particulars (in Cr) Mar 21 Mar 20 Mar 19
Revenue from operations 251 216 237
Cost of raw materials consumed 99 84 94
Changes in inventory -2 -2 0.3
Employee benefits expense 36 32 31
Other expenses 42 37 42
Operating Profit 76 63 68
OPM % 30.27% 29.38% 28.72%
Finance costs 0.8 1.5 1.6
Depreciation and amortisation 14 12 9
Other Income 3.5 5 3.5
Profit before tax 64 54 52
Total tax expense 16 13 15
Profit for the year 47 41 37
EPS 15 13 12
 

Comparison With Peers:

There is no peer in the listed market as per RHP.

Recommendation on S.J.S. Enterprises Limited IPO:

Review and Recommendation of S J S Enterprise IPO by InvestorZone is 4/10 1. There is hardly any growth in the company in the last 3 years. 2. Company is debt free and having ROE of 15%. 3.  EPS (FY21) = 15, P/E = 35x, which is looks decently priced in bull market.

Lead Manager of S.J.S. Enterprises Limited IPO:

  1. Axis Capital Limited
  2. Edelweiss Capital Limited

Registrar of S.J.S. Enterprises Limited IPO:

  1. Link Intime India Private Limited

Company Address:

S.J.S. Enterprises Limited Sy No 28/P16 of Agra Village and Sy No 85/P6 of B.M Kaval Village Kengeri Hobli, Bangalore 560 082, Phone: +91 80 6194 0777 Email: compliance@sjsindia.com Website: https://www.sjsindia.com/index.php

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