Shree Marutinandan Tubes Limited IPO

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Core Business Operations:

    • The company primarily deals in the trading of Galvanized Pipe and Electric Resistance Welding Mild Steel (ERW MS) Pipes, including a range of shapes and sizes.
    • Your products serve various industries like Agriculture, Oil, Public Health, Housing, Irrigation, Engineering, Infrastructure, and Industrial sectors.
    • The distribution network is predominantly focused on domestic wholesalers and distributors.

Procurement Strategy:

    • Steel pipes are sourced from top domestic manufacturers, ensuring quality and business relations.
    • A bulk procurement policy enables competitive pricing and efficient inventory management, contributing to timely deliveries.

Market Position:

    • The company is well-established in the steel tubes and pipes market, holding a significant market presence.

Strategic Expansion:

    • From FY 2023, a strategic shift towards forward integration was initiated to diversify the business.
    • A partnership with Shree Kamdhenu Machinery Private Limited for contract manufacturing of agricultural equipment marked this new direction.
    • This expansion caters to the increasing market demand for agricultural machinery and equipment.

New Product Line:

    • The company now offers customizable agricultural equipment, including potato digger machines, grader machines, hopper machines, groundnut de-stoner machines, pipe winder machines, and rotavators.
    • These products are manufactured by Shree Kamdhenu Machinery Private Limited to your specifications, ensuring high quality and meeting client expectations.

Advantages of Strategic Collaboration:

    • The collaboration allows for an expanded product range without the need for in-house manufacturing.
    • It places the company at the forefront of the agricultural equipment market, offering innovative solutions.

Financial Performance:

    • The company demonstrates a strong track record of revenue growth and profitability. However, specific financial indicators or Key Performance Indicators (KPIs) are not detailed in your overview.

Conclusion:

The company’s business model, focused on trading in the steel pipe sector and expanding into agricultural equipment manufacturing, demonstrates a strategic approach to growth and diversification. This positions the company well to capitalize on market opportunities in both its traditional and new business segments.

Objects of the Shree Marutinandan Tubes Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Meet Incremental Working Capital Requirements ii. General Corporate Purpose iii. To meet Public Issue Expenses.
DRHP of Shree Marutinandan Tubes Limited IPO
RHP of Shree Marutinandan Tubes Limited IPO

Shree Marutinandan Tubes Limited IPO Details:

Open Date: Jan 12 2024
Close Date: Jan 16 2024
Total Shares: 1,000,000
Face Value: ₹ 10 Per Equity Share
Issue Size: ₹14.30 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 143 Per Equity Share
Listing At: BSE SME
Listing Date: Jan 19 2024

Promoters And Management:

Mr. Vikram Shivratan Sharma. A highly motivated and enthusiastic individual with extensive experience in significant executive leadership accomplishment in business. Strong diplomatic skills and a natural affinity for cultivating relationship and persuading convening facilitating and building consensus among diverse individuals. Applies qualities of integrity credibility and a passion for progress to strategic governance efforts. Mr. Bharat Shivratan Sharma completed the Higher Secondary. He is involved in acquisition of new clients and building long standing relationship with existing clients of the Company. He is having good experience in Developing and executing company’s business strategy. He has vast Experience in directing and controlling the business operations and Manage and report on the effective implementation of a marketing strategy to maintain market relevance and promote products and services to increase sales. Mrs. Shwetaben arvindbhai Saparia the fellow member of Institute of Company Secretaries of India and currently working as an Company Secretary and Compliance Officer with the BSE Listed NBFC M/s. Krishna Capital & Securities Limited from December, 2018 to till today (ongoing). She has more than 10 years’ work experience in the field of Direct & Indirect Taxation, Finance, Management, Corporate Governance, Law, and Various regulatory requirements with RBI & Stock Exchange.

Financials of Shree Marutinandan Tubes Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 3,564 4,714 4,717 4,277
Other Income 34 4 6 7
Total Revenue 3,597 4,718 4,723 4,285
Purchases 3,453 4,856 4,493 4,070
Change in Inventories -2 -297 -193 -74
Employees Benefit Expenses 29 28 28 30
Other Expenses 21 50 41 33
EBITDA 97 81 354 225
Depreciation & Amortisation 2 4 11 4
Finance Cost 72 65 70 31
EBIT 95 78 343 221
OPM (%) 2.70% 1.72% 7.49% 5.25%
PBT 23 13 273 190
Tax 9 7 71 48
PAT 13 6 202 142
NPM (%) 0.37% 0.13% 4.27% 3.31%
No.of Shares 34.60 34.60 34.60 34.60
EPS 0.38 0.17 5.83 4.10

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Shree Marutinandan Tubes Limited 47 2 5.83 24.5 143 49
Swastik Pipe Limited 709 9 3.90 17.5 95.9 223
Hi-Tech Pipes Limited 1,861 29 2.26 53.6 148 2,028
APL Apollo Tubes Limited 16,166 642 23.14 56.6 1,566 43,449
* All the data is as per FY23.

Recommendation on Shree Marutinandan Tubes Limited IPO:

To be updated shortly

Lead Manager of Shree Marutinandan Tubes Limited IPO:

  1. Swastika Investmart Limited

Registrar of Shree Marutinandan Tubes Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Shree Marutinandan Tubes Limited A-21, Second Floor, Amrapali Complex, S.P Ring Road, Bopal, Ahmedabad – 380058 Phone: +91 079-29795873 Email: cs@shreemarutitubes.com Website: https://www.shreemarutitubes.com/index.php

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