(i) Soni Soya Products Limited is engaged in the business of processing and trading of organic and non- genetically modified organisms (non-GMO) agricultural products such as Soya, Maize( Corn), Wheat, Flax seeds and Mustard, Oil, Rice, Pulses, Herbs, Spices, and other grains.
(ii) Our Company is registered with U.S. Food and Drug Administration pursuant to the Federal Food Drug Cosmetic Act, as amended by the Bioterrorism Act of 2002 and the FDA Food Safety Modernization Act.
(iii) The company is also registered with Agricultural and Processed Food Products Export Development Authority to export such scheduled products for which it is registered. Apart from the above, Our Company is accredited with other various certifications namely, FSSAI( Food Safety and Standards Authority of India), National Programme for Organic Production(NPOP), India and the National Organic Program (NOP) technical standards (USA) and INDOCERT Organic Standard for Non – EU Country Operators.
(iv) The company is well equipped with an in-house testing laboratory to test the products. Our finished products have to undergo a quality check to ensure that they are of relevant quality as per the standards set. Our products are certified by ISO 22000: 2005, certified by UK Certification & Training Limited for a food safety management system. Our customer base is spread across the globe with presence in countries like Canada, Dubai, South Korea, Sri Lanka, United States of America. The majority of our sales are through direct exports which contributed 97.71%, 82.05%, and 67.84% respectively to our total sales for the financial year ended March 31, 2015, 2016, and 2017 respectively.
Soni Soya Products Limited IPO Stock Quote & Charts
(i) Dilip Kumar Soni, aged 40 years, is the director of our company since Incorporation and he has been designated as the Chairman and Managing Director of our company w.e.f August 02, 2017. He has completed his Bachelor of Science and Master of International Business from Devi Ahilyabai Vishwavidyalaya, Indore, Madhya Pradesh. He has an experience of around 11 years in this industry and was last designated as Vice President of Sita Shree Food Products Limited. He is the guiding force behind all corporate decisions and is responsible for the entire business operations.
(ii) Javed Ali, aged 28 years, is the director of our company since incorporation and has been appointed as the Whole Time Director of our Company w.e.f August 02, 2017.He has completed his Bachelor of Commerce from Devi Ahilyabai Vishvavidyalaya, Indore. He has an experience of around 3 years in this industry and was last designated as Executive Officer of Mahakali Foods Private Limited His scope of work includes handling the marketing and overseas operations of our company.
Capital Structure:
Authorized Share Capital
( 60,00,000 shares at FV@10)
6 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue
(33,54,961 Shares at FV@10)
3.354 cr
Present Issue
(18,00,000 Shares at FV@10)
1.8 cr
Reservation for Market Maker
( 96,000 Shares at FV@10)
9.6 lakh
Reservation for Employee
( 1,98,000 Shares at FV@10)
19.8 lakh
Net Issue to Public
(18,00,000-96000-198000= 15,06,000 Shares)
1.506 cr
QIB and HNI Quota-7,53,000
50%
Retail Quota-7,53,000
50%
Paid Up Share Capital after the issue
5.154 cr
Financials of Soni Soya Products Limited IPO:
1. Balance Sheet Snippet[ Financials as on June 2017]
(i) Shareholders’ Fund[Equity] Value
335.21 lakh
(ii) Asset
2470.25 lakh
(iii) Liability
2031.08 lakh
(iv) Debt/Equity
6.05(high)
(v) Net Worth(Asset- Liability)
335.21 lakh
(vi) RONW(PAT/Net Worth)
19%
2. Profit n Loss Snippet
(i) The Revenue of the company in last 2 years is growing at CAGR of 89.64%.[ Excellent]
(ii) The inconsistency of the PAT in the last 3 years on consistent topline is a cause of concern.
(iii)Margins(PBT/Revenue): 2.5 to 3.83% in last 2 years. The company has average margins.
(iv) Annualized EPS(post issue)= 2.46
(v) Annualized P/E(post issue)=10[reasonably priced] at the cutoff price of 25 against the Industry Average of 24.
3. Cash Flow Statement( Figures in lakhs)
Particulars
FY17
FY16
FY15
(i) Net Cash Generated from Operation
-485.48
86.95
-35.44
(ii) Net Cash Generated from Investment
-105.03
-126.79
-0.08
(iii) Net Cash Generated from Financing Activity
579
53.8
51.94
(iv) Total[ (i)+(ii)+(iii) ]
-11.51
13.96
16.42
(v) Cash and Cash Equivalents at the Beginning of the Year
30.39
16.42
0
(vi) Cash and Cash Equivalents at the end of the Year
18.88
30.38
16.42
*NOTE
1. Cash flow of a company is a key indicator to show the extent of cash generated from operations to meet capital expenditure, pay dividends, repay loans and make new investments without raising finance from external resources.
2. The Company has negative cash flows from its investing and operating activities in the past years. Sustained negative cash flow could impact the growth and business in future.
Comparison With Peers:
Name of the Company
FV
EPS
PE
RONW
Ruchi Soya Industries Limited
2
-45.79
NA
123%
LT Foods Limited
1
1.13
61
8.31%
Kriti Nutrients Limited
2
1.54
17.37
10.56%
Gokul Agro Resources Limited
1
1.26
26.51
16.45%
Shanti Overseas (India) Limited
10
10.52
3.66
75%
Sanwaria Consumer Limited
1
1.23
14.8
10.67%
Soni Soya Products
10
2.46
10
19%
Recommendation on Soni Soya Products Limited IPO:
The Company valuation looks reasonable and going by the track record of Pantomath this might give good listing gains.
Rating: 4/10.
1-5: Fair
5-7: Good
7-10: Excellent
