Storage Technologies & Automation Ltd IPO

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Founded in 2010, Storage Technologies & Automation Ltd specializes in the design, manufacturing, and installation of metal storage racks, automated warehouses, and a broad array of storage solutions. Their expertise spans across critical industries including oil & gas, automotive, aerospace, food & beverages, pharmaceuticals, textiles, retail, FMCG, and more, addressing their unique storage and logistical challenges.

Client-Centric Approach and Product Range

As a customer-centric enterprise, they are committed to continuous innovation and operational excellence. They provide a diverse assortment of display and storage racks for both commercial and industrial use, crafted from high-quality materials to ensure durability and strength. Their raw materials include various grades of mild steel, powder coatings, epoxy and enamel paints, and plastics, underpinning the robustness of their products.

Manufacturing Excellence

Their operations integrate product design, manufacturing, quality assurance, packaging, storage, and delivery, managed by a seasoned team of quality controllers. This integrated approach ensures excellence and meets the evolving needs of their clients, solidifying their position as a leader in the market.

Leadership and Vision

The visionary leadership of their founders, Mr. Mohammed Arif and Mr. Khasim Sait, each boasting over 13 years of industry experience, drives their company forward. Their profound knowledge and strategic foresight continue to infuse their operations with innovation and integrity.

Commitment to Excellence

Storage Technologies & Automation Ltd remains dedicated to enhancing their service portfolio and embracing opportunities that align with their core values of integrity, innovation, and customer focus. They are relentless in their pursuit to offer economically viable and superior solutions that not only meet but exceed our clients’ needs.

Objects of the Storage Technologies & Automation Ltd IPO:

The company intend to utilize the proceeds of the Issue to meet the following objects: - i. To meet Working Capital requirements ii. General Corporate Purpose
DRHP of Storage Technologies & Automation Ltd IPO
RHP of Storage Technologies & Automation Ltd IPO

Storage Technologies & Automation Ltd IPO Details:

Open Date: Apr 30 2024
Close Date: May 03 2024
Total Shares: 3,840,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 29.95 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 73 - 78 Per Equity Share
Listing At: BSE SME
Listing Date: May 08 2024

Promoters And Management:

Mr. Mohammad Arif Abdul Gaffar Dor aged 38 years is Promoter of the company as well as Whole-time Director and Managing Director of the Company. He has completed his Bachelor of Engineering from Visveswaraiah Technological University, Belgaum. He is having more than 13 Years of experience in the field of New Product Development of racking system and manufacturing of racking and shelving System. He was originally appointed as Executive Director of the on March 19, 2010. Further, he is reappointed as Whole time Director and Managing Director of the Company for the period of 3 (Three) years w.e.f. November 01, 2023. Mr. Khasim Sait aged 66 years is Promoter of the company as well as Whole-time Director of the Company. He has completed his National Apprenticeship Certificate from National Council for Training in Vocational Trades, Certificate from Department of Employment and Training. He is having more than 13 Years of experience in the field of manufacturing of racking and shelving system and machine maintenance. He was appointed as Director of the company on March 19, 2010. Further, he is reappointed as Whole Time Director of the Company for the period of 3 (Three) years w.e.f. November 01, 2023. Mr. Nuumaan Khasim aged 36 years is Whole-time Director and Chief Financial Officer of the Company. He has completed his Bachelor of Engineering from Visveswaraiah Technological University, Belgaum. He is having more than 5 Years of experience in the field of Programmer analyst and more than 7 years of experience in the field of procurement of Steel Raw Materials and Finance . He was appointed as Executive Director of the company on June 01, 2016. Further, he is reappointed as Whole time Director and Chief Financial Officer of the Company for the period of 3 (Three) years w.e.f. November 01, 2023.

Financials of Storage Technologies & Automation Ltd IPO:

Particulars ( In Lakhs )
2021
2022
2023
7M-FY24
Revenue from Operations 4,849 6,987 8,132 5,292
Other Income 3 3 5 25
Total Revenue 4,852 6,990 8,137 5,317
Cost of material consumed 3,300 4,797 5,301 3,778
Direct Expenses 240 249 244 201
Change in Inventories -36 -10 9 -339
Employees Benefit Expenses 653 878 827 464
Other Expenses 381 801 1,289 500
EBITDA 314 275 468 713
Depreciation & Amortisation 101 211 224 118
Finance Cost 26 66 165 110
EBIT 213 64 244 595
OPM (%) 6.47% 3.94% 5.75% 13.42%
PBT 187 -2 79 485
Tax 65 19 18 127
PAT 122 -21 61 358
NPM (%) 2.51% -0.30% 0.74% 6.74%
No.of Shares 128.40 128.40 128.40 128.40
EPS 0.94 -0.16 0.47 2.79

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Storage Technologies and Automation Limited 81 0.6 0.47 165.4 78 100
Alphalogic Industries Limited 18 2 36.50 105.0 226 231
* All the data is as per FY23.

Recommendation on Storage Technologies & Automation Ltd IPO:

Review and Recommendation of Storage Technologies & Automation by team IZ is 5/10. 1. The company is a leader in the storage racking systems industry. They specialize in the design, manufacturing, and installation of metal storage racks, automated warehouses, and a variety of other storage solutions. They serve a diverse array of industries, including oil & gas, automotive components & aerospace, food & beverages, pharmaceuticals, textiles, retail, FMCG, and more, each with unique storage and logistical needs. 2. Facilities and Infrastructure The facilities are equipped to handle all aspects of their operations, from product designing and manufacturing to quality checking, packaging, and delivery. Their infrastructure supports a streamlined manufacturing process that utilizes various grades of materials such as Mild steel, Galvanised steel coils, PPGI coils, and high-quality powders for powder coating, among others. 3. Market Position and Competitive Strengths They operate in a highly competitive market with low entry barriers, which increases the potential for new entrants and competition from both regional unorganized manufacturers and a few organized players. Despite these challenges, Their company stands out due to their commitment to quality, competitive pricing, and timely delivery. Their current total order book value as of April 1, 2024, stands at ₹ 2136.00 Lakhs, reflecting their strong market position and the trust their clients place in them. 4. Customer Focus and Quality Commitment Being a customer-centric organization, they are dedicated to continual innovation and operational efficiency. They strive to provide economically feasible solutions that not only meet but exceed their clients' expectations. Their services are consistent throughout the year, and they are constantly looking to expand their service portfolio to better serve their clients' needs. 5. The Revenue has Increased from Rs.48 Crores in FY21 to Rs.81 Crores in FY23. 6. The EBITDA has Increased from 3 Crore in FY21 to 4 Crores in FY23. 7. The PAT has Decreased from 1 Crore in FY21 to 0.6 Crores in FY23. 8. As per FY23, CFO/EBITDA is 1.01, As per FY24, EPS is 4.78, 9. Market Capitalization is 100 Crore & P/E is 16.3x based on FY24.

Lead Manager of Storage Technologies & Automation Ltd IPO:

  1. Oneview Corporate Advisors Pvt. Ltd.

Registrar of Storage Technologies & Automation Ltd IPO:

  1. Integrated Registry Management Services Private Limited

Company Address:

Storage Technologies & Automation Ltd No 10, Survey No 21/6A 21/7A, 21/7B and 21/8 Singanayakanahalli, Yelahanka, Bangalore, Bangalore-560064, Phone: +91 98444 86300 Email: cs@racksandrollers.com Website: https://racksandrollers.com/

Discussion on Storage Technologies & Automation Ltd IPO:

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