Sumit Woods Limited IPO

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(i) Sumit Woods Limited was incorporated on January 09, 1997 in Goa, Daman, and Diu at Panaji, Goa. Sumit Woods Limited engaged in the construction and development activity for the last 21 years and along with its group companies, they have constructed more than 50 residential and commercial projects in Mumbai, Thane, and Goa. They have handed over more than 4500 units since its incorporation.

(ii) They started off the business under a partnership firm namely, “M/s Sumit Constructions” to carry on the business of Civil contractors and executed projects for Modern Bread, Railway Officers, and Government Holiday Homes. Due to expansion and growth of construction activities in the market, in 1997, Mr. Mitaram Jangid and Mr. Subodh Nemlekar incorporated the company (Original Promoters) with the object of acquiring land, carrying out construction work, developing and organizing of immovable properties etc.

(iii) The Company’s first project was Kandivali Mitnayan Co-Op Housing Society with a built-up area of 26000 Sqft. which was completed in the year 2004. The Company has thereafter completed 19 projects to date. During the period 2012-17, the main business activities were the redevelopment of Old Buildings, (CESS Building Redevelopment / MHADA Redevelopment), and residential projects in Mumbai and in the state of Goa.

(iv) Following are the details of the ongoing projects of Sumit Woods

1. Sumit-Greendale NX, [Global City, Virar, Thane, Residential]
2. Span Trident, [Bhayander, Mumbai, Residential]
3. Sumit Proxima, [Borivali, Mumbai, Residential]
4. Sumit Garden Grove, [Borivali, Mumbai, Residential]
5. Saiprasad, [Vile Parle, Mumbai, Residential]
6. Sumit Lata, [Sion, Mumbai, Residential]
7. Sumit Province II, [Goa, India, Residential]
8. Sumit Bells, [Plot C, Nuvem, Goa, Residential]
9. Sumit Mount, [Bldg No.3, Goa, India, Residential]

(v) The Company in the past has received a lot of Awards and Recognitions for their projects:

Sumit Woods Limited IPO Stock Quote & Charts

43.00

0.00%

  • Open: 45.00
  • High - Low: 46.80 - 43.00
  • Previous Close: 43.00
  • Total Traded Volume: 12000
  • Updated On: 14-Nov-2018

Objects of the Sumit Woods Limited IPO:

Objective of Sumit Woods Limited IPO are: (i) To meet the fund requirements for execution of our Ongoing and forthcoming Projects and other working capital requirements. (ii) To repay/prepay the secured loans. (iii) To provide funds to meet General Corporate Purpose. (iv) To meet Public Issue Expenses.

Sumit Woods Limited IPO Details:

Open Date: Aug 29 2018
Close Date: Aug 31 2018
Total Shares: 4,053,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Lot Size: 3000 Shares
Issue Price: ₹ 43-45 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 10 2018

Promoters And Management:

Promoters of Sumit Woods Limited Company are: 1. Mr. Mitaram Jangid 2. Mr. Subodh Nemlekar 3. Mr. Bhushan Nemlekar 4. Mrs. Sharda M. Jangid 5. Mrs. Kavita B. Nemlekar

Company Business:

 Description of the Business Process The company follows a particular process for the development of real estate projects. They prepare the layout of the building in consultation with the architects, make an arrangement to get all the approvals required for the project, carry out all the activities required for the construction and development of the project and after the completion of the development process they sell off the project. (a) Land Acquisition 1. Identification and Evaluation of Potential Location. 2. Regional Demographics. 3. Title Search Report. 4. Negotiation with the Landowners Planning. (b) Design and Approval 1. Planning and Conceptualisation. 2. Preparation of the Plan. 3. Obtaining the statutory approvals. (c) Project Execution 1. Identification of Contractors for Execution. 2. Project Supervision. (d) Sales and Marketing 1. Through Company Executives

Capital Structure:

(i) Authorized Share Capital (1,70,00,000 Equity shares at FV=10) 17 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (1,12,40,522  Equity Shares at FV=10) 11.240 Cr
(iii) Present Issue ( 40,53,000 Equity Shares at FV=10) 4.053 Cr
(iv) Reservation for Market Maker (2,19,000 Shares at FV=10) 21.9 Lacs
(v) Reservation for QIB (1,91,7000 Equity Shares at FV=10) 50%
(vi) Reservation for HNI  (5,75,100 Equity Shares at FV=10) 15%
(vii) Reservation for Retail (13,41,900 Equity Shares at FV=10) 35%
(viii) Paid Up Share Capital after the issue 15.293 Cr

Financials of Sumit Woods Limited IPO:

1. Assets and Liabilities Key Parameters
Year Asset(lacs) Liabilities(lacs) Net Worth(lacs) Book Value D/E (<2) RONW Receiveable days
FY14 12,462.99 9,037.24 3,425.75 44.13 2.64 8% 101
FY15 12,614.62 9,103.10 3,511.52 45.24 2.59 2% 92
FY16 13,512.35 9,912.53 3,599.82 46.37 2.75 2% 101
FY17 12,243.12 8,217.46 4,025.66 51.71 2.04 8% 125
FY18 11,750.88 6,800.64 4,950.24 45.66 1.37 16% 93
Post Issue 6,954.09 45.47 0.978 11%
2. Profit n Loss Key Parameters
Year Revenue(lacs) PAT(lacs) EBITDA Margins Profit Margins Outstanding Shares(lacs) EPS
FY14 1,973.60 271.52 64.0% 13.8% 77.625 3.50
FY15 2,951.42 85.35 37.0% 2.9% 77.625 1.10
FY16 2,961.14 74.98 29.0% 2.5% 77.625 0.97
FY17 4,697.31 313.26 24.0% 6.7% 77.846 4.02
FY18 3,433.13 774.53 49.0% 22.6% 108.405 7.14
Post Issue 152.935 5.06
3. Cash Flow Statement(all figures in lacs)
Particulars FY18 FY17 FY16 FY15 FY14
(i) Net Cash Generated from Operation 1,762.98 -1,167.43 2,473.21 1,081.15 -481.84
(ii) Net Cash Generated from Investment -430.14 498.91 -660.5 -205.76 -648.63
(iii) Net Cash Generated from Financing Activity -1,198.34 378.81 -1,538.50 -773.66 1,165.22
(iv) Total[ (i)+(ii)+(iii) ] 134.50 -289.71 274.21 101.73 34.75
(v) Cash and Cash Equivalents at the Beginning of the Year 161.28 450.98 176.78 75.04 40.29
(vi) Cash and Cash Equivalents at the end of the Year 295.78 161.27 450.99 176.77 75.04
Key Notes: a) The Revenue is growing at CAGR of 14.85% from FY14 to FY18. b) The PAT is growing at CAGR of 30% from FY14 to FY18. c) The Annualized EPS[ Post Issue] = 5.06 d) P/E(post issue)= 8.88 [ Reasonably Priced]. e) P/B(post issue)= 0.98 [ Reasonably Priced] f) D/E(post issue) =0.98(manageable) g) Mcap/Sales(ideally <2)= 2 on FY18 sales(Reasonable). i) The Company has manageable recieveable days of 90 in FY18 which as come down from 125 days last year. The Receivables/Sales stands at 25%.

Comparison With Peers:

Company FV Mcap(cr) Revenue(cr) PAT(cr) EPS P/E RONW Mcap/sales
Sumit Woods Limited 10 68.82 34.33 7.74 7.14 6 16.00% 2.0
Ashiana Housing Ltd 2 1535 334 38 5 30 4.96% 4.6
Arihant Superstructures Limited 10 291.2 189.25 12.57 3 23 10.69% 1.5
Source: MoneyControl and DRHP of Sumit Woods Limited Note: (i) The Financials as per FY18 is taken for the calculation. (ii) The price of shares is taken as on 24.08.2018 for Arihant and Ashiana.

Recommendation on Sumit Woods Limited IPO:

Review and Recommendation of Sumit Woods Limited IPO from our side is:6/10 [ The Valuations in term of P/ E, P/B, and M.Cap/Sales looks quite reasonable. The Company has a decent track record in last 5 years] 1-5: Fair 5-7: Good 7-10: Excellent.

Lead Manager of Sumit Woods Limited IPO:

  1. Mark Corporate Advisors Private Limited

Registrar of Sumit Woods Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Sumit Woods Limited B-1101, Express Zone, Western Express Highway, Malad (East), Mumbai–400 097 Phone No. +91 22 2874 9966/77 Fax No. +91-22-28743377 E-Mail ID: contact@sumitwoods.com Website: www.sumitwoods.com

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Bid Details of Sumit Woods Limited IPO as on
31-Aug-2018 18:30:00 IST

Category No.of shares offered No. of shares bid
1,917,000 21,315,000
1,917,000 3,261,000
219,000 219,000
4,053,000 24,795,000
QIBs Yes
QIBs+HNIs Subscription 11.12X
Retail Subscription 1.70X
Total Subscription 6.41X

Discussion on Sumit Woods Limited IPO:

    Co looking very Interesting
    Business Model Good
    Track Record Great
    Promotor Quality Superb
    Growth opportunity clearly visible
    Pricing very attractive
    Subscribing for the long term

    Good to see that the company has reserved 50% for QIBs plus company has reserved 60% of QIB Portion to Anchor Investor. If Anchor comes or not will have to see.

    Pre-Issue (P/E story as on FY18)
    (i) PAT= 7.74 Cr
    (ii) No. of Outstanding Shares= 1.08 Cr
    (iii) EPS= 7.16
    (iv) P/E= 6.28

    Post-Issue (P/E story as on FY18)
    (i) PAT= 7.74 Cr
    (ii) No. of Outstanding Shares= 1.52935 Cr
    (iii) EPS= 5.06
    (iv) P/E= 8.89
    Conclusion: Issue is reasonably priced.

    ( Debt Story as on FY18)
    (i) Long-term Debt= 40.41 cr
    (ii) Short-term Debt=6.78 Cr
    (iii) Shareholder Fund= 49 Cr
    (iv) D/E= 0.96
    (v) The long-term Debt and Short-term Debt has reduced to 40.41 Cr and 6.78 cr in FY18 as compared to 48.04 Cr and 7.38 Cr last year.

    The Sumit Woods has formed approximately 11 joint ventures with other partners, to construct residential buildings, commercial buildings at Mumbai and Goa. The capital contribution to these ventures are contributed by the respective partners in their capital ratio and Sumit Woods is required to contribute capital of 12.5% to 67% of the total capital in each venture.

    Risk- If any partner failed in their obligation, the Sumit Woods projects have to pay the due obligation which would result in losses and delay in projects.