Sunrise Efficient Marketing Limited IPO

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i. Mr. Lejas Hemantrai Desai, the promoter of Sunrise Efficient Marketing Limited started his journey in the year 2002, as a sole proprietorship concern named as “Sunrise Marketing & Services” which was into the business of selling lighting products of Asian Electronics Limited as Authorized Dealers (Agents) for their Energy Saving Lighting Products like T-5 Tube lights, highway and streetlights etc.

ii. In 2011, the compnay diversified into Consumer Goods (FMCG Division) and acted as distribution for Pepsico for 40% of Geography in Surat. Since its inception in 2002, Sunrise Marketing & Services diversified into other product categories like:
– Industrial Oils – Gulf Oil Lubricants India Ltd,
– VF Drives – Yaskawa (the Japanese giant brand) VF Drives,
– Geal Boxes – Redicon Power, Elecon
– Pumps (Domestic, Agriculture and Industrial Series)

iii. The Company is in the distribution business of Automation, Drive, Gear Box, Motors, Pumps, Oils and FMCG Products and aids to manage complete supply chain right from the manufacturers and end user. Currently, they are authorized dealer of 138 manufacturers.

iv. The Company has started selling of motors under its own brand “Synchro Plus”

Competitive Strengths:

i. Large & Diverse Product Portfolio.
ii. Established relationships with institutional customers.
iii. Quality Assurance and Control.
iv. Experienced Promoter and skilled workforce.

Objects of the Sunrise Efficient Marketing Limited IPO:

The Company proposes to utilize the Net Proceeds from the issue towards the following objects: 1. Meeting incremental working capital requirements; and 2. General corporate purposes
DRHP of Sunrise Efficient Marketing Limited IPO

Sunrise Efficient Marketing Limited IPO Details:

Open Date: Mar 30 2022
Close Date: Apr 05 2022
Total Shares: 1,380,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 16.7 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 121 Per Equity Share
Listing At: BSE SME
Listing Date: Apr 13 2022

Promoters And Management:

i. HEMANTRAI THAKORDAS DESAI is the Chairman and Whole-Time Director of the Company. He has been associated with the Company since its incorporation in July 2020 as a Director. He has over 30 years of experience in the FMCG industry. He holds a bachelor’s degree of Arts from the Sardar Patel University, Gujarat. Currently, he is looking after the FMCG division of the Company. ii. LEJAS HEMANTRAI DESAI is the Managing Director of the Company. He is the Founder and Promoter of the  Company. He holds a Diploma in Electrical Engineering from Technical Examinations Board, Gujarat, Gandhinagar. He was previously associated with Sunrise Marketing And Services, his proprietorship concern. Currently, he is looking after overall management of the Company, particularly all business and strategic matters. iii. MITALIBEN LEJAS DESAI is the Joint Managing Director of the Company. She has been associated with the Company since its incorporation in July 2020 as a Director. She holds a Diploma in Metallurgy Engineering from Technical Examinations Board, Gujarat, Gandhinagar and Post Graduate Diploma in Marketing Management from Government Polytechnic for Girls, Surat. She was previously associated as Admin Head with Sunrise Marketing And Services. Currently, she is looking after overall back-office operations of the Company.

Financials of Sunrise Efficient Marketing Limited IPO:

Particulars (in Lakhs) Sep-21 Mar-21
Sales 2,999 2,614
Cost of Materials Consumed 2,409 2,421
Employee Benefits Expense 84 76
Other Expenses 58 63
Operating Profit 448 54
OPM % 14.94% 2.07%
Other Income 8 5
Interest 36 31
Depreciation 2 1
Profit before tax 417 25
Total Tax Exps 106 8
Net Profit 312 18
NPM % 10.40% 0.69%
No. of shares 50 50

Comparison With Peers:

There are no listed companies in India that engage in a business similar to that of the Company

Recommendation on Sunrise Efficient Marketing Limited IPO:

Review and Recommendation of  Sunrise Efficient Marketing Limited IPO by InvestorZone is 2/10 1.  Only two years financials are available for study which makes its risky bet. 2. Profit in Fy21 rises suddenly to 3.12 Crores from 18 lac which looks fishy. 3. P/E of <10x looks undervalued based on FY22 number but if you take Fy21 numbers the P/E is above 300x.

Lead Manager of Sunrise Efficient Marketing Limited IPO:

  1. Fedex Securities Limited

Registrar of Sunrise Efficient Marketing Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Sunrise Efficient Marketing Limited Sub Plot No. 2, block B, Akash Bhumi Complex, Village Surat, 394221 Phone: +91 99250 43408 Email: lejas@sunriseefficientmarketing.net Website: https://sunriseefficientmarketing.com/

Discussion on Sunrise Efficient Marketing Limited IPO:

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