(i) The company was originally incorporated as U. H. Zaveri Private Limited on August 28, 2017 under the Companies Act, 2013 vide certificate of incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Thereafter, Our Company was converted in to a public limited company pursuant to a special resolution passed by our shareholders at the EGM held on August 31,2017 and consequently name was changed to “U. H. Zaveri Limited” (UHZL) vide fresh certificate of incorporation dated September 13, 2017 issued by Registrar of Companies, Gujarat, Dadra and Nagar Havelli.
(ii) Our company has been incorporated as a gems & jewellery company. Our business operations are divided into two divisions. One division of our business operations is into wholesale and retail of jewellery and the second division is into trading of jewellery. Our company mainly sells gold jewellery and marginal percentage of our revenue is earned through silver jewelry and other kinds of jewellery and utensils. Our company does not manufacture its own jewelry and hence, the making of our jewellery is outsourced. However, the jewellery sold by us is either designed in-house or through 3-D jewellery designer or by third-party designers or we purchase ready to sell jewellery directly from manufacturers.
Promoters of U.H. Zaveri Limited Company are
(i) Mr. Hitesh M. Shah aged 40 years is the Managing Director and Promoter of our company. He has completed his Bachelors in Commerce (B.Com.) from Gujarat University. He also holds the Provisional National Trade Certificate in Data Preparation & Computer Software from Gandhinagar, Gujarat. He started his career in Jewellery line at the age of 20 Years. He was also associated as Gold Valuer with Karnavati Co-Operative Bank, Ahmedabad for approximately 1 year and with Bapunagar Mahila Co-Operative Bank, Ahmedabad and ICICI Bank, Ahmedabad for approximately 2 years. He spells out the vision and the strategic direction of our Company and oversees our Company's expansion.
(ii) Mrs. Sunitaben H. Shah aged 38 years is a Non-Executive Director and Promoter of our Company. She has completed her education from Bangalore. She joined the company since inception. She looks after the designing department of the Company. With over 8 years of Experience, she brings skills in designing the jewellery and has vast knowledge of current trends in the jewellery industry. She guides the artisans in jewellery designing as per the customer’s requirement
(iii) Mr. Mahendrakumar H. Shah, aged 63 years is an Executive Director and Promoter of our company. He has completed his Bachelors in Commerce (B.Com.) from Ahmedabad. He joined the company since inception. He started his career at Union Bank of India and is retired bank manager of Union bank of India. He has over 37 years of managerial & consulting experience in business areas. He Looks after Business Development and Management of the Company. He also coordinates with Sales Team for client management, Proposals, Estimations and for the requirements generated from customers
Capital Structure:
(i) Authorized Share Capital
( 64,00,000 shares at FV@10)
6.4 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(38,96,400 Shares at FV@10)
3.8964 Cr
(iii) Present Issue
( 22,20,000 Shares at FV@10)
2.2 Cr
(iv) Reservation for Market Maker (1,14,000 Shares at FV@10)
11.4 Lacs
(v) Net Issue to Public
(22,20,000-1,14,000= 21,06,000 Shares)
2.106 Cr
(vi) QIB & HNI Quota-10,53,000
50%
(vii) Retail Quota- 10,53,000
50%
(viii) Paid Up Share Capital after the issue
6.1164 Cr
The Average Cost of Aquisition of the Promoters:
Sr.no
Name of the promoter
No. of shares
Average cost of equity shares
1
Mr. Hitesh M. Shah
3,583,719
14.06
2
Mrs. Sunitaben H. Shah
150,960
0.2
3
Mr. Mahendrakumar H. Shah
153,000
0.2
Financials of U.H. Zaveri Limited IPO:
As the company is recently formed in the month of August 2017, so only 5 months Financials upto Jan 2018 is shown in the DRHP.
1. Balance Sheet Snippet[ Financials of 5 months as on Jan 2018]
(i) Shareholders’ Fund[Equity] Value
580.32 Lacs
(ii) Asset
892.14 Lacs
(iii) Liability
311.82 Lacs
(iv) Debt/Equity[<1 ideal]
.53(reasoanble)
(v) Net Worth[Asset- Liability]
580.32 Lacs
(vi) Current Ratio
2.82
(vi) RONW[PAT/Net Worth] or ROE
12.8%
(vii) Book Value or NAV[ Net Worth/No.of Shares]
14.9
(viii) P/B [<5 ideal]
2.4
2. Profit n Loss Snippet
(i) The Reveune of the company in the last 5 months is at 1389.35 Lacs
(ii) The PAT of the company in the last 5 months is at 1288.69 Lacs
(iii) The EBITDA Margins of the company in last 5 months is at 7%
(iv) P/B(post issue)= 1.59
(v) Not Annualized EPS= 1.92
(vi) Annualized P/E=18.75 at the cutoff price of 36
3. Cash Flows
The Closing Balance of Cash and Cash Equivalents at the end of Jan 31 2018 is 33.97 Lacs.
Comparison With Peers:
Sr.No
Name of the Company
FV
EPS
PE
RONW(%)
1
Goldiam International Limited
10
3.9
19.2
6%
2
Renaissance Jewellery Limited
10
15.4
22
7.30%
3
Uday Jewellery Limited
10
1
24.4
4
U. H. Zaveri Limited
10
1.92
18.75
12.87%
Recommendation on U.H. Zaveri Limited IPO:
Review and Recommendation of
U.H. Zaveri Limited IPO
from our side is:
The company is pretty new so financial details in detail are not available but whatever info is available in the prospectus, from that it seems that it has a reasonable P/E as compared to its peers and decent ROE of 12.87% as well.
Rating: 5/10.
1-5: Fair
5-7: Good
7-10: Excellent
.
The company have not register their jewellery designs under the Designs Act, 2000 and they may lose income if their designs are duplicated by competitors.
Avoid for me
The company have not register their jewellery designs under the Designs Act, 2000 and they may lose income if their designs are duplicated by competitors.