Uma Exports IPO

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(i) The Company is engaged into trading and marketing of agricultural produce and commodities such as sugar, spices like dry red chillies, turmeric, coriander, cumin seeds, food grains like rice, wheat, corn, sorghum and tea, pulses and agricultural feed like soyabean meal and rice bran de-oiled cake.

(ii) Uma import lentils, faba beans, black urad dal and tur dal in India in bulk quantities. The major imports are from Canada, Australia and Burma. They are B2B traders, highly specialized in sugar and Lentils. They maintain stocks and distribute them to different institutional parties like manufacturers, exporters, etc.

(iii) The Company has developed business strategy to switch over exports/imports from one commodity to another with change in demand or inconsistency in pricing for any commodity during any season. This policy adopted by the management ensures that the Company does not pass through a lean period during the year.

(iv) With an objective of having overseas presence, the Company acquired 100% shareholding of U.E.L. International FZE, incorporated under the laws of United Arab Emirates. U.E.L. International FZE is engaged in business of trading in sugar, spices & textile.

(v) The Company is promoted by Rakesh Khemka and Sumitra Devi Khemuka. Rakesh Khemka is the guiding force behind the growth of the Company and possesses more than two decades of experience in the trading & retailing.

(vi) Financial Performance

a) The total revenues on consolidated basis for the Fiscals 2021, 2020, 2019 were ₹ 752 Crores, ₹ 810 Crores, ₹ 329 Crores respectively, and grew at a CAGR of 51.10% over such period.

b) EBITDA on consolidated basis for the Fiscals 2021, 2020, 2019 were ₹ 21 Crores, ₹ 20 Crores, ₹ 9 Crores respectively, and grew at a CAGR of 52.76% over such period.

c)  Profit after tax on consolidated basis for the Fiscals 2021, 2020, 2019 was ₹ 12 Crores, ₹ 8 Crores, ₹ 2.88 Crores  respectively, and grew at a CAGR of 105.45%.

(vii) Export data Country Wise (FY20-21) – This segment contributes 10% in revenue.

a) Sri-Lanka = 36.6%
b) Afghanistan = 32%
c) Bangladesh = 16.06%
d) China = 9%

Objects of the Uma Exports IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects: 1. Augmentation of working capital requirements and 2. General Corporate Purposes
DRHP of Uma Exports IPO
RHP of Uma Exports IPO

Uma Exports IPO Details:

Open Date: Mar 28 2022
Close Date: Mar 30 2022
Total Shares: 8823529
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 60 Cr.
Lot Size: 220 Shares
Issue Price: ₹ 65-68 Per Equity Share
Listing At: NSE,BSE
Listing Date: Apr 07 2022

Promoters And Management:

i. Madan Mohan Khemuka, aged 85 years, is the Non-Executive, Non-Independent Director of the Company. He is associated with the Company since its inception and is one of the founding members. He has created a vision for the whole organization and under his guidance and leadership, the Company has grown multifold. He holds directorships in Uma Agro Exports Private Limited, Agrocomm Trading Co. Private Limited and Primerose Dealers Private Limited. He was appointed as an Additional Director with effect from March 15, 2021 and in the Annual General Meeting dated September 1, 2021, his appointment was regularized. ii. Rakesh Khemka, aged 47 years, is the Managing Director and has been associated with the Company since the year 1994 and has an experience of over 28 years across various management roles. His expertise, skill and knowledge have elevated the organization to greater heights. He holds directorship in in Uma Agro Exports Private Limited and Agrocomm Trading Co. Private Limited. He was reappointed as the Managing Director of the Company with effect from July 07, 2021. iii. Manmohan Saraf, aged 45 years, is an Executive Director and CFO of the Company. He holds a bachelor’s degree in commerce from Calcutta University. He cleared his final examination held by the Institute of Chartered Accountant in the year 2003 and is an associate member of the Institute of Chartered Accountants of India. He got his Certificate of Practice in the year 2008 and has been the internal auditor since the past 10 years. He was appointed as the Non-Executive Director with effect from July 07, 2021 and in the Board Meeting held on August 18, 2021 he was appointed as the Executive Director and CFO of the Company. His appointment as Executive Director & CFO for a period of five years was approved by the shareholders at the AGM held on September 1, 2021

Financials of Uma Exports IPO:

Particulars (in Lakhs) Sep-21 Mar-21 Mar-20 Mar-19
Sales 52,375 75,073 80,942 32,893
Purchases 59,684 71,969 72,114 28,922
Change in Inventories -14,052 -4,654 1,621 -862
Employee Benefits Expense 78 134 175 116
Other Expenses 4,599 5,629 5,147 3,850
Operating Profit 2,066 1,995 1,885 867
OPM % 3.94% 2.66% 2.33% 2.64%
Other Income 20 130 88 44
Interest 859 465 868 518
Depreciation 5 10 12 16
Profit before tax 1,221 1,650 1,095 377
Total Tax Exps 325 431 262 88
Net Profit 897 1,218 833 289
NPM % 1.71% 1.62% 1.03% 0.88%
No. of shares 338.09 338.09 338.09 338.09
EPS in Rs 3.71 4.92 3.30 1.02

Comparison With Peers:

Name of the Company Face Value EPS PE RoNW Book Value Sales (In Lakhs) PAT (In Lakhs)
Uma Exports Limited 10 4.92 13.82 17.52% 20.57 75,073 1,218
Sakuma Exports Ltd 1 0.47 16.2 2.97% 15.3 1,32,800 1,100

Recommendation on Uma Exports IPO:

Review and Recommendation of  Uma Exports by InvestorZone is 5/10 1. Uma Exports IPO has a reasonable revenue growth in the last 3 years. However, there was a temporary fall in the revenue in 2021 due to covid-19. 2. Uma Exports is mainly into trading and marketing of agricultural produce and commodities such as sugar, spices like dry red chillies, turmeric, coriander, cumin seeds, food grains like rice, wheat, corn, sorghum and tea, pulses and agricultural feed like soyabean meal and rice bran de-oiled cake. 3. As Uma Exports is a trading company that is why OPM and NPM are very less. 4. The IPO size is very small, so chances of allotment would be tough. 5. Uma Exports IPO is priced reasonable at P/E of 18x looks reasonable priced.

Lead Manager of Uma Exports IPO:

  1. Corporate Capital Ventures Private Limited

Registrar of Uma Exports IPO:

  1. MAS Services limted

Company Address:

Uma Exports Limited Ganga Jamuna Apartment 28/1, Shakespeare Sarani, 1st Floor, Kolkata 700 017 Phone: +91 33 22811396 / 7 Email: cs@umaexports.net.in Website: http://www.umaexports.net/

Discussion on Uma Exports IPO:

4 Comments

    Uma Exports Limited IPO Revised

    Date : 28 to 30-Mar-2022
    FV : ₹10
    Price : ₹65 – ₹68
    Lot : 220 Shares
    App Amt : ₹14,960
    Size : ₹60 Cr
    Retail : 69%
    Retail Form : 27,674
    QIB : 2%
    NII : 29%

    Reply

    Uma Exports is generating good cash flow from operations. In the last 3 years they have generated close to ~16 Crores of cash from business operations. They have ~14 days receivables cycle which is ~98 days for its peer.

    Reply

    Uma Exports IPO has ROCE of 18% and ROE of 17% based on FY21 financials.

    Reply

    Valuation:

    a) Total Share Outstanding After IPO =. ~3.38 Crores

    b) PAT (FY21) = ~13 Crores

    c) EPS(FY21) = 3.84 per share

    d) P/E = 68/3.84 = 17x ( looks fully priced in as compared to Peer Sakuma Exports )

    Reply

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