Did you know: The market size for:
- LED Lighting,
- Fans
- Small appliances
- Fractional horsepower motors
is expected to grow at 29% CAGR π
Elin Electronics Ltd (Elin), a company operating in this industry, is coming with its IPO.
Apply or Avoid? A shortπ§΅π
1/n
- LED Lighting,
- Fans
- Small appliances
- Fractional horsepower motors
is expected to grow at 29% CAGR π
Elin Electronics Ltd (Elin), a company operating in this industry, is coming with its IPO.
Apply or Avoid? A shortπ§΅π
1/n
2/n
About Elin:
Elin is in the Electronics Manufacturing Services (EMS) industry
It manufactures: (sales mix in %):
- LED Lighting, Fans, switches etc (30%)
- Irons, toasters, dryers etc (23%)
- Fractional Horsepower Motors used in AC, chimneys etc (22%)
for OEM brands.
About Elin:
Elin is in the Electronics Manufacturing Services (EMS) industry
It manufactures: (sales mix in %):
- LED Lighting, Fans, switches etc (30%)
- Irons, toasters, dryers etc (23%)
- Fractional Horsepower Motors used in AC, chimneys etc (22%)
for OEM brands.
3/n
Elin operates both in the OEM and ODM model
- OEM: Elin manufactures products based on designs developed by its clients
- ODM (~10% of sales): Works from conceptualization to designing products
It works for leading brands like Eveready, Philips, Bosch, Panasonic, etc.
Elin operates both in the OEM and ODM model
- OEM: Elin manufactures products based on designs developed by its clients
- ODM (~10% of sales): Works from conceptualization to designing products
It works for leading brands like Eveready, Philips, Bosch, Panasonic, etc.
4/n
Industry Overview:
EMS industry supports its clients from product designing to system integration.
While global EMS industry is expected to grow by 4.5% from CY20-25, the market for areas where Elin operates is expected to grow at 30%
Range of services by EMS industryπ
Industry Overview:
EMS industry supports its clients from product designing to system integration.
While global EMS industry is expected to grow by 4.5% from CY20-25, the market for areas where Elin operates is expected to grow at 30%
Range of services by EMS industryπ
5/n
Promoters:
πΆ Elin is run by Sethia family with head office in Ghaziabad (UP)
πΆ Co got incorporated in 1982 and ever since, the Sethia family has been running it
πΆ As on RHP filing date, promoter & group hold 54% in Elin (post listing: 36.4%)
Promoters:
πΆ Elin is run by Sethia family with head office in Ghaziabad (UP)
πΆ Co got incorporated in 1982 and ever since, the Sethia family has been running it
πΆ As on RHP filing date, promoter & group hold 54% in Elin (post listing: 36.4%)
6/n
Financial Performance (FY20-22) in % CAGR growth:
π Revenue - 18%
π EBITDA - 19%
π PAT - 19%
Range of Profitability / Return ratios over 2 years:
πΆ EBITDA Margins: 7.1% - 7.7%
πΆ PAT Margins: 3.5% - 4.05%
πΆ ROE (%): 12.1% - 13.3%
πΆ ROCE (%): 14.9% - 15.8%
Financial Performance (FY20-22) in % CAGR growth:
π Revenue - 18%
π EBITDA - 19%
π PAT - 19%
Range of Profitability / Return ratios over 2 years:
πΆ EBITDA Margins: 7.1% - 7.7%
πΆ PAT Margins: 3.5% - 4.05%
πΆ ROE (%): 12.1% - 13.3%
πΆ ROCE (%): 14.9% - 15.8%
7/n
Key risks:
πΆ High Customer Concentration: Top 5 clients had ~63% revenue share in FY22
πΆ Highly Competitive Industry: Competitors may have superior technical capabilities. Increased competition can erode pricing power & profit margin
πΆ Fluctuations in Raw Material Cost
Key risks:
πΆ High Customer Concentration: Top 5 clients had ~63% revenue share in FY22
πΆ Highly Competitive Industry: Competitors may have superior technical capabilities. Increased competition can erode pricing power & profit margin
πΆ Fluctuations in Raw Material Cost
8/n
IPO Size* and Usage of proceeds
Total IPO Size: βΉ475 Cr
Offer For Sale: βΉ 300 Cr
Fresh Issue: βΉ175 Cr
Fresh issue will be used as below:
1. Debt Repayment: βΉ88 Cr
2. Capex of existing plants: βΉ38 Cr
3. Bal. for General Corporate Purposes
*Based on upper price band
IPO Size* and Usage of proceeds
Total IPO Size: βΉ475 Cr
Offer For Sale: βΉ 300 Cr
Fresh Issue: βΉ175 Cr
Fresh issue will be used as below:
1. Debt Repayment: βΉ88 Cr
2. Capex of existing plants: βΉ38 Cr
3. Bal. for General Corporate Purposes
*Based on upper price band
9/n
Valuations:
The table below gives a synopsis of:
πΆ ROCE (FY22),
πΆ 2 Year Sales Growth (FY20-22) and
πΆ PE Ratio (TTM)
for Elin and its competitors.
Our recommendation is given towards the end.
Valuations:
The table below gives a synopsis of:
πΆ ROCE (FY22),
πΆ 2 Year Sales Growth (FY20-22) and
πΆ PE Ratio (TTM)
for Elin and its competitors.
Our recommendation is given towards the end.
10/n
IPO - Key Dates:
πΆ Subscription Open: 20th Dec'22
πΆ Subscription Closure: 22nd Dec'22
πΆ Basis of Allotment: 27th Dec'22
πΆ Initiation of Refund: 28th Dec'22
πΆ Credit of Shares To Demat: 29th Dec'22
πΆ Listing Date: 30th Dec'22
IPO - Key Dates:
πΆ Subscription Open: 20th Dec'22
πΆ Subscription Closure: 22nd Dec'22
πΆ Basis of Allotment: 27th Dec'22
πΆ Initiation of Refund: 28th Dec'22
πΆ Credit of Shares To Demat: 29th Dec'22
πΆ Listing Date: 30th Dec'22
11/n
Subscription Status:
At the end of Day 2 of subscription, i.e., 21st Dec'22:
π¦ QIBs - 0.01x
π Non-Institutional Buyers - 1.29x
π Retail - 1.33x
Total - 0.95x
Recommendation
We assign SUBSCRIBE rating β to the IPO.
Do tell us if you subscribing to the issueπ
Subscription Status:
At the end of Day 2 of subscription, i.e., 21st Dec'22:
π¦ QIBs - 0.01x
π Non-Institutional Buyers - 1.29x
π Retail - 1.33x
Total - 0.95x
Recommendation
We assign SUBSCRIBE rating β to the IPO.
Do tell us if you subscribing to the issueπ
12/n
Did you find this thread helpful?
1. Retweet the first tweet of this thread:
2. Follow us (@ICICI_Direct)
3. Retweet to share this with others.
Did you find this thread helpful?
1. Retweet the first tweet of this thread:
2. Follow us (@ICICI_Direct)
3. Retweet to share this with others.
To know all about current and upcoming IPOs, click here:
icicidirect.com
#icicidirect
Disclaimer: bit.ly
icicidirect.com
#icicidirect
Disclaimer: bit.ly
Loading suggestions...