SJS ENTERPRISES IPO

IPO Details:

Price Band: 531-542

Cutoff Price: 542

About Company:

SJS Enterprises is one of the leading players in the Indian decorative aesthetics industry in terms of revenue of FY 20 and FY 21. Company offers the widest range of aesthetics products in India. Company is a “design-to-delivery” aesthetics solutions provider with the ability to design, develop and manufacture a diverse product portfolio for a wide range of customers, primarily in the automotive and consumer appliance industries. Company supplied over 115 million parts with over 6,000 SKUs in FY 21 to around 170 customers in approximately 90 cities across 20 countries. Company differentiate themselves based on the wide range of our product portfolio, quality of the product offerings, product design and development capabilities and the strength of the relationships with customers located across various industries globally.

Competitive Strengths:

1. Leading aesthetics solution provider with an extensive suite of premium products in a growing industry.

2. Strong manufacturing capabilities supported by an established supply chain and delivery mechanism.

3. Strong innovation and product design and development capabilities.

4. Long-standing customer relationships.

5. Strong financial position and track record of financial performance.

6. Experienced and qualified management team.

Strategies:

1. Leverage market position to capitalize on favourable industry trends.

2. Focus on development and introduction of new technologies and advanced aesthetic products.

3. Increase share of business with existing customers and acquire new business.

4. Increase geographical footprint and increase exports.

5. Integrate subsidiary and enhance opportunities.

6. Expand business through strategic inorganic growth opportunities.

Financial Performance:

Revenue is almost same but the company's Net Profit and EPS is increasing. With EPS of 15.7, the company's P/E is 35.5.

Objects of the Issue:

The Net Proceeds from the Issue are proposed to be utilised in the following manner:

1. Offer for Sale

Competitors Comparison:

SJS Enterprise is in niche business and there are no listed competitors.

Company P/B is 5.2.

Grey Market Premium:

Our view: GMP of the IPO is not good. I won't subscribe to this IPO.

Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

Like and share with others too so that they can get the gist of this IPO.