Slideshow

Cheap Web Hosting Sites

Social Icons

'

Tuesday, October 4, 2016

Endurance Technologies Ltd. (ETL) IPO at a glance


Issue Highlights

Issue Period
5/10/16-7/10/16
Price Band (Rs.)
467-472
Issue Size(shares)
2,46,13,024
Issue Size (Rs. crore) #
1161.73
Issue Type
100% Book built
Face Value (Rs.)
10
Listing
BSE,NSE
Industry
Auto ancillary
Registrar
Link Intime
Minimum Bid Quantity
30 shares
Maximum Retail Subscription
Rs. 1,98,240
BRLM
Axis Capital, Citigroup global
# derived figure

Issue Details


Offer for Sale:  2,46,13,024 shares/ Rs. 1161.73 crore by promoter Anurag Jain and Actis components & system investments
Fresh Issue:   Nil
Equity Shares Outstanding Prior to the Issue : 14,06,62,848
Equity Shares Outstanding After The Issue :  14,06,62,848

Objects of the Issue

This issue being a pure offer for sale, the company shall not be receiving any proceeds from this issue. This issue shall provide listing benefits to the company.

Company Profile

In terms of revenue, ETL is the largest 2-wheeler and 3-wheeler automotive component manufacturer in India. For most of its  products, ETL is the tier 1 supplier to OEMs (Original Equipment Manufacturer). ETL is a complete solution provider company providing services from the conception to end-user delivery. The company derives around 70 % of its revenue from India and the rest 30 % comes from its European manufacturing units situated in Italy and Germany.
Besides this, ETL also makes specified components for  4-wheelers, LCVs and HCVs.
Segment wise Production breakup
The company predominantly makes aluminum alloy wheels for motor-bikes, shock absorbers and forks for , CVT systems and brake systems besides providing aftermarket services to cater the replacement market.

With Bajaj Auto Limited being its largest customer a few reputed names like Royal Enfield, Honda, M&M, Tata Motors, Fiat India  and Yamaha are present on its client list.




Strengths:

      (1)    It’s aftermarket  services-which being a promising segment with higher margins-revenue is growing at a CAGR of 17.6 %
     (2)    ETL is the market leader  in India in selected product segments
     (3)    It has 18 strategically placed manufacturing units in India
     (4)    The company gives a strong emphasis on R&D
     (5)    ETL has 25 plants across India, Italy and Germany

Risks & Threats

     (1)    Around 62 % of the revenue comes from the top 3 customers with Bajaj auto contributing around 42 % of the revenue and such a client  concentration could affect the profitability in case of one more client parting its ways or not performing well
     (2)    The company’s performance is directly related to the overall wellness of the Indian and European automotive sector and any slump, recession or fuel crisis like situation shall not augur good for the company
     (3)    Brexit might be impacting of its profitability


Financial Profile #

Parameter
FY 16 Value
PE Multiple
22.82
PEGProfit (4 year)
1.86
Net Profit Margin (%)
5.55
EV/EBITDA
11.7
M-Cap/Sales
1.27
ROE (%)
20.01
ROCE (%)
23.91
TIE
9.9
AR Collection Period
39 days
Price to Book value
4.57
# using upper end of the price-band

Comparison with the listed Peers #


PEGProfit
NPM (%)
ROCE(%)
ROE(%)
PE
EV/EBITDA
Endurance Tech
1.86
5.5
23.91
20.01
22.82
11.7
Bharat Forge
1.74
16.28
13.18
19.25
31.32
15.48
Motherson Sumi
4.31
13.4
26.54
29.33
31.94
30.49
Munjal Showa
NM
4.07
13.21
13.5
14.16
5.56

# moneycontrol data




0 Comments:

Post a Comment

ShareThis

Related Posts Plugin for WordPress, Blogger...