Shree Marutinandan Tubes IPO -Review, Valuation, Date & GMP

State	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Gujarat	4,185.66	4,560.88	4,581.52	3,502.94
Rajasthan	88.86	119.62	70.74	6.47
Karnataka	-	18.60	35.93	-
Maharashtra	-	15.69	14.32	0.09
Madhya Pradesh	-	-	11.56	3.20
Other	2.78	2.17	-	50.91
Total	4,277.30	4,716.96	4,714.07	3,563.61

 

 

 

Objective of the Issue 

The funds raised from the Fresh Issue will be allocated for the following purposes:

1. Meeting incremental working capital requirements.

2. General corporate purposes.

3. Covering expenses related to the public issue.

Promoters and Management of Shree Marutinandan Tubes Limited

Mr. Vikram Shivratan Sharma, Mr. Bharat Shivratan Sharma, and Mrs. Kusumlata Shivratan Sharma are the promoters of the company.

Pre-issue Promoter shareholding	82.00%
Post-issue Promoter shareholding	58.30%

Shree Marutinandan Tubes Limited IPO Lead Managers

• Swastik Investmart Ltd
  
  

Peer Comparison 

Following are the listed peers of the Shree Marutinandan Tubes Limited.

Name of the company	Face Value (Rs.)	EPS (Rs.)	P/E Ratio
Shree Marutinandan Tubes Limited	10.00	8.20	17.44
Swastik Tubes Limited	10.00	4.53	17.51
Hi Tech Pipes Limited	1.00	2.35	33.98
APL Apollo Tubes Limited	2.00	18.47	65.26

 

IPO's Valuations

The Shree Marutinandan IPO price is set at Rs.143 per share.

Evaluation of P/E Ratio:     

• Considering the EPS of Rs 8.20, the resulting P/E ratio is 17.44.
  
  

Dividend Policy 

The company did not distribute any dividends in the past financial years, and the likelihood of future dividend payments is contingent upon the company's earnings and financial performance.

IPO's Strengths 

• Experienced Promoter and Management Team: The company boasts a team of seasoned promoters, and its senior management possesses extensive knowledge of the steel industry.

• Quality Products:The company has established a commendable reputation for delivering reliable and high-quality products, maintaining unwavering standards.

• Diversified Product Range:With a diverse product range, the company caters to various customer requirements effectively.

• Strong Sales and Distribution Network all over india:The company's expansive sales and distribution network enables it to effectively reach a broad consumer base throughout India.

 

IPO weaknesses 

• The property utilized by the Company for its storage operations is not under its ownership.

• The demand and pricing within the steel industry are volatile, sensitive to the cyclical nature of the industries it serves.

• A substantial portion of the company's revenue is generated from the Gujarat Region.

• There was a sudden increase in the company's profit after tax in the financial year ending March 31, 2023, attributed to a significant reduction in the volume of purchases made throughout the year.

• The company need to obtain and renew certain registrations, licenses, and permits from government and regulatory authorities.

• The company operates in a High Volume-Low Margin Business.

• Operating in a highly competitive industry, the company could face adverse effects if it fails to keep pace with technical and technological developments in the industry.
  
  

 

 

IPO GMP Today  

The Latest GMP of Shree Marutinandan Tubes SME IPO is Rs.17.

Conclusion 

The company operates in pan India, boasting robust distribution networks and offering a diverse range of products tailored to meet the specific requirements and specifications of customers. Nevertheless, it operates within a competitive and volatile sector. Investors are recommended to carefully assess all factors before considering an investment in the IPO for optimal outcomes.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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