SME IPO Analysis - Sharp Chucks and Machines
#SharpChucksIPO #IPO #SMEIPO #IPOAnalysis
Like and retweet for maximum reach!!
#SharpChucksIPO #IPO #SMEIPO #IPOAnalysis
Like and retweet for maximum reach!!
1. COMPANY OVERVIEW
🔩The company started their manufacturing operations in 1994 at Jalandhar. They initially started with the manufacturing of sub-machine tool accessories like lathe chucks. The company caters to both the Indian and Foreign market.
🔩The company started their manufacturing operations in 1994 at Jalandhar. They initially started with the manufacturing of sub-machine tool accessories like lathe chucks. The company caters to both the Indian and Foreign market.
2. BUSINESS AND PRODUCTS
🔩The company is into the manufacturing of products which belong to the following categories:
a) Casting
b) Forging
c) Machining
🔩The products manufactured by the company under each of these categories are as shown:
🔩The company is into the manufacturing of products which belong to the following categories:
a) Casting
b) Forging
c) Machining
🔩The products manufactured by the company under each of these categories are as shown:
🔩The key product category for the company is casting. The top clients of the company for their casting products are Mahindra and Mahindra Ltd, Swaraj Engines Ltd, Sonalika Tractors Ltd and Escorts Kubota Ltd. The company also supplies some of their products to
ordnance factories and railways. The company mostly exports forging and DIY tools to players in the US and European markets.
🔩The company participates in product exhibitions at the national and international level to acquire their customers. The contribution from top 5 customers of the company is as shown:
🔩The product-wise revenue split and the split between domestic and export market is as shown:
3. MANUFACTURING FACILITIES
🔩The company has 2 manufacturing units at Jalandhar, Punjab. As mentioned earlier, the company manufactures products in categories such as casting, forging and machining.
🔩The company has 2 manufacturing units at Jalandhar, Punjab. As mentioned earlier, the company manufactures products in categories such as casting, forging and machining.
🔩These products are made as per the design specifications specified by the clients of the company. The raw materials used by the company are CI boring, MS iron, pig iron and round / flat iron to manufacture their products. The raw materials are procured locally.
🔩The casting and forging process followed by the company is as shown:
🔩The installed capacities and capacity utilizations for all the units of the company are as shown:
4. COMPETITIVE ADVANTAGE
🔩The company has all facilities of design, molding and manufacturing in one room. Some of the top customers of the company like Sonalika Tractors Ltd and Swaraj Engines Ltd are within 200 KM radius of the factory of the company.
🔩The company has all facilities of design, molding and manufacturing in one room. Some of the top customers of the company like Sonalika Tractors Ltd and Swaraj Engines Ltd are within 200 KM radius of the factory of the company.
🔩This results in cost savings for the company’s clients in terms of logistics as they can procure casting products from the company nearby instead of the company’s competitors in the south.
5. GROWTH DRIVERS FOR THE COMPANY
🔩The company is planning to target both the defense and railway sectors due to the push given by the Government.
🔩The company is planning to target both the defense and railway sectors due to the push given by the Government.
🔩The company right now has an order book of more than ₹1000 crore which will be executed mostly in the next 3-4 years. The current topline of the company as of FY23 is ₹174 crore.
🔩The company plans to increase capacity utilization in all of their manufacturing units instead of doing any additional capex as of now.
Loading suggestions...