Aptitude Writing Industries IPO Assessment: Ever doodled at school with a pen? What if that pen got here from an organization older than your college recollections? India’s oldest pen firm is entering into the highlight with its first-ever IPO.
The IPO will open for subscription on November 22, 2023, and shut on November 24, 2023. On this article, we are going to take a look at the Aptitude Writing Industries IPO Assessment 2023 and analyze its strengths and weaknesses. Hold studying to seek out out!
Aptitude Writing Industries IPO – About The Firm
Aptitude Writing Industries Restricted is without doubt one of the prime three gamers within the total writing devices business in India. As of FY23, the corporate has captured a market share of roughly 9% within the total writing and inventive devices business within the nation.
The corporate gives a variety of merchandise at totally different value factors to cater to a various set of shoppers, together with college students, professionals, and places of work. They manufacture and distribute writing devices, which embrace pens, stationery objects, and calculators.
Moreover, the corporate has not too long ago forayed into manufacturing a variety of houseware merchandise together with bottles, storage containers, casseroles, serving options, cleansing options and basket and paper bins, via one in every of its Subsidiaries, FWEPL.
The corporate manufactures pens and different merchandise from 11 manufacturing crops positioned in Naigaon, Maharashtra; in Valsad, Gujarat; in Daman, Union Territory of Dadra and Nagar Haveli and Daman and Diu; and in Dehradun, Uttarakhand.
About The Trade
The next are the estimates of the industries beneath which the corporate operates:
The Indian writing and inventive devices business is dominated by organized gamers and is estimated to increase at a CAGR of seven.7% to eight.4% from 2023 to 2028, with the pen phase growing at a CAGR of seven.5% to eight.5% throughout the identical interval.
The Indian metal bottle business is extremely fragmented and is anticipated to develop at a CAGR of 14% to 16% over the Monetary Years 2023 to 2028.
As of March 31, 2023, the Indian homeware business is anticipated to be round ₹400 to ₹450 billion with the kitchen home equipment phase occupying a share of 40% to 45%.
Aptitude Writing Industries IPO Assessment – Financials
If we take a look at the financials of Aptitude Writing Industries Restricted we discover that their belongings have roughly doubled from Rs.480.66 crores in March 2021 to Rs. 684.18 crores in March 2023.
Equally, its income has tripled from Rs. 310.87 crores in March 2021 to Rs. 954.29 crores in March 2023.
The online revenue of the corporate additionally exhibits a major enhance from Rs. 0.99 Crores in March 2021 to Rs. 118.1 Crores in FY23. For FY23 the web revenue margins of the corporate stood at 12.53%.
Coming to the return ratios, we are able to see that, it has an distinctive ROE of 31.24% and a RoCE of 31.17% as of FY23. This means an distinctive return on the capital invested by the shareholders and an optimum use of firm assets.
One other constructive side of the corporate is that it reported a debt-to-equity ratio of 0.26 throughout FY23. This implies the corporate majorly makes use of its personal funds to run its operations.
Key Gamers within the Market
The next picture exhibits the comparability of Aptitude Writing industries with its listed business friends.
Strengths of the Firm
- The corporate is among the many prime three gamers within the writing devices business and occupies a market share of roughly 9%.
- Based on CRISIL, the corporate has essentially the most complete product portfolio within the writing and inventive devices business.
- The corporate’s multi-tiered nationwide home gross sales and distribution community permits its merchandise to achieve a variety of shoppers and helps to make sure efficient market penetration throughout geographies.
- The corporate has ties with worldwide manufacturers within the writing devices business and is without doubt one of the largest exporters of writing and inventive devices in India.
- The corporate has launched automated and semi-automatic meeting and packing machines and endeavours to manage its manufacturing processes by growing backward integration and lowering dependence on exterior suppliers.
Weaknesses of the Firm
- The corporate is primarily depending on celebration suppliers for the provision of uncooked supplies. Any enhance in value or disruption of the uncooked supplies can have an opposed impact on the enterprise
- Any disruption within the provide of uncooked supplies from third-party suppliers can disrupt the corporate’s circulation of operations
- The corporate requires important working capital to run its operations. Failure to accumulate such capital can considerably influence the operations of the corporate.
- The corporate is dependent upon the estimate of the long-term demand for the merchandise from their prospects. An incapability to precisely forecast demand for the merchandise and handle the stock can adversely have an effect on the enterprise.
- The corporate operates in a aggressive enterprise surroundings. Competitors from present gamers and new entrants within the business might have an opposed impact on the enterprise.
Aptitude Writing Industries IPO Assessment – GMP
The shares of Aptitude Writing Industries Restricted traded at a premium of 9.38% within the gray market on November 14th, 2023. The shares tarded at Rs 35. This provides it a premium of Rs 3 per share over the cap value of Rs 32.
Aptitude Writing Industries IPO – Key IPO Data
Promoters: Mr. Khubilal Jugraj Rathod and Mr. Vimal Jugraj Rathod.
Guide Working Lead Supervisor: Nuvama Wealth Administration Restricted and Axis Capital Restricted
Registrar to the Provide: Hyperlink Intime India Non-public Restricted
The Goal of the Problem
The next are the goals of the problem:
- To arrange a brand new manufacturing facility for writing devices in District Valsad, Gujarat
- Funding the capital expenditure and dealing capital necessities of the corporate and its Subsidiaries.
- Full or partial compensation/pre-payment of sure borrowings availed by the Firm and its Subsidiaries, FWEPL and FCIPL.
- Common company functions
On this article, we seemed on the particulars of Aptitude Writing Industries IPO Assessment 2023. Given the corporate’s robust presence within the writing and inventive devices business, its increasing product segments and robust financials, it may be stated that the outlook of the corporate is favorable for the long run.
What do assume the long run holds for the corporate? Are you making use of for the IPO? Tell us within the feedback beneath.
Written By Aaron Vas
By using the inventory screener, inventory heatmap, portfolio backtesting, and inventory evaluate instrument on the Commerce Brains portal, buyers acquire entry to complete instruments that allow them to determine the very best shares additionally get up to date with inventory market information, and make well-informed funding.
Begin Your Inventory Market Journey Right now!
Need to be taught Inventory Market buying and selling and Investing? Make certain to take a look at unique Inventory Market programs by FinGrad, the educational initiative by Commerce Brains. You possibly can enroll in FREE programs and webinars obtainable on FinGrad immediately and get forward in your buying and selling profession. Be a part of now!!