Shish Industries Ltd is coming up with their first ever public issue and the same has hit the BSE SME Exchange starting from today. This post I will try to discuss the Shish Industries IPO review and will check whether investing in this issue will be profitable for our readers.
About The Shish Industries IPO:
- Issue Opens: August 23, 2017Issue Closes: August 28, 2017
- Issue Closes: August 28, 2017Offer Price: Rs. 30 per equity share
- Offer Price: Rs. 30 per equity share
- Issue Size (Rs Crores): 4.06
- Lot Size: 4000
- Minimum Application Value: Rs. 1,20,000
- Listing Exchange: BSE SME
About The Company:
Shish Industries Ltd is the manufacturer and exporter of plastic corrugated sheets. They are operating in the same industry for more than 14 years but officially started operations of Shish Industries on FY 2015. They have patented and launching 5 Ply corrugated sheets first time in the world. They have patented this product in India. The few brand name of their products are Saffguard, Stagguard, S-Flute etc. They also have a wide network of distributors and dealers to market their products.
The 2 major promoters of the company is Mr. Satish Kumar Maniya and Mr. Rameshbhai Kakadiya who are holding almost 99% of the equity shares.
The 2 major competitors of the company is Caprihans India Limited and Tainwala Chemicals And Plastics (India) Limited. The major clients of the company is Reliance Industries, Exide Industries, Welspun India, Graphaite India Limited, BRG Group, Hindalco, Toyota Kirloskar, Timken etc.
The financial data of the company shows that a minor loss on FY 2015 followed by some minor profits on FY 2016 and FY 2017. The company in between has managed to increase their turnover consistently.
It has also noted that the EPS on FY 2017 is at 0.18 and the PE Ratio on FY 2017 is at 166.67.
The pros of the IPO is: 1) The company has a stable business model 2) The products are in high demand 3) The patented 5 Ply will be an added advantage and will boost sales. While the cons of the IPO is at the current PE and comparing the industry PE the issue looks fully priced. Hence our Shish Industries IPO review has a NEUTRAL view on this issue.