Analysis of Upcoming IPO - Sadhav Shipping Limited

Analysis of Upcoming IPO - Sadhav Shipping Limited
Analysis of Upcoming IPO - Sadhav Shipping Limited

by Tanushree Jaiswal Last Updated: Feb 22, 2024 - 11:17 am 557 Views
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Are you looking for insights into the latest IPO trends? In this comprehensive guide, we'll explore the best strategies for evaluating new IPOs & uncovering top opportunities in the market.

About Sadhav Shipping IPO

Sadhav Shipping Limited was established in 1996 & is responsible for managing maritime assets for port operations, coastal logistics & other port-related activities. Formerly, Homa Offshore & Shipping Company Private Limited was name of business.

This upcoming IPO has barges that are used for lightering/transporting products on interior & coastal waterways. Business provides high-speed security boats for patrol services in addition to operating & managing port watercraft.

Sadhav Shipping has three Business Divisions

Sadhav Shipping Limited Financials

Analysing Financial Performance: Top Metrics for IPO Evaluation 

Assets
1. Key Factors to Consider Before Investing in New IPO is the Assets growth of company, as of Sep 30, 2023, company's total assets stand at ₹ 13,113 lakh, showing steady growth compared to previous periods.
 2. Increase in assets indicates potential expansion & investment activities undertaken by company over six-month period.

Revenue
1. Revenue for six-month period ending Sep 30, 2023, is ₹ 3,386 lakh, which is lower compared to revenue for previous full fiscal year.
 2. This decline in revenue could be attributed to seasonal factors, market conditions,/specific challenges faced by company during period.

Profit After Tax (PAT)
1. Sadhav’s Profit After Tax for six-month period is ₹ 407 lakh, which is lower than PAT for previous full fiscal year.
2. Despite lower revenue, company has managed to maintain profitability, albeit at reduced level, indicating efficient cost management/other mitigating factors.

Net Worth
1. Sadhav Shipping’s Net Worth of company as of Sep 30, 2023, is ₹ 4,501 lakh, showing consistent increase over previous periods.
2. This suggests that company has been able to generate positive returns & build shareholder value over six-month period.

Reserves & Surplus
1. Upcoming IPO’s Reserves & Surplus have also seen steady increase, reaching ₹ 4,206 lakh by Sept 30, 2023.
2. This indicates that company has retained earnings & accumulated surplus funds, which can be utilized for future investments/to strengthen financial position.

Total Borrowing
1. Sadhav Shipping’s Borrowing has increased to ₹ 6,682 lakh by Sep 30, 2023, compared to previous periods.
2. Higher borrowing may suggest that company has taken on additional debt to finance its operations/expansion plans during six-month period.

Overall New IPO trend is consistency in Finance performances, while certain metrics like assets, net worth, & reserves show positive growth trends, decline in revenue & profit after tax, along with increased borrowing, indicate some challenges/adjustments made by company during six-month period ending Sept 30, 2023.

Sadhav Shipping Ltd. Key Performance Indicator
 

Analysis & Interpretations 

Return on Equity (ROE)
1. Best IPO ingredient is constant increase in ROE, In FY23, ROE significantly increased to 20.4% from 9.0% in FY22, indicating substantial improvement in generating profits with shareholders' investments.
2. This suggests that company efficiently utilized its equity to generate earnings for shareholders, reflecting better financial performance & management effectiveness.

Return on Capital Employed (ROCE)
1. IPO’s ROCE for FY23 is 14.4%, showing moderate increase compared to FY22 (11.8%).
2. While increase indicates improved capital utilization efficiency, it's essential to ensure that ROCE continues to grow to signify sustained profitability & effective capital allocation.

EBITDA Margin (%)
1. Upcoming IPO’s EBITDA Margin improved to 21.5% in FY23 from 17.3% in FY22, indicating enhanced operational efficiency & profitability.
2. Higher EBITDA Margin suggests that company has effectively controlled its operating expenses relative to its revenue, resulting in improved profitability.

PAT Margin (%)
1. In FY23, PAT Margin increased to 10% compared to 4.3% in FY22, reflecting significant improvement in bottom-line profitability.
2. This indicates that company effectively managed its costs & expenses, resulting in higher profitability at net income level.

Sadhav Shipping IPO Promoter Holding  

1. Mr. Kamal Kant Biswanath Choudhury, 
2. Mrs Sadhana Choudhury, 
3. Mr. Vedant Kamal Kant Choudhury, 
4. Mr. Subhas Chandra Choudhury 

Share Holding Pre Issue 96.44%
Share Holding Post Issue 69.44%

Conclusion

Staying informed about latest IPO trends can help investors identify best opportunities in market. Keep eye out for upcoming IPOs & leverage the insights shared in this guide to make informed investment decisions.
Overall, analysis of these finance metrics suggests that company has shown notable improvements in profitability, operational efficiency, & capital utilization in FY23 compared to previous fiscal years. These positive trends indicate effective financial management & strategic decision-making, contributing to enhanced shareholder value & overall financial performance.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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