M.V.K. Agro Food IPO Financial Analysis

M.V.K. Agro Food IPO Financial Analysis
M.V.K. Agro Food IPO Financial Analysis

by Tanushree Jaiswal Last Updated: Feb 27, 2024 - 04:19 pm 563 Views
Listen icon

M.V.K. Agro Food Product is an integrated sugar and allied products manufacturer based in Maharashtra. The company not only produces sugar but also sells by products and waste such as Molasses, Bagasse, and Pressmud. Additionally, it generates power for its own use ensuring self sufficiency in energy consumption. M.V.K. Agro Food is set to launch its IPO on 29 February 2024. Below is a summary of the company's business model, strengths, risks, and financials to assist investors in making informed decisions.

M.V.K. Agro Food IPO Overview

M.V.K. Agro Food Product Ltd established in 2018 manufactures integrated sugar and related products with a licensed crushing capacity of 2,500 TCD. It sells its by products such as Molasses and Bagasse primarily through brokers who then supply to export houses like Parle Biscuits, PepsiCo Holdings India and Britannia Industries. Additionally, the company supplies commodities to export oriented traders and star export houses like Sakuma Exports and Indian Sugar Exim Corporation. Operating on a virtually zero waste model it utilizes or sells all generated waste including for power generation.

Get more details about M.V.K. Agro Food IPO in this article.

M.V.K. Agro Food Strengths

1.    The extensive variety of products broadens the company's market potential for each product.

2.    Close and strong connections with sugarcane farmers.

3.    Financially the company shows consistent growth.

4.    M.V.K. Agro Food has its own power plant.

M.V.K. Agro Food Risk

1.    As of now, the company lacks necessary approvals for its proposed manufacturing unit. Failure to secure these permits could negatively impact its business, finances, and operations.

2.    The company has little experience making Ethanol, Bio-CNG, and fertilizers. This means it's hard to judge how well it has done or how it might do in the future in these areas.

3.    The company relies on domestic brokers and export oriented traders for a part of its revenue. Any decline in sales through these key intermediaries could negatively impact its business and financial performance.

4.    Business is affected by seasonal changes leading to fluctuations in its results.

M.V.K. Agro Food IPO Details

M.V.K. Agro Food IPO is scheduled from 29 February to 4 March 2024. The price for the IPO has been set at ₹120 per share.

Total IPO size (₹Cr) 65.88
Offer for sale (₹Cr) 0.00
Fresh issue (₹Cr) 65.88
Price band (₹) 120
Subscription dates 29 Feb 2024 to 4 March 2024

Financial Performance of M.V.K. Agro Food IPO

M.V.K. Agro Food's Profit After Tax increased steadily over the past three years from ₹140.41 Lakhs on 31 March 2021 to ₹319.81 Lakhs on 31 March 2022 and further to ₹377.45 Lakhs on 31 March 2023. This indicates consistent growth and improving financial performance.

Period 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets (₹ Crore ) 15,471.93 11,602.06 11,445.70
Revenue (₹ Crore ) 9,393.63 13,263.56 2,583.10
PAT (₹ Crore ) 377.45 319.81 140.41
Total Borrowing (₹ Crore ) 9,156.10 6,001.32 7,496.33

M.V.K. Agro Food IPO Key Ratios

M.V.K. Agro Food's Return on Equity showed positive trends over the three fiscal years FY21 recorded an ROE of 21.93% increasing to 33.31% in FY22 and then slightly decreasing to 28.22% in FY23. ROE measures the company's profitability relative to shareholders' equity indicating how effectively the company is utilizing shareholder funds to generate profits. The increasing trend suggests improved efficiency and profitability although there was a slight decline in FY23 compared to the previous year.

Particulars FY23 FY23 FY21
Sales Growth (%) -28.62% 472.27% -
PAT Margins (%) 4.05% 2.45% 6.15%
Return on Equity (%) 28.22% 33.31% 21.93%
Return on Assets (%) 2.44% 2.76% 1.23%
Asset Turnover Ratio (X) 0.60 1.13 0.20
Earnings per share (₹) 3.77 3.22 1.67

M.V.K. Agro Food IPO Vs Peers

Among its peers, M.V.K. Agro Food has the lowest EPS of 7.55 whereas Dhampur Sugar Mills has highest EPS of 23.72.

Company EPS Basic P/E(x)
M.V.K. Agro Food Product Ltd 7.55 15.9
Ugar Sugar Works Ltd. 9.16 8.85
Dwarikesh Sugar Industries Ltd 5.57 15.6
Balrampur Chini Mills Ltd. 13.94 28.78
Dhampur Sugar Mills Ltd. 23.72 10.48

Promoters of M.V.K. Agro Food IPO

1.    Marotrao Vyankatrao Kawale

2.    Sagarbai Marotrao Kawale

3.    Ganeshrao Vyankatrao Kawale

4.    Kishanrao Vyankatrao Kawale

5.    Sandip Marotrao Kawale

The promoters of the company collectively own 100% of the company's shares after the IPO their ownership will decrease to 64.56%.

Final Words

This article takes a closer look intoM.V.K. Agro Food scheduled for subscription from 29 February 2024. It suggests that potential investors thoroughly review the company's details, financials and subscription status before applying for the IPO
 

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

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.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Teerth Gopicon IPO Allotment Status

Building blocks of the Teerth Gopicon Limited Ltd IPO Teerth Gopicon IPO is a fixed price issue of Rs 44.40 crores. The issue comprises entirely a fresh offering of 40 lakh shares. Teerth Gopicon IPO commenced its subscription on April 8, 2024, and concludes today, April 10, 2024. The allotment for the Teerth Gopicon IPO is scheduled to be finalized on Friday, April 12, 2024. The IPO is set to list on NSE SME, with the tentative listing date fixed as Tuesday, April 16, 2024.

DCG Cables & Wires IPO Allotment Status

Building blocks of the DCG Cables & Wires Limited IPO DCG Cables & Wires IPO, a fixed price issue of Rs 49.99 crores, comprises an entirely fresh issue of 49.99 lakh shares. DCG Cables & Wires IPO commenced subscription on April 8, 2024, and concludes today, April 10, 2024. The allotment for DCG Cables & Wires IPO is set to be finalized on Friday, April 12, 2024.

Swing Trading Stocks: Week of 15 April 2024

Swing Trading Stocks for the Week