Amanta Healthcare, Sugs Lloyd & other September 1st Week IPOs : Apply/Avoid? Primary Market Chatter

0:00 Hey, hi everyone. Welcome to Primary Market Chatter brought to you by Sunday Investing. This is our September 1st week episode. We have a few people who are available. We have a few who are away. Yes is out in Banaras. Tay is out in Delhi. So both of them won't be joining. They are traveling. But it's Sachin Sor has joined us today again. Thank you Sor for doing that. And then we have Rohit. So four of us will be covering a few IPOs which are coming in next week. Uh the good thing is next week IPOs none of them are super big or great or like where allocation would be easy for the lot for the lack of a better term but also the markets are slightly choppy right so if it's a easier allocation the premium would also be lower because people tend to look at

0:46 premium a lot when they are applying but yeah we'll continue with our job what we'll do is we'll review the IPOs that are coming in next week and just put in a fundamental uh review of what we feel with respect to the company then we'll try and keep it tight simply because uh should be tight in terms of the space as well but before we get started again want to highlight a couple of things one we are not say be registered so none of the opinion that we say is qualified please do your own due diligence opinion financial advised opinion qualify plus we don't know your situation. So none of this is investment advice for

1:31 the lack of a better word. This is not even educational content. It's just us talking about what we feel about our IPO strategy. So please keep that in mind with respect to what you are doing. And second thing if you haven't joined the YouTube channel the link is in the pinned comments and we'll continue to do that as well. Since I'm traveling tomorrow, I'll try to put the space today tonight itself. Uh so this should be live by like 12:00 p.m. uh 12 noon uh 12 a.m. or something like that. Having said that, let me just set up the order for the day. I'm main organic about Construction and then we'll end with

2:16 Aanta Healthcare. All of them are smalish issues. Uh so there's no issue which is bigger than 150 CR. So uh allocation in good issues would be tight. But then we'll also have to see how the issues are. Having said that, let me probably just move forward and start with the first company. The first company Organics. So let me set up SNA Organics incorporated in 2017. Company operates in solvent recovery providing sustainable solutions for industries that use solvents. It collects spent solvents and uses distillation and purification technology to reuse them solvent recycling company. Recycling theme companies have been slightly hot. So

3:06 questionable in terms of how high it was but we'll come to it. uh IPO about 32 cr IPO market 124 crores so around 27 28% dilution FI25 financials about to revenue 263.3 cr or PA 7.3 C so good 30% PAT margin which is insane when you think about it so we'll have to see how sustainable that PAT margin is but uh that is about the financials uh in so just 7c at 124 CR to around 18 P if I'm not wrong 770 140 yeah 18p type business in terms of the LM the LM so not super cheap although we'll have

3:52 to see how to evaluate it or PS for it in terms of the LM the LM is fast track finac again very like for the lack of a better word Mahindra developers was the last issue so uh exercise caution is the general verdict would be when like you talk about this but yeah with that over to you Sachin to talk about and I'm assuming while I set it up but yeah sorry over to you >> uh am I audible >> y >> all right so uh you have told a lot already so I'll keep it short so uh this NA organics is based out of Telangana and they primarily started as a partnership firm in 2017 and the family

4:38 business of this Mr. current uh managing director Mr. Sai Kiran it was a trading business for this solvents and that is now transitioned into this snare organics. So they specialize in uh spent solvent. Spent solvent is what the uh solvents that these industries and all release. So what this company does is this company purifies them and then it generates a good amount of output out of them and then it supplies to the end users who can be any from paint industries to pharmaceutical industries to other agrochemical industries etc. So uh this na or acts like a mediator between these the companies producing solvents and the companies who intend to use these solvents. Uh there 50% of the production comes from uh this acetone

5:23 ethile acetate etc. And they also uh claim somehow to have over 80% of repeat orders from their customers that they are catering. They haven't named any uh good clientele but they say to cater to almost big all of the uh clients from the pharmaceutical industries uh because they are located in Hyderabad. So that is a location advantage for them to uh cater to all these pharmaceutical industries. So they do contract manufacturing which is like a more like a job work for these uh uh big pharmaceutical clients where they supply these solvents around 18 to 19 rupees per kg which is in comparison to the new solvents that these pharmaceutical clients might go into the market to buy. So they come at 85 rupees per kg while the purified one which this

6:09 provides it's at rupees 19 per kg. So that is a cost advantage for these pharmaceutical clients and the rest what they do is they also trade for this pharmaceut uh for this solvents that they release uh from these processes. So some of the revenues come from that as well. What they are trying to do is now since it is a already uh competitive market. So post RPO what they're trying to do is they will purchase from bulk these solvents purify them and since they have a good technology to maybe get the maximum output out of this uh purifying process and then they will sell it in the open market at whatever rate is there. So uh currently uh their revenue split is 60% from pharmaceuticals and 40% from all others agrochemicals specialty chemicals etc.

6:55 uh earlier they had around 80 to 85% revenues from corporate clients which is like these B2B clients and the rest from dealers. Now in IPO year especially this is transition from 50% from corporate clients and 50% from dealers. Uh no specific explanation to this when it was asked from the management uh they have already increased their capacity year on a year from internal growers and currently they are utilizing around 88%. Now coming to IPO proceeds uh 24 CR is for working capital rest 4 CR around 4CR is for repayment of borrowings and rest is general corporate purpose. So in FI23 they did around 20 CR revenues with uh 20% debita in 20 FI24 they did 24 CR with around 25% AITA. This is largely due to increase in capacity and all that

7:41 and in FI25 they did around 26.5 CR revenues with 40% AIA. So AIDA has jumped up quite significantly in IPO year which they said that we reduce some marketing expenses, we reduce some uh other expenses, some employing expenses here and there but the primary reason I see is the raw material expenses have gone down uh despite there uh being a increase in revenues which is not understandable and they did not reply to is well uh it as well. So uh this is some uh specific thing for IPO year only. So cash from operations is positive but then the more the profit they generate the cash from operations is not positive in that line. It has been positive year on year but in this year since the profit was more uh the

8:27 cash generated should have been more but it is not the case. Uh coming to the risk the modest growth seen in the recent years 10 12% yearon year is uh uh something to note also the dependence on these dealers. So dealers generally offer low margin when you supply the solvents to them. So that is one risk. Uh the director also has some group companies which are already doing similar sort of business and I do not see any compete non-compete agreement with them. Uh employee attrition is also high. It was around 25 almost around 50 to 60% in FI24 but in IPO year again it is around 25 to 26%. Also there have been frequent changes in auditors recently in the past one and one and a half year. So that is also one thing to note. So if we look at the

9:13 inflated margins, it's around 17 times trailing. But if we look at maybe FI24 basis, it's around 25 to 26 times. And for FI26, they are somehow suggesting in their working capital, they would do a 3x revenue jump and similar sort of margins. I don't know how will it come from that. But it it is what is they are saying. For the peers, they have specifically mentioned that they have no listed peers. But there are already uh many farmer companies which do this exercise inhouse. So you do not need a specific fear for them to track and the amount that and the valuations that this company is coming at if we look at from the FY24 perspective is it already seems uh high. Uh lead manager here is fast track insect. So not so good track

9:58 record as you mentioned with my Indra and Sedar etc. Also this issue does not has anchors and there is the minimum QV portion. So keep that thing in mind when anybody is assessing. Uh I saw that a GMP is running as well but it is not sustainable and we do not rely on GMP. So make what you make of it. That's all. >> Perfect. Thank you. Thank you for such uh for covering the issue and you highlighted quite a few points. The story just seems too good to be true to be able to sell at 19 rupees and still make like 30% profit margins. 40% a bit da so and 3x revenue in this year. So everything just for the lack of a better word makes you want to just understand the company a

10:46 lot more better. Uh so I would also probably try and spend some more time in order to understand the company but at least primacia are somehow not getting that confidence although I really think that this will be very heavily subscribed on the HNI and the uh retail side because GMPI and there are no other competing issues as well which kind of uh will take away subscription. The good or bad part is that people will like and again not complaining as such but yeah um it has no QIB right like just 2% QIB which would also be ignored simply because other company which is coming also has just 5% QIB so it's just a question of like somehow it has been timed very well uh so I think it would

11:31 probably do well in terms of subscription listing don't know maybe let's see what is coming out of it very different and too good to be true kind of a story I would probably be avoiding but yeah that is what our review is with respect to uh SNHA organics maybe with that and again you do your own study uh figure out what is working for you uh but if you are doing uh reading a company like that definitely uh make sure that you understand the sto story and like figure out what is the mode etc before making before taking any long-term buy it etc. And again not really advice or anything. This is what I would do for myself just understand the company if I have to kind of apply

12:17 because I feel that there will be a lot of subscriptions so people will like everyone's apply uh but yeah let's let's see with that let me move forward to the second company quickly setting up so Lloyd uh incorporated in 2009 company is a technologydriven EPC player specializing in renewable energy particularly solar as well as electrical transmission uh distribution and has now very recently moved into civil EPC as well. So another EPC player uh setting up the IPO it's a 86 cr IPO big IP all of which is a fresh issue market cap 286 crores so they are diluting like 30% of the issue uh of the company right now in terms of the financials FI25 financials revenue was 178 crores and the PAT was 17 cr so 10%

13:05 PAT margin business and they are coming at like 15p traing 15 16p traing we'll understand then in terms of the LM the LM is rather new threedimensional in capital services. So over to you Rohit to talk about so Lloyd. >> Thanks Manish. I'll also keep this one quick. Uh so yeah this is an 85 crore issue. Uh it was a bookuilt issue which meant that there were supposed to be anchors but somehow only two anchors and only 5 cr of this issue uh you know could actually be uh they could actually get anchors. So not a great start I would say. So I'll try and cover this business at the outset. I'll say that this is yet another EPC business. So there is a certain fatigue that I also personally have uh and I'm sure many

13:50 people uh in the market also probably has with this segment. So just keep that in mind when you know just applying a valuation multiple to such businesses. So what these guys do is they are a combination of solar mainly solar and electrical EPC. uh they also do a little bit of civil but I'll completely discount that that anyway gets nothing no valuation whatsoever from the market uh solar they do mainly rooftop work with the government I think it's 100% government currently uh and they do electrical EPC they do some distribution and substation work so this is not transmission EPC or the high value stuff that say the Rajesh ps and vivana pars of the world do where they do HV EP work uh and transmission work this is just the entrylevel uh electrical EP PPC

14:36 work. The one thing that these guys do have which is one I mean I tried to find a little bit more is they have a product that they sell called a fault passage indicator which looked somewhat interesting. In one of the interviews they said that this is a product that they compete only with the Schneiders of the world. Uh and they are expecting this particular business to do well this year also. Uh I I don't know too much about it. I don't know the technicalities of it but I'm just uh stating what the promoter said and I will also try and look this up uh maybe in the next couple of days. U overall from a but at at its core it looks like an EPC business well at least numerically uh they did 170 odd cr in FI25 which is over 150% growth which is

15:24 great. uh they registered I think 17 cr pat which is 63 and a half 17 which is almost 10% which is also reasonable I mean it's it's fair it's in line uh but of course the problem comes when you look at their cash flows and their balance sheet which is pretty horrible uh very high receivables very high um uh you know very very negative cash flows I think almost 40 50 cr of negative cash flow I think in one of the interviews the promoter did say that the receivables have come down since I mean this happens with with government work where billing happens in March. Uh and of course you will not get all of it. Uh and it'll take time for that to come. But yeah, it is it doesn't look good optically for anyone who just reads the RHP. Uh you're not going to look at this business and say, "Okay, this is the 50

16:10 52nd Solar DPC company that is coming. Let me look for something, you know, a reason to invest." It doesn't show up from the RSP. Definitely. Uh the one good thing they have is they have a decent order book. So in the RP they said 300 cr. Um in the uh interview and in the PPTs that is circulating we have that has come up to 420 cr. So what that means is there'll be about 120 cr of orders that will definitely come in as soon as it lists. Uh which means that there will be some people say no the printer will be working. Uh so the printer will be working in this company I think. uh uh so there'll be some news flow maybe post listing so for people who want to you know trade on that kind of stuff uh the company is coming at 17

16:56 times FI25 uh and as per their projections I think they should do 300 cr plus for this year which means they're coming at say 10x FI26 which obviously on the face of it is not bad solar EPC electrical EPC both do get higher multiples they're the only two EPC businesses today that get better multiples than this But if you just look at it objectively and Oriana as a say the poster child solar EPC has diversified into just about every other kind of renewable business there is and trades at 12 times or 13 times FI26. Uh your really high quality electrical EPC players trade at between 12 and 15 times FI26. So this company has come in at a valuation that

17:42 is reasonable. So that that is one thing to give. Question is how much appetite will there be for the market to absorb this? Well 80 - 5 so 85 - 5 is 80 cr of float that will come. So that is the question. U having said all of this see there is a valuation gap this these valuations gap gaps may or may not get filled. So you can't tell for sure. this other company current infra which just closed couple of days back very similar more solar EPC but the GMP was there therefore it got fully subscribed uh it didn't look overly different from this company this company also looks decent only overall uh so it's a I mean take a

18:28 risk if someone wants to take a risk you can consider studying this company and see how it uh goes on you know how the subscription is I personally Me personally will will will be avoiding this uh just because I'm tired of EPC businesses. But there is at least a valuation gap clearly there. And if a current infra lists well, this can also list. All right. Right. It it it's not expensive. Just a just a warning. I think there has been a graveyard of EPC players. Which company decides to go into that graveyard and which escapes it is very very hard to tell in advance. So just be warned. Uh but yeah there is there's a chance maybe with this one also it's a new LM um I think one small issue with this so what they're doing to manage this issue I am

19:14 not sure the fact that they could only get two anchors uh one of whom is uh Rajasthan Global uh and the other is Nav Capital which is still a decent fund but only two anchors is also a bit iffy so it's it's very apart from valuation it's a slightly iffy if iffy situation So uh yeah I mean I mean this to me it feels like a toss of a coin right now. So I I personally will be avoiding just because I'm done with EPC. >> You haven't add add in anything of value in terms of what I didn't know. I thought you'll be able to make the decision simpler but the problem remains. I'll tell you what I like about the business. uh when you value it forward basis uh in that interview with

20:02 Ainas Koresheka the promoter essentially mentioned that they would do 70% of 420 CR this year right and then some more business so on forward it is still like cheaper compared to let's say oranas of the world or any solar and electrical EPCs of the world as well right so it is more of a question of managing the liquidity but somehow I feel downside is protected here like it shouldn't like I don't somehow see it like listing very negative or >> huh see I I mentioned that like I think it's coming at 17 times and 10 times forward but I can very easily argue the other way also this isn't a pristine business this is a business with a very bad balance sheet and very average cash flows so there'll be a group of people

20:47 who will look at that and say no I don't want to invest in this is a business where the skill of what they do let's say what an Oriana does in solar versus what these guys do in solar is polls apart. What these guys do in electrical versus say what a Rajesh or Viviana do is not in the same league. So it is there will again be a group of people who will oh solar EPC I remember there was one chapel selling company that came as a solar EPC which got solar EPC valuations. This is not that same level obviously but there will be people who will look at it as solar VPC and give it solar EPC valuation and there will be some people who will look at the capabilities and give it a discount for its capabilities. So where it'll fall is very hard to say. And then you have the liquidity issue. And then you have a bunch of, you know, EPC players that

21:34 trade at trailing 10 10 multiples, less than 10 multiples. So it's just a very complicated scenario. So I I I don't want to stick my neck out here and say it will list well or list badly. I'm I'm just not able to tell. It's too confusing. But then if we review all issues like this which I appear to apply next the question [Laughter] >> this is yeah this is this is my view I I it it has some good things that are some bad things and therefore it is very neutral for me uh it it it is not like push it doesn't pushing me one way or the other that's a problem so I'm I would I will air on the side of caution >> understood yeah but we have a couple of our friends who have went to visit the

22:20 plant today. So maybe once we know more that's when we'll probably be able to add more color. It would be interesting to see that like to figure out how much is the technical capability of that fault protector or whatever the sh the Schneider competitor as well. So maybe over time we just get more clarity on the business as well on valuations it is cheap but again it depends on the capability uh set as well and really like how much of the receivables has been received and like the no anchors plus bad balance sheet at least in terms of RSP does make up SP picture we'll see we'll probably see this one over time uh how it is evolving but yeah that is what our review of soid was maybe with that we

23:05 can probably quickly move forward to the third company and talk about optal tech uh consulting setting up opt incorporated in 2011 company a digital technology consulting company is specializing in enterprise modernization and digital transformation solutions for the lack of a better word IT company it seems uh it has a global presence with offices in Bangalore in Texas and in New South Wales Australia uh so with that setting up the IPO it's a 52 cr IPO but IPO 52 cr all of which is a fresh issue market cap 197 crores per company so 26% dilution uh FI25 financials about to revenue New 56 crores or PAT 12 crores so 20% pat margin business

23:52 million very high pat margin business uh they are coming at like 12121 180 16p trailing 16p fi25 uh but probably still needs to be seen what is the growth prospects it in itself is somehow uh figuring out as a industry compared to because of all of these AI etc modernizations we'll figure out in terms of the LM the LM is share cap share India. So with that over to you Sachin to talk about opt consulting am I audible? >> Yep. >> All right. So uh this opt value tech is a consulting and services firm. So they have system implementation cloud solutions enterprise application

24:37 everything that you can think of in the IT ambit is under them. So it includes data automation, API management, some AI thing etc etc. So everything they have mentioned uh it is there. So what is the core expertise in all of this is this they say that they uh excel in this application integration uh through API management and cloud cloud solutions and they also have plans to enter into this video and uh image an analytics for uh drones and railways and this is the what is will be their focus going ahead and they seem to uh develop this uh in-house uh the two duo uh I think they are uh uh both both are couple um uh Mr. I forgot the name one was Mr. Ja what was the

25:26 name one minute some some Ja couple I presume if I'm correct I'll move on so uh they mentioned that they also have got some good orders recently they did not uh name the value for this uh analytics for drones and etc but they have got this and these are the new projects that they are trying to cater from their office in Bangalore for which they will use these IP proceeds so they also highlight created one CMMI level 5 certification which is like a optimum organization process uh that is built in their organization. So they yield the best outcomes for their uh organization process that is within this opty value tech. Uh current they mentioned that they have a 50 CR of order book uh which

26:11 is diversified across various sectors as uh as previously mentioned and uh 25 CR will be executable by March 26. Now uh coming to the IP proceeds around 12.7C cr they are using for development of new products. So this will include like a digital twin system which is like a replica of your any machine that you make. So what this replica does is it helps to uh assess this operational efficiency of that machine and what is the life cycle of that machine what can go wrong what can go right etc. Uh they also have built some synthetic air traffic systems for better aviation control. Uh there will also be data analytics for zone mapping, emergency event handling etc. So these are all the types of new products that are trying to develop and use the IPO proceeds. Uh they plan to also employ around 75

26:58 employees for all of these new products and this will be done over 26 and 27 both years. Uh around 6.4 CR they will use to upgrade their existing IT infrastructure from servers to machines to systems etc. uh 17C cr will be used for working capital and 1.7 cr will be used for the new Bangalore office which will cater to all these AI systems etc. Now to the financials in FY23 they did 39 CR revenues with 13% AIDA in FY24 they did 36.7 CR of revenues so revenues actually fell which was due to one uh vendor that delayed their approvals and which also uh deflected in their payment cycle. So that was the reason why revenues dipped but the margins increased uh operational efficiency was there. So 22% AIDA on that front in FY25

27:45 uh the revenues have increased to 56 around 56 cr and 29% AIDA margins with around 20% PAT. Now they're saying that this margins will sustain but then we see the balance sheet going uh totally negative on the receivables and the cash flow from operation side. So I don't think it will sustain but let's see for FY26 what they said in the meet uh management meet was that they are trying to uh do a 75 to 80 CR of revenue but what their working capital is suggesting is around 60 65 CR of revenues and the margins they said that would be maintained so maybe management expecting more orders going ahead after the IPO comes in I no uh certainty of that but that is a possibility now there is risk that 90% of the revenues is through

28:31 system integrators So they do not directly deal with the clients. So that caps their margins to some extent. Also this also for this analytics in uh railways and etc. They need approvals from the railways. So that will go some that will take some time. So that is a timeconuming process. Uh employee attrition is quite high. It has been increasing year on year. Maybe it is some some of the processes that is in the company and maybe some of it is due to the IT sector overall. uh but I do not uh know what is the reason but it is around 56 to 57%. Now coming to the pricing it's around 16 times trailing and uh whatever they are mentioning for the growth it is around 12 to 13 times forward. In the peers they have mentioned Dave info and one Euphora infoch both trade in this 10 to

29:17 12p range uh on the trailing basis and maybe even lesser on forward basis. Uh so that is about the peers. LME is share India in and out record sometimes good sometimes bad. So anchors are yet to come. uh if they come if they come. So uh no conclusion on that front. Uh one thing I noted was this one uh CTO from uh Data Digit Tech uh if I pronounced that correct. Yes, Data Digit Tech, Mr. Sujit Kamat is visible in the shareholding and he has recently joined as a director for this company as well in August 24. So uh maybe that adds value to it. They also did a preo around uh 100 rupees uh in December 24. No. Uh that was

30:03 is it correct? 1 minute. Uh uh oh no uh they did a pre IPO yes in December 24 for around 40 rupees per share and now this issue is coming at around 84 rupees per share. So uh keep that in mind while evaluating this. So uh coming to the final um maybe some more clarity will come in when the anchors come in and maybe some more interviews as well. I only found one IP meet but then it all sounds too similar in the IT space so personally didn't like it that much. Thank you. >> Understood. So question on the IP it player right anything on that I would realize what they have mentioned

30:52 consulting work so it's nothing niche that they are trying to do this even if they mention that they are trying to do this AI and drone stuff everybody does it there are countless players in and around Bangalore and in and around Hyderabad we can see countless players so what they have mentioned is this Dave info So it trades near 18 times and this one Euphoria Infoex it with trade near uh 10 to 11 times. So it is already uh uh costlier than uh priced higher than these two. >> Understood. So on the higher side only right then so on that basis itself it seems like a Got it. With that, maybe we have covered

31:37 pretty well. Unless you have something to add. >> No, no, I'm done. I'm done. >> Okay. Okay. Perfect. Uh, let me see where Sorup is. I can't find Sorup. Uh, Sorup, are you on the call? >> Uh, I can't see him either. >> Uh, maybe then what we'll do is we'll move forward to the fourth company. We'll do a main board first. We'll do Amanda. Sorry, Sachin, you will have to kind of continue to speak if that is all right. Sachin has been doing most of the heavy lifting today. >> All right. All right. All right. >> Let me set up Amata Healthcare incorporated in 1994. Company is a farmer company that specializes in development, manufacturing and marketing of diverse array of sterile liquid products specifically pinatal products which are packaged in plastic containers

32:24 utilizing ABFS and ISBM technologies. Kushna you'll probably have to explain all of that to me in a very naive language. Suchin when you are explaining the company but from my understanding it's a farmer company that does some CDMO sort of a work I don't know uh you'll tell me the company is also a manufacturer of medical devices uh setting up the IPO it's a 126 cr IPO all of which is a fresh issue uh market cap 489 crores 25% dilution FI25 financials to 276 crores revenue company and 10.5 crores so uh 4% match margin if I'm not wrong. Uh >> you're right. >> Yeah. And then um coming at 45 47p which

33:12 is expensive. So we want to understand but on the high level company seems super expensive in terms of the LM. The LM is beline capital. So with that over to you Sachin to talk about A healthcare. Uh I think Sav is back. Uh so we should go with All right. All right. All right. Okay. So as you mentioned this Amanda Healthcare uh they are a Gujarat based pharmaceutical company uh established back in 1994. So earlier they were named as Mark Parentals but later in June 2014 they changed their name. So I'll come to that later when why did they change their name? So they specialize in uh sterile sterile liquid parental products uh both large volume small volume uh and they have around 47 products around six

33:59 with six segments uh fluid opalmic for the eyes respiratory oncology etc. So uh what this parents is just some system we uh use in the hospitals so that uh that medicine directly goes into our veins and not through the digestive system. So that is what parentals is in easy language. uh they also have one who WHGMP certification and some other international certificates as well uh from various countries uh 320 plus distributors in domestic uh country uh for the domestic purposes and they also do export to around 47 to 48 countries. So what they highlight is they have a ster brand which is their flagship brand which is primarily used for this oncology uh which they launched in 2016 and they claimed to be a first mover in

34:44 that. So what this ter port is, it is a two port uh IV fluid container. So that container has two ports. So the medicine out of that container is able to get better into the veins of the patient. So that is what helps in assessing the I mean treat uh treating the patient uh more uh purposefully and with more care. So that is what the primary use of this uh two port container is. So what they're saying is that two port container is gaining traction and it is growing at around 50 15 to 20% kar and this teleport is their flagship brand. So they are uh supposedly reliant on this uh for much of their revenues going ahead. Uh also this teleport is uh comes with higher pricing. It is around 2x of the normal IV fluid container. So that

35:31 gives them better margins as well. So 55% of their revenues come from domestic sales uh which is largely steady port uh which they are trying to do and Aman claims to have around 4 to 5% market of this uh market share in steer port or we if we say that this two port IV fluid container in India 30% of the uh revenues come from exports in FY25. It has largely been near 30 323% in previous years as well. So not much traction on that front. uh currently they are utilizing around 90% of their capacity across uh uh seven manufacturing lines that they have all are located in Gujarat only. uh now coming to IPO proceeds uh 70C cr is for this terot facility expansion so they will add current capacity is around 5.4

36:19 CR units that they make in a year and they will be adding around 5.4 CR additional u by January 26 and another 5.4 CR by FI27. So they will add in two trenches. Another 30CR is to fund the capacity expansion of this uh small volume parental line and this will add around 10.7 CR of units uh to this uh small volume small volume parental line. This will be done by FI27 uh which is around 50% addition to the existing capacity and the rest is general corporate purposes. Uh now coming to financials in FY23 they did 262 CR of revenues with and uh and they had suffered a loss of 2.1 CR. Now why this loss was they had a onetime tax

37:04 write off for several items around 7.8 cr. So that is why the loss also this revenue came down uh revenue and margins came down sharply because FI22 and before that was COVID er era. So normalized to FI23 uh we see this uh now to FI24 uh the revenues rise to 282 CR with 20% AIDA and uh 3.3 CR of PAT uh specifically for FYI 25 uh the revenue again dipped uh 2 to 276 cr and the uh AIA was uh slightly higher uh than the previous year around 22 22 to 23% AIDA but what happened is uh their volumes of sale decreased So that is why we see the reduction in revenue. Also they

37:51 mentioned that their capacity was full so they could not sell it but whatever they made they did not sell it as well. So inventory maybe build up it is literally visible in the inventory build up as well and the margins I think is probably higher due to this inventory build up in FI25 which is around 4% PD which is which was earlier around 2 to 2.5% pad margins. uh though we see that the cash from operations is okay and the business is generating cash but the growth is not visible here uh for FY26 uh they did not mention a specific growth percentage but maybe the January 26 uh facility for teleport that comes live so it will add around 10 to 15% kind of growth that is all I see uh currently now coming to risk uh debt has been very high it has

38:38 been very high for around 2 to three years and they are not trying to repay as well uh they almost gave around 50 to 60% of AIDA as their interest cost. So also in 2022 they had a waiver of 68 CR from this KKR finance uh institution after restructuring the existing debt because because uh before that they were under defaulter category. So by 2022 they received a 68 CR of u waiver and then they normalized to the non-defaultter category. Also for this debts the promoters have placed around 25% of their holdings. So uh that is one thing to note. Uh so now coming back to the name change why they changed their name to AMA. So in uh 2013 of December

39:24 they had a case where they supplied substandard quality products. So for that they had to uh attend those cases, attend hearings and then in November 24 uh November November 2014 they finally recalled those products and in and around that time they changed their name to Amana Healthcare. Also they received a short suspension in that time for their facility and that case is still ongoing in some court in Mumbai. It is not still resolved yet. So that is still ongoing. Also they applied for a US FDA license for their products. uh but they received around 19 to 20 observations and due to unsatisfactory replies they never tried to go back again for the USFD approval and they did not pursue it further. Some minor tax litigations are also there uh I forgot the amount but

40:10 they are visible. Now coming to the IP pricing uh earlier they were trying to uh get a fresh issue of around 1.25 25 CR of shares around 17 to 18 July when they did the did that call and now it is reduced to 1 CR of fresh shares. So some issue reduction is there. Uh pre IPO happened in July 24 uh where we see names like SV Fin invest Kla invested NG family trust uh somehow we also see Faruk Patel's father is also there and that preipo happened at around 100 rupees per share. uh now coming to the current it's around 46 times trailing uh why I don't know why they have priced it uh so steep now even if we take the interest burden that is there and we if we try to u value it on EV to aida it's

40:57 near 11 times so that is quite high as well we see a recent uh for the pier that they have mentioned they have mentioned some Dennis cam so that trades you know 16 times it is not a exact pier but it is quite lower than this amount of healthcare but that trades you near 16 times and there are there are many peers in this small volume parental and large volume parental as well. uh we saw one recome uh recent theme onx biotech which was in this parallel only and it rates near 10 to 11 times uh not a direct peer but uh somehow relatable to amanta uh for this teleport that two port IB fluid system uh there are many uh private players uh and MNC's as well a life shri Krishna Kesha Baxters Bbrraw

41:45 and all all of these players are taking around 10 to 15% market each and after that then this amount the healthcare comes in. So lead manager is Vline. Uh uh it is a SM lead manager but has a decent repute. Anchor book I saw two good names. Uh one that Shanchi fund and one is this uh health to wealth fund. Uh Finn Avenue was again in the anchor. They were also in the preipo and they were again in the anchor. So uh for the valuations I think it is priced very steep. uh maybe in FI26 or maybe by FI 27 forward valuations it normalizes to around 30 to 33 times that is what I see uh the STE port thing that they are trying to highlight again and again it was the first mover in 2016 when they first

42:30 launch uh launched it but now enough players are there they have developed their own brands their own tech so I do not see that as a competition uh as a advantage for them uh in that uh context like it was in 2016 so that was about amant healthcare Wow again super expensive and there are lot of things which don't sit well with the business right so that is something which needs to be kept in mind another such issue which is like I I don't know like there's no slam dunk issue this time which we need to apply uh but yeah it seems like a difficult business to value we'll see how it is also evolving over times I like the anchor book honestly for a 126 cr issue but outside of that nothing major

43:15 which I could like in the business. So, we'll see uh how ama reviews over time. Definitely not looking at it in terms of a long-term position. With that, let me move forward to the fifth company uh go construction and quickly set it up. Uh incorporated in 1997 uh the company's infra layer specializing in construction of cement plants, power plants, dairy plants and other industrial facilities. in priv which is not getting that high of a P in the market as such. As of June 30, 2025, companies executing 14 ongoing projects across eight states supported by an order book of 597 crores. Setting up the IPO, it's a 100 cror IPO. So huge size IPO 100 cr IPO 81 cr 19 crs

44:05 market cap 380 crores per company. So they are diluting like around 26 27%. uh FI25 financials about their top line was 594 crores huge top line and bottom line was also decent with 38 crores high top line for a bottom line for a SN business 38 crores company which is like 6% 7% margin business and like it's coming pretty decent 10p trailing forward maybe sor 10 when he's explaining the company in terms of the LM the LM is alpha capital advisor So with that over to you sort of to talk about go construction.

44:50 >> Okay. Am I audible? >> Yeah. So to be honest, Manish, I think you've covered almost everything that is there in this IPO. Uh if someone was holding the breath for a slam dunk IPO, uh let me tell them this is not it. So yeah, a fairly simple business. Uh to be honest, I'm going to keep it very short. Uh partly because there's not much material available right now as well. And the RHP is also pretty straightforward. You know, like you said, it's a construction contractor um into you know building industrial plants that two they are almost exclusively specialized into cement plants. So until

45:37 FYF 24 they used to do 85% of their revenue from cement industry. I think that came down a bit in FY 24 uh 25 to about 75%. Um the about 20% is from power plants uh construction. So yeah like I said I don't know what valuations the market must uh give this uh business. there's no real mo there's no real uh specialization although they've been around since 1997 so that's a long time and the the expertise that they developed probably holds them in goodstead here uh they started off extremely small you know they they're from Rajasthan and they started off uh like uh one and a half

46:24 two cr projects at a time and now they have several projects that exceed 100 crores so uh they have a good track record, a good trajectory. Uh client list is also impressive like all the who's who of the cement industry, you know, your altex, your dharmas, all of them uh are their clients. Uh revenues have been growing well. Uh FY23 they did 270 crores which moved to 380 crores 86 crores in FY24. So that's about what 40% jump. and then another 50% jump in FY25 uh to reach 5890 crores almost. So uh

47:10 about 8 and a half 9% AITA business 6 and a half 6% pat margins uh they have a good order book uh like you said 590 cr 596 crores as of June 30. interesting here is that uh uh the order book has actually come down. If you see year onear uh year ending FY23 they were about 453 crores which went up to 547 crores in March and uh 2024. Uh this year March they were at 438 crores. Uh which has gone up now to 596 by June. So looks like uh uh probably a lot of orders come in in in the first quarter. So that's where uh the uh order

47:58 is order book is. Uh uh coming to use of funds uh like you said it's a big issue almost 100 crores out of which 18 crores is a offer for sale and the remaining they're using about 42 crores for capex uh mainly to uh buy more equipment. uh they claim that uh this will help them uh uh bid for larger contracts and currently they're in 12 states. So they are saying that it'll help in geographical expansion as well. Uh about 23 crores of uh the IPO funds are for repayments of loans which is a bit odd because they already very low debt uh balance sheet. So debt to equity ratio is about 0.2 two for uh financial F uh

48:46 25. So it's a bit odd. I think their total debt outstanding is 27 crores. They're planning to pay out about 23 crores of that. So practically will be a debt-free company. Uh rest is for general corporate purposes. Coming to litigation, there are two civil cases which is a bit worrying. Uh but I think in this industry it's uh kind of uh kind of the norm you know. uh some uh litigations will be there they are minor uh the amount I don't remember exactly but nothing uh big but still uh around two civil cases there are some direct and indirect tax uh demands as well uh which is a bit of a red flag

49:33 coming to valuations it's uh coming at about 10p uh trailing I couldn't find much in terms of guidance. So forward P is a bit challenging at this point. We'll have to probably wait for some more material to come about. Uh right now they they mentioned PowerMake, SUNTC and Alalia contracts as their peers in the RHP uh which is again doubtful. SUNTC Infra I don't know it's a bit lower down the value chain. Yeah, I think it listed around 10p uh or lower and there was a bit of a jump uh on listing day in Santex. So I guess something similar will I'm

50:18 expecting in Go as well. Uh otherwise other than the valuation which is quite low there's nothing else much to write home about. Uh the LM is Surujan U who has a good track record to be honest. I think the last IPO they came with was Sria which has done well. So that's a plus point. So overall I think it's a largeish issue for SMMES. U need to see how the anchor book comes in. Uh I think 1st September it closes. uh but right now uh probably an avoid for me maybe small small uh uh uh allocation since it's big chances of getting allocation is good so

51:04 maybe make a small application that's it I think yeah that's about it uh for >> understood understood thank you so much s for completing this review somehow All of these issues this week none of them are as I said which are particularly exciting but it is what it is. I have one question how are the cash flows or anything that you saw on the cash flows of the business? Uh yeah cash flows are good uh uh uh positive operating cash flow is good in this business uh because there are some delays in payments uh many times you know I think their projects have uh after completion I think they have a one-year period uh before they get the

51:50 you know performance signoffs and they might have some retention uh money for all their projects uh but I think uh looking at the cash flows also there's uh if you see the payables they've gone up suddenly in last financial year. So you know I wouldn't read too much into that. Uh so we've se I've seen personally companies that go for IPO you know there's some leeway with suppliers you know IPO again cannot confirm or uh say for sure but these things happen. So >> but end of the day it seems like the financial situation as well right because you're saying 27 cr depth that's

52:36 it and all of them that is also being paid off. So like it's not a like on paper it seems like a well-run company at least like in terms of >> expenses. Yeah. Yeah. Yeah. Well done company, good financials, uh decent valuations, but the business itself uh the uh uh business I feel it's just that the probably not the best investable sort of a business where you as a shareholder could make a lot of money, right? Because all of these businesses are end of the day very iffy, right? In EPC players, someone would like >> Exactly. And again, they are heavily dependent on the chemist cement industry. So that's again a cyclical business. Uh

53:25 they are probably riding the cement capex upcycle of late. So again the future is not that great I would think. >> Correct. Correct. Yeah that is what our review was of Goyel Construction. With that we have covered five companies. SNA organics which was like uh so lloy opt uh consulting goel construction and amant healthcare now that rohit you have heard all of them I'll go back to you and ask would you want to consider changing your review of suk lloy or something like that see it's the all of the it look like the only one

54:10 where there is a chance or something happening. I'll definitely keep my I'll keep my option open I think till Tuesday. >> Yeah, it's a very difficult week that I don't know what has happened to the quality. The quality is not great, right? Like none of these issues are something which you'll like genuinely be excited about and that is something which has been the way per say for quite some time like like last one week or like this Anundita was a true standout but other than that everything else was similar only right so >> yeah like even even last week I think everyone and their son applied for current infra and uh what is the other one the water EPC uh uh satwa which uh

54:58 again we'll see how these list but I mean the segment active companies trade at much lower multiples than what the GMP seem to indicate so I don't see any of these things sustaining most of these recent listings that have done well also it's unless there is something specialized about thesememes now uh say a shri for a complex which is a little different company let's see what anand does like these slightly different interesting companies are doing well but same me too kind of businesses that are coming again and again are not doing that well which is where the worry is but I guess of all the lot here you have to go it's good at least that companies at least are coming at lower valuations so hopefully they will give some pop s is one even this go is one definitely the valuations are not expensive so

55:46 hopefully they can give some pop >> y we'll look at both of these businesses uh and we'll also just probably continue to post our reviews as well uh as and when things evolve. But yeah, that is what our review was with respect to today's episode. Thankfully, we are covering all five companies today and we are well short of 1 hour mark. So, which is good. Thank you so much everyone for joining. I'll try and uh edit it today and post today itself. But yeah, thank you so much for joining everyone and have a good day. Bye. >> Thank you. >> Thanks everyone. >> Thanks Manish. Nice. Such an end.