Blog Details

SJS Enterprises limited to offer its shares to the  public to raise Rs 800 crore through an initial public offering, issue is completely offer for sale by its existing shareholders, the price band of each share is fixed at Rs 531 to Rs 542 per equity share, the face value of each share is equal to Rs 10. The IPO is opening for subscription on 1^st November 2021 and subscription will close on 3^rd Nov 2021, the allotment of shares will initiate on 10^th November 2021, and shares will list on the market on 15^th November 2021. Investor can apply for minimum 27 shares and maximum 351 shares at the rate of Rs 542 under retail category.

About Company

SJS enterprises limited are one of the leading Indian decorative aesthetics company, primarily engaged in ‘design to deliver’ aesthetics with a diverse product offerings for the consumer appliances and automotive industries. The product of offerings include - decals and body graphics, 2-D dials and appliqués, 3-D dials and appliqués, 3-D badges, domes, overlays, aluminum badges, in-mold labels, or decoration parts, lens mask assembly, chrome-plated printed and painted injection moulded plastic parts. The subsidiary of SJS Enterprises, Exo-tech, accommodates to requirements in the two-wheelers, passenger vehicles, consumer appliances, farm equipment, and sanitary ware industries for chrome-plated, printed, and painted injection moulded plastic parts.

The company’s manufacturing facilities are situated at Bengaluru and Pune, these facilities having an annual manufacturing capacity of 20.861 crore and 2.95 crore products as of 31^st March 2021, respectively. In fiscal year 2021, the company and its subsidiary produced 9.194 crore and 1.560 crore products, respectively. The company has a global presence and supplied over 11.5 crore parts to around 170 customers across 20 countries in fiscal year 2021.

Strengths of the company

• SJS is the leading decorative aesthetics supplier with a large portfolio of top products, which are mentioned above.
• Strong manufacturing capabilities and established network of supply-chain
• Innovative product designing capabilities
• Company has the ability to maintain customer for longtime, company is having a strong customers, few of them are- Flat, Force Motors, Hyundai, Godrej, Skoda, Volkswagen, Bajaj, Tata, Honda, Suzuki, Panasonic and many more.
• Company successfully acquired Exotech Plastics (Industrial equipment supplier) in 2021 to add value to its brand, products, and customer portfolio.
• Experienced and qualified management team, more than 21+ year experience in operations, business development, quality assurance, customer relationships, finance and human resource management.
• According to the report released by CRISIL, the demand for aesthetics is expected to grow at a CAGR of approximately 20% over the fiscal year 2021 to fiscal year 2026 to reach approximately Rs 4,920 crore by 2026.
• Company is having strong financials

Financials of the Company

                                                                                                            All amounts are in INR crore

Risk Factors

• Company operates in a highly competitive market
• Company is dependent on its key customers; Company’s top five customers accounted 62.66% of its total revenue for fiscal year 2021.
• Company is dependent on its suppliers for variety of raw materials including plastics, copper, nickel, aluminum, paints, inks, chemicals, adhesives, plastic polymers etc to manufacture its aesthetics products
• Company is dependent in the two wheeler segment and passenger vehicle segment of automotive industry, company generated Rs 145.97 crore and Rs 41.83 crore from those segments, respectively in the fiscal year 2021. Company generated revenue of Rs 62.91 crore from consumer appliances in fiscal year 2021.
• Company is not having any agreement with consumer companies; any delay on supply of the products to the consumer companies can harm the relationship, which eventually will affect the cash flows of the company.

Peers

Company is having no listed peers.

My Observation

Considering all the aspects of the company, this IPO seems good to invest in. Investors are suggested to invest in this IPO for long term wealth creation.