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Focused on micro & nano cap stocks. Appreciate critical feedback. Not SEBI RA. Navodayan, Goenka College Kolkata, @UniLUISS Alumnus.

Sep 18, 2023, 8 tweets

Madhusudan Masala () #IPOAlert. Engaged in manufacturing and processing more than 32 types of Spices under the brand names "DOUBLE HATHI" and "MAHARAJA". Company also sells products like: Tea and Other Grocery Products.
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RHP: madhusudanmasala.com
reports.chittorgarh.com/ipo_notes/Madh…

Balance Sheet and Cash Flow Statement:

Objects of the Issue:

Business Overview:

Capacity Utilization:

Sizeable amount of debts, inventories &receivables with ~1/2 of all borrowings are from related parties (interest bearing). Mar'23 shows a huge jump in finished goods inventory & that could be an issue. Huge amount of capacity available & CWIP is for a cold storage.

Company has reported exceptional performance in the IPO year with signs of window dressing of numbers & raising doubts on sustainability. Asking valuation looks reasonable. Monitor both related party transactions & management compensation post listing.

Overall, it looks average issue to me & needs periodic monitoring of Balance Sheet. I MAY NOT APPLY.
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PLEASE DO YOUR OWN DUE DILIGENCE, REVIEW ACCORDING TO YOUR INVESTMENT STYLE AND THEN TAKE A DECISION.

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