Rolex Rings - Everything you need to know!
A Thread š§µš (Long-form Article and PDF format link also given at the end)
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A Thread š§µš (Long-form Article and PDF format link also given at the end)
Do hit the retweet and help us educate more investors :)
#IPOwithJST
1/
About Rolex Rings -
- Top 5 Indian forging companies
- Manufacturer and global supplier of hot rolled - forged and machined bearing rings, and automotive components for segments of vehicles - PV, CV, Off-road highway vehicles, 2W and EV
About Rolex Rings -
- Top 5 Indian forging companies
- Manufacturer and global supplier of hot rolled - forged and machined bearing rings, and automotive components for segments of vehicles - PV, CV, Off-road highway vehicles, 2W and EV
2/
Renewable - 8.75MW wind capacity and 1.58MW of solar capacity, solar capacity to be ramped up to 12MW
Location advantage - Plants located at Rajkot which is ~250km from Mundra and Pipavav ports and 700km from Mumbai port. Also helps to get cheap labor for plants
Renewable - 8.75MW wind capacity and 1.58MW of solar capacity, solar capacity to be ramped up to 12MW
Location advantage - Plants located at Rajkot which is ~250km from Mundra and Pipavav ports and 700km from Mumbai port. Also helps to get cheap labor for plants
3/
Capex - No major CAPEX till FY25 as major Capex done
Increasing forging utilization to 60% and machining capacity to 85%
Till FY25, they expect to grow 10-12% YoY
Capex - No major CAPEX till FY25 as major Capex done
Increasing forging utilization to 60% and machining capacity to 85%
Till FY25, they expect to grow 10-12% YoY
4/
Product Portfolio
Issue Details
A bit of history on the IPO
Product Portfolio
Issue Details
A bit of history on the IPO
5/
About their Manufacturing
About their Manufacturing
6/
Diversified Revenue Base
Management
Selling Shareholder (Reducing holding from 27.1% to 8.3% post issue)
Some Numbers
Diversified Revenue Base
Management
Selling Shareholder (Reducing holding from 27.1% to 8.3% post issue)
Some Numbers
7/
Risks -
- Company is a part of Corporate debt restructuring plan as they defaulted on a loan that concerned a 487 cr borrowing (March 2022 they would exit CDR)
- Pledge on Equity shares and NCRPS
Risks -
- Company is a part of Corporate debt restructuring plan as they defaulted on a loan that concerned a 487 cr borrowing (March 2022 they would exit CDR)
- Pledge on Equity shares and NCRPS
8/
- Repayment delays on some borrowings for certain periods including up to Fiscal 2019 (they may be restricted in taking some actions including buy-back)
- Fy18 and FY19 delayed repayment of 103 cr and 37 Cr (the delay was less than 110 and 62 days respectively)
- Repayment delays on some borrowings for certain periods including up to Fiscal 2019 (they may be restricted in taking some actions including buy-back)
- Fy18 and FY19 delayed repayment of 103 cr and 37 Cr (the delay was less than 110 and 62 days respectively)
9/
Financials -
B/S - Debt to Equity reduced
P&L - 2-year CAGR - Revenue is -17.5% and EBITDA is -26.7% (Forging industry had something similar) + the net profit growth looks optical due to tax credit and inventory
Financials -
B/S - Debt to Equity reduced
P&L - 2-year CAGR - Revenue is -17.5% and EBITDA is -26.7% (Forging industry had something similar) + the net profit growth looks optical due to tax credit and inventory
10/
Cash Flows - CFO and FCF reducing. The firm is not raising much of a fresh issue (IPO to give an exit on a big part of the PE holding)
Cash Flows - CFO and FCF reducing. The firm is not raising much of a fresh issue (IPO to give an exit on a big part of the PE holding)
11/
Conclusion
At the upper band of Rs 900, the issue is priced at 25x P/E and 6x P/BV. The price to sales is at 5.93x. The valuations are stretched given the many ancillaries available at 1x P/S or below
Article link - (PDF format inside)
jstinvestments.com/rolex-rings-ipā¦
Good day!
Conclusion
At the upper band of Rs 900, the issue is priced at 25x P/E and 6x P/BV. The price to sales is at 5.93x. The valuations are stretched given the many ancillaries available at 1x P/S or below
Article link - (PDF format inside)
jstinvestments.com/rolex-rings-ipā¦
Good day!
Minor Change - Mcap post listing 2449 Cr and P/S is 4x. everything else same.
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