Shanthala FMCG Products Ltd. is an FMCG product distribution company engaged in the distribution of branded packaged foods, Personal care products, Education and stationery products, Matches, and Agarbatti and tobacco products to large FMCG companies. The company aims at providing quality products at reasonable prices with on-time delivery.
IPO Review
| Parameters | Score (0-5) | Comments |
|---|---|---|
| Promotors/Sr. Management & Work Ethics | 3 | A family-run business, with promotors having 20+ yrs of exp. Exposure in a portion of one state only. |
| Company Financials | 2 | Inconsistent numbers. V shape recovery for topline and bottom-line in last 3 yrs. Company is posting very low PAT. |
| Segment Growth Opportunity | 3 | No moat and highly competitive business. Moderate growth expected for the sector. |
| Asking Valuation (compared with Peers) | 2 | Asking PE is ~25x, which is inline or even higher than some of the big FMCG players. |
| Lead Manager’s past performance | 2 | Avg ~6% listing day gain for last 45 IPOs. 20 of which were in discount on listing day. |
| Consolidated Score | 2.5 |
Disclaimer – This is not an investment advice. Nobody has paid us anything for writing this review. This analysis is for education purposes only.
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