New Swan Multitech Limited specialises in the manufacture of precision-engineered components and parts for two sectors: the automotive industry and modern farming.
The company’s product portfolio for the automotive industry includes assembly engine hangers, hinge body covers, front cover stay components, fuel filler cap components, main stand complete assemblies, engine guard plates, rear brake arm assemblies, separator breathers, cable guide assemblies, battery tray components, and many other parts that are important for two-wheeler vehicles.
They also design and manufacture various types of brackets, such as cooling recovery reservoir brackets, exhaust tailpipe brackets, fuse block brackets, floor panel brackets, and passenger car air cleaner inlet hose brackets.
For farming, the company manufactures rotovators, seeders, super seeders, weeders, potato planters, potato diggers, fertilizer spreaders, mulchers, puddlers, laser land levellers, disc ploughs and many other agricultural implements.
The agricultural components manufacturing facility is located in Raian, Ludhiana, Punjab, while the auto parts manufacturing facility is located in Vithlapur village, Ahmedabad, Gujarat.
IPO Review
| Parameters | Score (0-5) | Comments |
|---|---|---|
| Promotors/Sr. Management & Work Ethics | 3 | Well experienced promotors. No red flags as per the RHP – open criminal proceedings, etc. except a few open tax proceedings. |
| Company Financials | 2 | Inconsistent numbers. High debt component. |
| Segment Growth Opportunity | 3 | Very fragmented sector, highly competitive with good growth at sector level. |
| Asking Valuation (compared with Peers) | 3 | Asking PE is ~9.5x, peers in the range of 10-30x. |
| Lead Manager’s past performance | 4 | Avg ~ 29% listing day gain for par 29 IPOs in 2023; combined for both the lead managers. |
| Consolidated Score | 3 |
Disclaimer – This is not an investment advice. Nobody has paid us to write this review. This analysis is for education purposes only.
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