Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Heranba Industries Ltd. - IPO - Sound Financials & Promising Outlook Augur Well

Posted On: 2021-02-22 04:58:21 (Time Zone: Arizona, USA)


About the Company

Heranba Industries Ltd. (HIL), incorporated in May'92, is a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat. The company, with three manufacturing units and aggregate capacity of 14,024 MTPA, manufactures Intermediates, Technicals and Formulations and is one of the leading domestic producers of synthetic pyrethroids like Cypermethrin, Alphacypermethrin, Deltamethrin, Permitherin, Lambda Cyhalothrin etc. Currently, HIL is present in the entire product value chain of agrochemicals industry i.e. Intermediates, Technicals and Formulations. It has diversified its business from manufacturing and selling of Intermediates to manufacturing, marketing and selling of Technicals and Formulations. Majority of its current Intermediates production is utilized for captive consumption for manufacturing Technicals. HIL has more than 9,400 dealers/distributors supported by 21 stock depots spread across 16 states and one UT in the country in order to meet the demand of its products from farmers. The company also exported its products to more than 60 countries in Latin America, CIS, Middle East, Africa, Asia and South East Asia in FY20.

Financials in Brief

HIL's financials have been relative better compared to its peers. While revenue recorded 13% CAGR through FY18-FY20, EBITDA and net profit clocked 25% and 44% CAGR, respectively during the same period. Further, continued increase in sales contribution from new value-added products enabled HIL to witness consistent improvement in EBITDA margins, which improved from 12.5% in FY18 to 16.2% in 1HFY21. Further, cash flow generation has been quite steady with cumulative OCF and FCF of Rs2.5bn and Rs1.6bn, respectively through FY18-1HFY21. Asset Turnover ratio too is quite commendable at 5.8x in FY20.

Our View: SUBSCRIBE

The IPO is valued at 25.7x and 18.9x EPS for FY20 and annualized FY21, respectively, which looks to be reasonable. Given huge opportunity in domestic and international space in Agri and Chemical space along with growing importance of domestic manufacturer globally, growth trajectory of HIL is expected to sustain, in our view. Additionally, HIL already has built sufficient resources in terms of land and other resources to set-up additional manufacturing unit, which bodes well. Notably, its peer like Rallis India and Sumitomo Chemicals are trading at significant premium to HIL despite HIL has displayed superior earnings growth compared to peers. Hence, we recommend SUBSCRIBE to this issue.

PLEASE CLICK HERE FOR DETAILED REPORT


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Emerging Lenders Day - Conference Takeaways - YES Securities

Cement - Prices rise; earnings upgrade to continue - ICICI Securities

Affle India - Navigating privacy and technology challenges will be the key - ICICI Securities

IT Sector Investor Forum - Onwards and upwards - HDFC Securities Institutional Research Desk

Wipro - Beware of integration / impairment risks! - ICICI Securities

Easy Trip Planners Ltd - IPO Review - ICICI Direct

ICICI Direct - Derivatives Weekly View (March 5): Level of 14700 remains crucial for upsides to continue...

Easy Trip Planners Ltd. - IPO - Strong Financials - Reliance Securities

Bharat Forge - Initiating Coverage - Constant evolution - HDFC Securities

Mahindra Logistics - Large-ticket deal win - ICICI Securities

Company Update - Huhtamaki India - ICICI Direct

Gladiator Stocks: IndusInd Bank, VIP Industries - ICICI Direct

Warehousing demand expected to grow around 160% to reach 35 million sq. ft in 2021: JLL

Telecom - Spectrum auction: Prudent investment by Bharti Airtel - ICICI Securities

JB Chemicals & Pharmaceuticals - Analyst meet takeaways - ICICI Securities

IPO Review - MTAR Technologies Ltd - ICICI Direct

Auto Sector - Monthly Volume Round-up - Feb 21 - Decent YoY Growth Continues

Aditya Birla Fashion and Retail - Focus on scaling up new businesses - ICICI Securities

Automobiles (wholesale) - Wholesales push continues despite modest retail trends - ICICI Securities

Aditya Birla Capital - Thoughtful (inclusive) conglomerate business evolution commands premium - ICICI Securities

Jubilant Foodworks - Buying in-the-money options - ICICI Securities

Multi Commodity Exchange of India - Play on rising commodity prices? - ICICI Securities

Gladiator Stocks - Sudarshan Chemical - ICICI Direct

Monthly Commodities Outlook - March 2021 - ICICI Direct

ICICI Direct - Monthly Currency Outlook: Rupee to depreciate further towards 75.00 level...

ICICI Direct - Covid Recovery Pulse - E-way bill generation in February 2021 starts on strong note...

Company Update - Virtual JLR Investor Event - Tata Motors - ICICI Direct

Analyst Meet Update - Aditya Birla Fashion and Retail - ICICI Direct

MTAR Technologies Ltd. - IPO - Huge Opportunities from Clean Energy Bodes Well - Reliance Research

ICICI Direct Derivatives Weekly View (February 26): Failure to move above 14700 may extend declines towards 14300...

Bank: Sector Credit Trends - Slows, Yet again - HDFC Securities

Piramal Enterprises - Pharma day highlights - ICICI Securities

Polymer price tracker - PVC prices rise sharply again! - ICICI Securities

Greenply Industries - Growth returns, at an inflection point - ICICI Securities

Tata Motors - JLR future proofing itself with rapid electric transition - ICICI Securities

Dairy - Higher freight cost and increase in Global SMP prices - ICICI Securities

Analyst Meet Update - Nestlé India (Hold): Focus on product innovation, expanding rural reach - ICICI Direct

MTAR Technologies Ltd - A strong player in booming high precision engineering... - Geojit

Rollover Report for February - March 2021 : Angel Broking

Reaction from industry experts on Q3FY21 GDP numbers

M. Govinda Rao, Chief Economic Adviser, Brickwork ratings on Q3FY21 GDP numbers

Mr. Dhiraj Relli, MD & CEO, HDFC securities views on Q3FY21 GDP Growth Number

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q3FY21 GDP

Rollover Analysis - Feb 21, 2021 - YES Securities

Consumer Durables - Demand-driven recovery continues - HDFC Securities

Cement - Demand surprises; earnings upgrade to continue - ICICI Securities

Gladiator Stocks - TeamLease Services - ICICI Direct

Gladiator Stocks - Metals to outshine post multi-year breakout... - ICICI Direct

Company Update - Sundaram Finance - ICICI Direct

Indian pharmaceutical industry to meet an ambition of US$130 billion by 2030 through innovation-led growth: EY-FICCI report



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020