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Category: Case Study

  • ICICI Bank Case Study: Financials, KPIs, Growth Strategies, and SWOT Analysis

    ICICI Bank Case Study: Financials, KPIs, Growth Strategies, and SWOT Analysis

    Financial Institutions are the backbone of the Indian economy as they accept funds from depositors and lend to those in need; this facilitates the flow of currency and thus helps the country move ahead. 

    Indian banks have played a crucial role in growing the GDP to 3.6 Trillion USD (As of Feb 24), making it essential to know about the situation of the banking industry. Therefore, in today’s blog, we’ll be talking about ICICI Bank, which constitutes almost 25% of the Bank Nifty Index (As of Feb 24). 

    ICICI Bank Overview

    The Industrial Credit and Investment Corporation of India (ICICI) was a government entity established on the 5th of January 1994. Sir Arcot Ramasamy Mudaliar was elected as the first Chairman of ICICI Ltd. It is a multinational company and financial services company headquartered in Mumbai.

    It offers several services in the sector of banking and finance for corporate entities and retail customers via a variety of delivery channels and specialized subsidiaries, including but not limited to investment banking, life insurance, non-life insurance, loans and venture capital.  

    Full NameIndustrial Credit and Investment Corporation of India
    Company TypeListed
    IndustryFinance and Banking services
    Founded1994
    HeadquarterMumbai, Maharashtra
    Products offeredConsumer banking, Commercial banking, Insurance, Credit cards, Investment Banking, Mortgage loans, Private banking, Private equity, Investment Management, Asset management, Mutual funds, Wealth management, etc.
    SubsidiariesICICI Prudential Life Insurance, ICICI Lombard, ICICI Securities, ICICI Direct, ICICI Home Finance Company
    Presence5,900 Branches and 16,650 ATMs
    Key peopleGirish Chandra Chaturvedi (Chairman)Sandeep Bakhshi (MD & CEO) 
    ICICI bank

    Key Highlights for FY2022-23:

    ●      Total Deposits stood at ₹  11,808 billion, and Total Advances were ₹  10,196 billion.

    ●  Net Interest Margin (NIM) is 4.48%, and Net Interest Income (NII) is ₹  621 billion.

    ●      Profit before tax, excluding treasury gains, reached ₹ 424.73 bn in FY2023.

    ●      Core operating profit stood at ₹ 491.39 bn in FY2023.

    ●      Provisions and contingencies were ₹ 424.73 bn in FY2023.

    ●      Average current account deposits grew up 1.9% y-o-y to reach ₹ 1,614.86 billion.

    ●      Average saving deposits grew up 5.5% y-o-y to reach ₹ 3,797.76 billion.

    Key Data Points for ICICI

    Let’s have a look at the statistical data of the company:

    Market Cap₹ 7,69,828 cr.
    Current Price₹ 1,097
    Stock P/E18.2
    52 Week High / Low₹ 1,114 / 810
    ROCE6.32 %
    ROE17.2 %
    (As of 6 March 2024)
    Net Interest Margin (NIM)4.14%
    CASA Ratio45.84%
    Total Capital Adequacy Ratio18.34%
    (As of 31 March 2023)

    Read Also: Axis Bank vs ICICI Bank: Analysis of Private Sector Banks

    Strategy and Growth of ICICI Bank

    Strategy

    In 2023, Indian equities emerged as outperformers in the global space, particularly in the mid and large-cap space, while facing rising international policy rates, volatile community rates, and geopolitical tensions. During all this turbulence, ICICI stayed consistent and remained the 2nd largest private bank in India after HDFC Bank. Here are some of the strategies implemented by them.

    ● Credit Growth:

    Loans are the primary revenue drivers for the bank and help to enhance the growth in the market. ICICI Bank has increased its domestic loan book by 20.5% y-o-y to reach ₹ 9855.28 bn. In FY23, the bank’s total advances grew by 18.7% y-o-y to reach ₹ 10,196.38 bn, and Overseas Book reached ₹ 341.1 bn.

    Credit cards issued by ICICI

    ● Deposit Growth:

    In FY23, deposits increased by 11% y-o-y to reach ₹ 11,808.41 bn. Overall, the average CASA deposit growth was 13.3%.   

    ●  Capital Adequacy:

    Capital Adequacy stood at 18.34% for FY23, 19.16% for FY22 and 19.12% for FY21. Thus indicating a healthy margin over the RBI-mandated percentage.

    ● Profit After Tax (PAT):

    Profit after tax increased to ₹ 318.96 bn, growing at 36.7%. 

    Did you know?

    ICICI Bank has supported over 400 hospitals, benefitting over 1.5 million people by fostering healthcare facilities and infrastructure.

    SWOT of ICICI

    SWOT Analysis of ICICI Bank

    Strengths

    ●  ICICI Bank has a presence in 19 countries. Thus making it easier for it to expand further.

    ●  In FY23, ICICI had a nationwide network of 5,900 branches and 16,650 ATMs.  

    ●  ICICI boasts about a robust infrastructure with a meagre crash rate. ICICI hosts 1.5 million active users on its banking app InstaBIZ, the value of which grew 22% in FY23.

    ●  This bank enjoys a strong brand identity due to its vast branches and ATM network.

    Weaknesses

    ● ICICI Bank faces tough competition from SBI and HDFC bank, making it difficult for ICICI to improve its ranking beyond the current position of 3rd largest bank in India (in terms of deposits).

    ●  The banking industry, in general, saw massive corrections in FY23 as the bull run of 2021-2022 seems to be coming to an end. This can be noticed by comparing Nifty Bank returns with other indices; Nifty Bank grew around 15% while Nifty Pharma grew at 63% (in FY23). 

    Opportunities

    ●  While it may seem difficult for ICICI to outgrow SBI and HDFC, it is still possible via implementing fast growth strategies such as expansion in tier 3, M&A, etc. 

    ●  ICICI’s penetration into the Tier 3 segment of India remains limited; they can gain considerable market share if they focus on substantially improving customer service in Tier 3.  

    Threats

    ●  Policies impact the banking industry significantly, any unanticipated changes in the monetary policy can cause substantial damage to the bank’s KPIs.

    ●  The bank has grown considerably in the last decade, this was made possible due to the brilliant policies and strategies of the management. But, the banking industry is extremely volatile and failure to adapt quickly could erode all the success.

    ●  NBFCs and Fintechs have seen a massive uptrend in the past few years. This trend will likely continue and potentially revolutionize the banking industry as we know it. This could substantially affect the business’s bottom line figures.

    Read Also: Yes Bank Case Study: Business Model, Financial Statement, SWOT Analysis

    Conclusion

    In summation, we evaluated the business, growth strategy, and financials of ICICI Bank. As of February 2024, It is the 2nd largest bank in the nation in terms of Market capitalization and represents a strong position to capture market share amidst the growing demand for credit in the upcoming years.

    Frequently Asked Questions (FAQs)

    1. Is ICICI the largest bank in India?

      ICICI Bank is the 2nd largest bank in India in terms of Market Capitalization.

    2. Who is the CEO of ICICI Bank?

      Sandeep Bakhshi heads ICICI Bank as the MD and CEO. 

    3. What is ICICI Bank known for?

      ICICI Bank offers corporate and retail customers a wide range of banking products and financial services through various delivery channels and its group companies.

    4. Is ICICI Bank a Private Bank or a Government Bank?

      ICICI Bank is a Private sector bank. 

    5. What is the full form of ICICI?

      The ICICI stands for Industrial Credit and Investment Corporation of India.

  • Polycab Case Study: Business Model, Financials, Competitors, and Growth Outlook

    Polycab Case Study: Business Model, Financials, Competitors, and Growth Outlook

    Polycab India is one of the leading manufacturers of wires and cables in the nation. It is engaged in the business of manufacturing wires and cables. Along with these products, Polycab offers FMCG products such as electric fans, LED lighting and luminaires, switches & switchgear, solar products, and conduits & accessories. Let’s look at its company profile, financials, market position, and segments. 

    All About Polycab

    This reputed company was incorporated in 1964, in Mumbai as a private limited company under the Companies Act, of 1956. The company’s consolidated turnover of INR 14,108 Crores in FY23. The company focuses on brand positioning, new product development, scaling operations, customer-centricity, talent acquisition, go-to-market excellence, and good governance. 

    In FY23, the revenue of Polycab contributed to a consolidated 9.8% of the revenue in international business. The company also has expanded its footprint in 93 countries. The company is enhancing its reach and distribution in B2C business and increasing its presence in white spaces for B2B business. 

    Wire manufacturing - Polycab

    Key Metrics

    Market Cap ₹ 73,244 Cr.
    Current Price ₹ 4,881
    High / Low₹ 5,733 / 2,754
    Stock P/E 44
    Book Value ₹ 479
    Dividend Yield 0.41 % 
    ROCE 27.0 % 
    ROE 20.0 % 
    Face Value ₹ 10.0

    Read Also: Case Study on Westlife: The Rise of McDonalds in India

    Product Mix

    ProductsSales in FY23 
    Wires and Cables89%
    FMEG9%
    Copper and others2%
    Product Mix - Polycab

    The figure presents an overview of the segments for Polycab India in the FY 2023. The company’s total revenue was INR 14,108 Crores, of which 89% came from wires and cables, 9% from FMEG (fast-moving electric goods), and  2% from copper plus other sources.

    Revenue of Polycab

    YearRevenue in (INR Crores)
    FY197,986
    FY208,830
    FY218,792
    FY2212,204
    FY231,41,078
    Notes: Numbers are on a consolidated basis.
    Revenue - Polycab

    The figure represents a CAGR of 15% in revenue between FY19 and FY23.

    Products Offered by Polycab

    This company has a diversified range of products and their main products are wires and cables segments. These are: 

    • Control and power cables
    • Instrumentation cables
    • Building wires and green wires
    • Welding cables

    Project Leap

    Project Leap is a multi-year transformational programme aimed at having the right methodology in place which will enable them to achieve INR 200 billion of the top line by FY26. Progressing towards the goal, the company witnessed strong Q3FY24 performance and generated revenue of ₹4,340 crore, growing by 17% YoY.

    Competitors of Polycab

    The industry faces tough competition due to its low barriers to entry. Some of them are :

    • KEI industries
    • Sterlite Techno
    • Finolex cables
    • Precision wires
    • Universal cables.

    A New Era

    In an era, where branding plays a critical role in establishing a company’s identity and connection with customers, Polycab identifies the significance of refreshing its brand and staying in touch with technological advancements. The company engages in deep research and development which helped them to scale up its businesses in the FMEG segment. The company also introduced a new tagline “Ideas. Connected.” which builds on the idea of a future where innovative products simplify lives. Their main intention is to connect with their customers deeply and build brand loyalty. 

    The main pillars of the new brand will constitute a diverse range of products and services such as home automation products, FMEG goods, improved customer experience, and sustainable cables and wires. Polycab’s growth momentum is driven by the growth in its B2C business and sustenance in B2B business while expanding its footprints internationally. 

    Project Leap Polycab - FY26

    Growth Outlook

    In 2024, Polycab is planning to witness substantial growth in its business with more focus on 2 of its product segments – Wires and Cables and FMEG (Fast Moving Electrical Goods).

    By FY26, the company aims to achieve the following objectives:

    • Attain revenue of ₹20,000 crores.
    • Achieve EBITDA margin of 10-12% in the FMEG segment.
    • Achieve 2 times market growth in emerging segments.
    • Secure over 10% of its contribution from online channels.
    • Build stronger and more robust relations with the customers.

    Read Also: Coal India Case Study: Products, Subsidiaries, Financials, KPIs, and SWOT Analysis

    Conclusion

    Polycab India has established itself as a leader in the wire industry, with a strong focus on innovation, customer-centricity, and sustainable growth. The company’s strategic initiatives, such as Project Leap and brand revitalization, are driving its expansion and success in both domestic and international markets. 

    Looking forward, the company has plans to grow even more. Polycab wants to acquire greater market share and meet the increasing demand for their products in global markets.  

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    5D Mart Case Study

    Frequently Asked Questions (FAQs)

    1. What is the market share of Polycab?

      Polycab is expected to have an organised market share of 22% – 24%.

    2. Who is the Chairman of Polycab?

      Inder Jaisinghani runs Polycab as its Chairman and MD.

    3. Is Polycab a debt-free company?

      The company is almost debt-free. Polycab has a healthy Interest coverage ratio of 31.12 and a debt to equity ratio of 0.01. 

    4. What is Project Leap of Polycab?

      Project Leap is a multi-year programme aimed at having the right infrastructure in place which will enable them to achieve INR 20,000 Crores of Revenue by FY26.

    5. What is the EBITDA Margin of Polycab?

      Polycab reported an EBITDA Margin of 13.1% in FY23, an increase of 270 bps from 10.3% in FY22. 

  • A Comparative Study on Top 5 Solar Stocks in India

    A Comparative Study on Top 5 Solar Stocks in India

    Renewable energy has seen a massive uptrend in the past few years, majorly due to the overwhelming support of international entities. Fortunately, our country, India, has access to abundant solar energy, and a few companies can tap this resource’s full potential. 

    Today we’ll briefly overview solar firms and a performance comparison in today’s blog. 

    What are Solar companies?

    Solar energy firms engage in various business activities that involve harvesting and converting solar radiation into electrical energy. Typically, solar companies offer a complete solution, including system design, equipment procurement, and plant installation. The businesses in this industry specialize in various areas, including solar panel manufacturing,  solar inverter manufacturing, solar financing, battery manufacturing, and solar software preparation.

    Solar energy plant

    Reasons for choosing Solar stocks

    1. The government regularly provides incentives to the solar energy industry, which is why investors find them enticing investment opportunities.
    2. With the rising demand for solar energy in the upcoming years, this industry has seen substantial growth in recent years and has excellent long-term performance potential.
    3. Many solar stock companies offer high dividend yields. Hence, investors seeking steady income find them appealing.
    4. Investing money into solar companies gives you the mental comfort of knowing that you are positively impacting the environment.

    Risks involved with Solar stocks

    • The solar sector is subject to significant influence from governmental policies, incentives, and regulations. Any modifications to these factors may impact the company’s growth prospects.
    • The solar industry is very young compared to other well-established market sectors; thus, any major shift in the market could impact its performance.
    • Large players are interested in this industry, so the corporation may eventually have to contend with fierce competition.
    • Small solar companies’ stock may be less liquid, and newly established businesses may have some financial insecurity.

    Read Also: 7 Best Solar Energy Penny Stocks List 2025

    Overview of Best Solar Companies in India.

    Urja Global

    The business was established in 1992 and initially concentrated on financial services until entering the renewable energy market in 2009. They started a project named “Urja Rath” in 2013 to promote environmentally friendly transportation.

    The organization has partnered with several foreign businesses to grow their business, in addition to working on numerous solar projects throughout India.

    Products and Services

    They develop solar power projects after considering their client’s needs and budgets. They offer every piece of equipment needed for solar power plants. By giving their clients appropriate equipment maintenance, they offer excellent after-sale support.

    Suzlon Energy 

    Established in 1995, Tulsi Tanti launched this worldwide provider of renewable energy solutions, with presence in over 17 countries. Pune is home to the company’s headquarters. Through its creative solutions, the company is dedicated to promoting sustainable energy solutions that lower carbon emissions. Since their entry into the solar energy industry, they have successfully installed and commissioned 340 MegaWatt of solar power across several states. In Rajasthan, the business also built a 1500 MW wind-solar hybrid park. 

    Products and services

    They provide a large selection of wind turbines, as well as installation, upkeep, and replacement parts. Additionally, they also provide a customized selection of products to meet the needs of their customers in any climate—hot, dry, desert, humid, etc.

    Suzlon Solar panel

    Sterling & Wilson  

    It is a multinational engineering, procurement, and construction (EPC) firm with a focus on sustainable energy initiatives. Willison Electric Works and Sterling Investment, a consortium of Shapoorji Pallonji consortium companies, merged to form the corporation in 1927. The company’s headquarters are located in Mumbai. In order to capitalize on the expanding energy industry, Sterling and Wilson Private Limited established a solar business in 2011 and started operations there. The business is present in more than 25 countries worldwide. The organization optimizes renewable energy projects’ performance, efficiency, and reliability by utilizing state-of-the-art technologies and creative ideas. 

    Products and services

    They offer complete EPC services for energy projects, and solar power solutions, including roof-top solar installation solar parks, among other things, and their products are mostly concentrated on renewable energy. It also offers energy storage and wind power solutions to its customers. 

    Gita Renewable

    The company was established in 2008, and its head office is in Chennai, Tamil Nadu. Gita renewable energy is firmly committed to sustainable practices and clean energy production. 2014 saw the company’s first 2 MegaWatt solar power plant successfully come online. It also won many accolades, including the state government’s “Outstanding SME Awards”. 

    Products and services

    Using its own power plants, the company produces and distributes renewable energy. Their 2 MW power plant in Tamilnadu is currently their main source of energy. 

    Borosil Renewables

    Borosil Renewables Limited started off its operations in 2009 to reflect a strategic move toward renewable energy. The company was granted approval in 2010 to establish the first commercial facility for producing tempered solar glass. The business introduced the first fully tempered 2 mm thick solar glass in the world in 2017; it offers exceptional strength and resilience to hail. With its current capacity, the company can produce 450 tons of solar glass per day or 2.8 gigawatts of solar modules.

    The business is India’s first and only producer of solar glass.

    Products and services

    Tempered solar glass, the company’s main product, comes in a range of thicknesses from 2 mm to 4 mm. The company offers a diverse range of products. Additionally, the coating is self-cleaning, anti-soiling, and anti-reflective. 

    Comparative Study of Solar Companies

    Market Capitalization

    CompanyMarket Capitalization
    Urja Global1,388
    Suzlon Energy62,693
    Sterling & Wilson Renewable Energy13,678
    Gita Renewable Energy80.4
    Borosil Renewable Energy7,101
    (In crores)

    The table mentioned above makes it clear that Gita Renewable has the least market capitalization and Suzlon Energy has the greatest among the companies listed.  

    52 Week High and Low Prices

    Company52 Week High Date52 Week High Price52 Week Low Date52-Week Low Price
    Urja Global5-Feb-202441.6528-Mar-20236
    Suzlon Energy2-Feb-202450.628-Mar-20236.95
    Sterling & Wilson Renewable Energy9-Feb-202464719-Oct-2023253
    Gita Renewable Energy3-May-20237010-1-2024310.3
    Borosil Renewable Energy01-Feb-202466928-Mar-2023380
    (As on 17 February 2024)

    Income Statement (FY23)

    ParticularsUrja GlobalSuzlon EnergySterling & WilsonGita RenewableBorosil Renewable Energy
    Total Income41.415,9902,1258.87707.08
    Total Expenses39.435,8193,3041.01587.9
    Net Profit1.972,887.29(1,174)7.8588.54
    (In crores)

    Balance Sheet (FY23)

    ParticularsUrja GlobalSuzlon EnergySterling & WilsonGita RenewableBorosil Renewable Energy
    Total Asset2856,047.93,19014.191,391
    Inventory207601.57–174
    Trade Payables (Non-current)65.61,0616500.4143.73
    (In crores)

    Cash Flow Statement (FY23)

    ParticularsUrja GlobalSuzlon EnergySterling & WilsonGita RenewableBorosil Renewable Energy
    Cash flow from Operating Activities0.91(31.15)(1829)15.225.64
    Cash flow from Investing Activities0.64407(11.78)6.85(220)
    Cash flow from Financing Activities(1.09)(495.51)1,431.26(26.44)184.64
    (In crores)

    Key Ratios (FY23)

    ParticularsUrja GlobalSuzlon EnergySterling & WilsonGita RenewableBorosil Renewable Energy
    Basic EPS0.032.64-61.6519.116.79
    ROCE (%)1.1520.69-210.9757.1510.73
    3 Year CAGR Sale(%)-50.8147.72-39.87-23.6259.31
    P/E (x)228.332.99-4.734.6960.51
    P/B (x)2.148.82-24.622.686.13

    It is clear from the previously described comparative study of the company’s financials that some businesses are currently profitable while others are losing money and the growth in sales of the businesses is uneven.

    Read Also: Top Power Companies in India

    Conclusion 

    Investment in the solar energy business carries a high level of risk, but it also has the potential to be very profitable. As with any investment, you must exercise patience and perform due diligence. 

    This is the industry to choose if you are a long-term investor who has funds for long term investments. 

    However, before making any investing decisions take your investment horizon and risk tolerance into account.  

    Frequently Asked Questions (FAQs)

    1. What potential obstacles can solar companies encounter in the present market? 

      People need to be made aware of the significance of solar energy in order for them to begin leaning toward it, as they are not well-informed about the future of solar companies. 

    2. What are some possible avenues for expansion in the solar sector in the future? 

      The industry might grow significantly as a result of favorable legislation, market expansion, business model improvements, and technological advancements and with the government’s incentive support for the promotion of renewable energy, this all would pave the way for a more sustainable and energy-secure future.

    3. What role do solar companies play in maintaining a sustainable environment? 

      Solar businesses are important for preserving a sustainable environment because they lower emissions, enhance the quality of the air and water, conserve resources, create green jobs, and advance technology.

    4. Which solar company is the best place to put money?

      Every solar firm aims to succeed in its market, but all businesses have strengths and weaknesses. For this reason, before making any investment decisions, it is advised to thoroughly review the business strategy and financial statements of each company. 

    5. Are solar companies profitable?

      While some solar companies are profitable, many are not. The market for solar energy is still quite small, so many companies have yet to grow to the point where they can profit. Nonetheless, businesses in the market longer are making good profits.

    Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

  • CAMS Case Study: Business Model, KPIs, and SWOT Analysis

    CAMS Case Study: Business Model, KPIs, and SWOT Analysis

    While investing money may seem like a simple task, it’s more complex than you may think.

    We will introduce you to a company in today’s article that manages the backend operations of practically all investments made through mutual funds. It’s a highly laborious operation!

    Overview of CAMS

    When V Shankar launched CAMS in 1988, the company was primarily focused on software development.

    The company later obtained a significant investment in 2000 from the HDFC Group, and in 2014, it obtained more funds from the National Stock Exchange (NSE). The business rose to the industry’s top by offering registrar and transfer services to the mutual fund sector.

    Subsequently, the corporation added other services to its list of offerings, including electronic payment services, KYC, insurance repository, and account aggregation.

    By working with more than 750 institutions, the company expanded significantly and was able to secure a market share of more than 70% in the mutual fund transfer industry.

    Data storing

    Do you know what RTA is?

    The entity that manages a company’s ownership records of shareholders and bondholders is known as the Registrar and Transferer (RTA). It makes it easier for units to be transferred between holders.

    Awards and Recognitions

    2023 – Economic Times Datacon Award

    2023 – Technoviti Awards 2023

    2020 – Excellence Awards in BFSI – Technology by ASSOCHAM

    2019 – Business World Top 1000 companies

    2018 – Emerging Company Award by Economic Times

    Awards

    Quick facts

    1. CAMS maintains a record of roughly 17 million investors.

    2. Out of the 48 trillion assets in the business, they represent 33 trillion assets.

    3. They hold a market share of roughly 69% of the assets in the mutual fund sector. 

    Market Capitalization

    As of 11 February 2024, the current market capitalization of CAMS is 14,955 Crores.

    Current Share Price

    As of 11 February 2024, the share price of CAMS is 2905.

    Shareholding Pattern

    In the most recent quarter, promoters saw a fall in their stake from 19.87 to 0, while FIIs and DIIs increased their holdings from 38.61% to 47.69% and 16.06% to 23.08%, respectively.

    Read Also: BSE Case Study: Business Model And SWOT Analysis

    Business Model and Marketing Strategy

    CAMS offers services to mutual funds, banks, insurance companies, and other financial institutions, including account opening, account maintenance, transaction processing, dividend distribution, and all forms of investor communication.

    Transaction fees, which they charge for each account opening, transaction processed, dividend payout, etc., are their primary source of income. In addition, they impose fixed account charges based on the quantity of accounts they administer. Additionally, they also collect monthly fees for their add-on services.

    Financial Highlights of CAMS

    Let’s examine its annual income statement to gain further insight into the company’s financial performance.

    Particular31st March 202331st March 202231st March 2021
    Total Revenue972910706
    Total Expenses551486409
    Profit before tax380383274
    Profit after tax285287205
    (In crores)

    Based on the financial statistics presented above, it is evident that the company’s finances are growing steadily. Both revenue and profit are consistently rising.

    Let’s now examine the balance sheet of CAMS to see its financial situation.

    Particular31st March 202331st March 202231st March 2021
    Non-Current Assets367339309
    Current Assets730618533
    Non-Current Liabilities147135139
    Current Liabilities168173186
    (In crores)

    We will now require you to review the company’s cash flow statement.

    Particular31st March 202331st March 202231st March 2021
    Cash flow from operating activities319321264
    Cash flow from investing activities(102)(131)2.16
    Cash flow from financing activities(205)(203)(272)
    Net Increase/Decrease in Cash Activities12(12)(.58)
    (In crores)

    The statistics above make it evident that net cash flow is now positive after two years of negative figures.

    Key Ratios

    Particular31st March 202331st March 202231st March 2021
    Net Profit Margin (%)28.63131
    ROCE (%)43.5252.3747.70
    Y-o-Y Sales Growth (%)18.4915.165.45

    Net Profit Margin – This ratio indicates the profit margin as a percentage of revenue.

    ROCE – It refers to the financial ratio that defines a company’s profitability from the capital that it uses.

    Y-o-Y Sales growth – This defines the increase in company’s sales over a year.

    SWOT Analysis

    SWOT Analysis

    Strengths

    1. The business has a long history of great brand recognition and is well-known in the sector for its inventiveness, security, and dependability.
    2. They have excellent stability options and can manage big data, both advantageous for expanding businesses.
    3. Millions of investors’ sensitive data is protected from cyberattacks and unwanted access by CAMS’s highly advanced security system.

    Weaknesses

    1. The Indian market accounts for most of CAMS’s revenue; nevertheless, their performance may be impacted due to the company’s restricted geographical coverage and related regulatory risk.
    2. Any downturn in this sector could affect CAMS’s performance, as the Indian mutual fund business provided the majority of its revenue.
    3. Due to its strong market position in India, any new competitors will affect its market share.

    Opportunities

    1. As the population grows, so does the financial sector in India, and this expansion of the financial industry will help drive corporate growth.
    2. In the upcoming years, the corporation can broaden its global reach to reduce the risk of becoming overly dependent on the Indian market.
    3. Due to its strong market position in India, any new competitors will affect its market share.

    Threats

    1. Since their reliance on technology grows daily, any cyber risk could hurt their business operations and reputation.
    2. The company works in the financial industry. Therefore any changes to government regulations will affect its operating and compliance costs, which will ultimately affect its profit margins.
    3. Any economic downturn can potentially affect investors’ investment decisions and, in turn, their businesses.

    Read Also: IRFC Case Study: Business Model, KPIs, Financials, and SWOT Analysis

    Conclusion

    CAMS’s market position in the Indian mutual fund industry is approximately 70%, thus undeniably limited in scope. Nevertheless, the company is growing by diversifying its range of products. It’s also important to keep an eye out for the company’s declining promoter holdings, even though revenue and profit are rising.

    We have covered every facet of the company in this CAMS case study, from its strengths to its weaknesses. Still, before we wrap up, we would like to encourage you to always think about your risk tolerance and time horizon before making any kind of investment.

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    3Hindustan Unilever Case Study: Business Model, Financials, and SWOT Analysis
    4Infosys Case Study: Business Model and SWOT Analysis
    5Eicher Motors Case Study: Business Model & SWOT Analysis

    Frequently Asked Questions (FAQs)

    1. Who is the owner of CAMS?

      HDFC Group and the National Stock Exchange own CAMS.

    2. Can I track my mutual fund investment through CAMS?

      Yes, you can track your mutual fund investment under CAMS; they provide a platform called CAMS online to check your mutual fund portfolio.

    3. Do CAMS have a bright future?

      Yes, the mutual fund business has a bright future based on its growth and the fact that CAMS holds approximately 70% of the market share.

    4. Is CAMS an Indian company?

      Yes, CAMS is an Indian company founded in the year 1988 by V Shankar.

    5. Have FIIs increased their stake in CAMS?

      Due to their strong optimism over CAMS’s future, FIIs have grown their share from 38.61% to 47.69% during the past month.

  • Bharat Petroleum vs Hindustan Petroleum: A Comparative Analysis of Oil Stocks

    Bharat Petroleum vs Hindustan Petroleum: A Comparative Analysis of Oil Stocks

    All vehicle owners have to fill up their fuel tanks to use the vehicles, but have you ever thought about which petroleum companies have better operations? 

    If yes, you’ve come to the right place, as we will compare Bharat Petroleum with Hindustan Petroleum.

    Bharat Petroleum Corporation Limited – An Overview

    Established in 1952 as a joint venture between the Indian government and Burmah Shell, BPCL became a completely owned government enterprise after the government acquired Burmah Shell in 1976. The company’s activities include petroleum exploration, refining, marketing, distribution, and retail sales. The first drive-through gas station in India opened its doors in 1928. The corporation operates over 18,622 fuel stations nationwide, fueling approximately one crore automobiles daily. This company’s market share is about 22% and is also a Maharatna company.

    It is run by the Indian government’s Ministry of Petroleum and Natural Gas. The corporation debuted its emblem on November 18, 1977, and is widely recognized as a golden drop of oil.

    Hindustan Petroleum Corporation Limited – An Overview

    In 1974, HPCL was established by the merger of Esso Standard and Lube India Limited. It became the first public sector company to list on the Bombay Stock Exchange 1992.

    Afterwards, in 1997, HPCL was bestowed the title of a Navratna company. The corporation was granted the title of Maharatna in 2019, and in 2021, it made its most significant profit of 10,644 crore.

    Currently, the corporation has a network of 17,000 retail petroleum locations, of which 40% are located in cities and the remainder on highways and rural areas.

    Oil refinery of BPCL

    Comparative Analysis

    We’ll provide you with a comparative analysis of the two petroleum titans based on several characteristics so you can make an informed investment decision before choosing one over the other.

    Promoters 

    The promoters of BPCL are the Government of India and own 52.98% of equity in it.

    The promoter of HPCL is Oil and Natural Gas Corporation (ONGC) which holds about 54.9% stakes.

    Refining Capacity

    BPCL has a refining capacity of 38.3 MTPA*

    HPCL has a refining capacity of 24.5 MTPA*

    MTPA – Million Ton Per Annum

    Market Capitalization

    BPCL – 15.22 Billion Dollar

    HPCL – 8.57 Billion Dollar

    BPCL has a bigger market capitalization than HPCL, as can be seen from the figures above.

    HPCL is a mid-cap stock, whereas BPCL is a large-cap firm that is included in the Nifty 50 index.

    (Data as of 13th Feb 2024)

    Share Price

    BPCL – 584

    HPCL – 502

    (Data as of 13th Feb 2024)

    52 Week Low & High

    The 52-week low for BPCL was 314 on February 28, 2023, and the 52-week high was 635 on February 8, 2024.

    The 52-week low for HPCL was 211 on February 27, 2023, and the 52-week high was 549 on February 14, 2024.

    Oil refinery of HPCL

    Financial Statement Analysis

    Let’s take a look at the company’s finances before going into any further information.

    Total Income – While BPCL’s total income is 5,35,651 crores and HPCL’s is 4,68,261 crores, both companies have had year-over-year increases of roughly 24%.

    Net Profit – In the fiscal year that concluded on 31 March 2023, HPCL recorded a net loss of 6,980 crores, but BPCL recorded a profit of 2,131 crores within the same time frame.

    Total Asset – HPCL’s total asset value is approximately 1,54,485, while BPCL’s total asset value was 1,60,803. While BPCL’s assets fell by 2%, HPCL’s overall assets increased by 2.8%.

    Operating Cash Flow – While BPCL’s cash from operating activities remained at 12,446 crores, a 38% decline on a YoY basis, HPCL’s operating cash flow is -3,466 crores, indicating a decrease of 121% year over year.

    Key Ratios

    To have a better understanding, let us now turn our attention to these oil and marketing firm’s primary rations.

    Operating profit margin ratio – A performance ratio shows how much of a company’s earnings come from its operations. Operating profit margins for HPCL and BPCL were -2.54% and 0.26%, respectively.

    Inventory turnover ratio describes the frequency with which a business sells and restocks its inventory. The inventory turnover ratio for HPCL is 14.37, whereas the inventory turnover ratio for BPCL was 13.26.

    Current ratio describes the relationship between a company’s assets and liabilities. A greater ratio indicates that the organization has more assets than liabilities. HPCL has a current ratio of 0.59, while BPCL has a current ratio of 0.77.

    Debt to equity ratio – The leverage ratio, which expresses the whole weight of liabilities and debt relative to total shareholder equity, is another name for it. BPCL had a debt-to-equity ratio of 0.69 while HPCL had a debt-to-equity ratio of 2.33.

    Note – Above mentioned data points are as of March 2023.

    Read Also: BPCL Case Study: Business Model, Product Portfolio and SWOT Analysis

    Conclusion 

    Both HPCL and BPCL are strong competitors in the Indian oil marketing sector with robust operations, extensive distribution networks, and government support. But, the nature of government intervention faced by each company is different. 

    Although HPCL concentrates more on renewable energy initiatives, you could choose HPCL if you prefer renewable energy more strongly. If you are looking for a larger corporation in terms of financial performance and refining capacity, BPCL might be a better choice.

    However, the choice of winner will eventually depend on your investment goals and risk appetite. 

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    3Bharat Petroleum vs Hindustan Petroleum
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    5ITC vs HUL

    Frequently Asked Questions (FAQs)

    1. Who are the CEOs of BPCL and HPCL?

      At the moment, Shri Gopalan Krishnakumar is the CEO of BPCL, and Dr. Pushp Kumar Joshi is the CEO of HPCL.

    2. Who is the brand ambassador of BPCL?

      Rahul Dravid is the brand ambassador of BPCL.

    3. Which companies compete with HPCL and BPCL?

      Reliance Industries, Indian Oil Corporation, and Mangalore Refinery and Petrochemical are popular competitors of HPCL and BPCL.

    4. Is HPCL a private company?

      HPCL is not a private company; it is a Government of India enterprise.

    5. Which company has a larger market capitalization: BPCL or HPCL?

      BPCL is larger than HPCL based on market capitalization. 

    Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

  • Hindustan Unilever Case Study: Business Model, Financials, and SWOT Analysis

    Hindustan Unilever Case Study: Business Model, Financials, and SWOT Analysis

    Hindustan Unilever is a household name; almost every product in your bathroom was made by HUL. Today, we’ll explore its business model to understand its operations.

    About Hindustan Unilever Limited (HUL)

    Hindustan Unilever was founded in the latter part of the 1980s. The Lever brothers, established by William Hesketh Lever, first entered the Indian market in 1888 with a product known as sunlight soap. However, the soap was marked with the phrase “Made in England by Lever Brothers”.

    Hindustan Vanaspati Manufacturing Company, Unilever’s first Indian affiliate, was founded in 1931. Lever Brothers India Limited followed in 1933, and United Traders Limited followed in 1935. In 1956, these companies amalgamated to establish Hindustan Unilever Limited.

    The company’s headquarters is located in Mumbai. Rohit Jawa took over as CEO of Hindustan Unilever Limited in June 2023, replacing Sanjeev Mehta.

    After Hindustan Unilever Limited was founded, its primary focus was on acquiring Indian brands that were already well-established.

    Key Acquisitions

    1984 – Brooke Bond, a tea brand.

    1972 – Lipton, a national tea product manufacturer.

    2015-16 – Indulekha, a premium hair oil brand.

    2019-20 – GSK, a healthcare product manufacturer.

    2019-20 – Vwash, a female intimate hygiene product manufacturer

    Awards and Recognition

    2023 – Winner of the KPMG ESG Excellence award across India’s consumer market sector.

    2022- Outstanding Company of the Year by CNBC –TV18

    2021 – Best Governed Company Award

    2021- Sustainable Factory of the Year award.

    2020 – Top performer in the FMCG Category

    Read Also: ITC vs HUL: Comparison of India’s FMCG Giants

    Products OF HUL

    Whether a food and beverage product or a healthcare item, Hindustan Unilever is used by nine out of ten Indian households!

    Products OF HUL

    The products of Hindustan Unilever are as follows

    • Home care products – Laundry detergents, fabric conditioners, dishwashing liquids, and toilet cleaners. (Surf Excel, Rin, Wheel)
    • Personal care products – Soaps, shampoos, skin care products, hair care products, deodorants, oral care products. (Lux, Sunsilk, fair & lovely, Tresemme, axe and closeup, etc.
    • Beverages – Tea. (Lipton, brooke bond)
    • Foods – Packaged foods.
    • Water Purifier – Pureit water purifier.
    • Healthcare products – Health drinks. (Boost, Horlicks)
    • Baby care products – Baby soaps, shampoos, and body lotions. (Dove, Johnson’s Baby)
    • Cosmetic – Cosmetic and beauty products. (Lakme) 

    Market Information of HUL

    Current Market Price ₹2,259
    Market Capitalization (in ₹ Crores)5,30,737
    52 Week High₹3,035
    52 Week Low₹2,136
    Dividend Yield1.86%
    Book Value₹216
    (Data as of 29 March 2025)

    SWOT Analysis of HUL

    Hindustan Unilever SWOT Analysis highlights the company’s strengths, weaknesses, opportunities, and threats, offering valuable insights into its market position and growth potential.

    SWOT Analysis of HUL

    Strengths

    • The company’s primary strength is its widespread presence in India, with more than 8 million locations where customers can purchase its product. Its supply chain is excellent, well-managed, and efficient.
    • HUL has a long history, which they can preserve because of the money they currently spend on product development and research.
    • The company’s financial outcomes demonstrate the impact of its excellent performance.

    Weaknesses

    • A company’s market share might be reduced by any business that focuses on a certain product.
    • Since more and more consumers are turning to herbal items, the corporation may suffer from the lack of any Ayurvedic or natural products in its product line.
    • Due to its extensive product portfolio, HUL may encounter difficulties in effectively managing and allocating resources to it.

    Opportunities

    • The country’s population is likely to have more disposable income in the next few years, which will cause the FMCG sector to grow significantly.
    • The business can quickly buy out companies that manufacture goods outside of its current product line, which will aid in product diversification.
    • They can expand their customer base and increase revenue by utilizing e-commerce platforms.

    Threats

    • The business operates in a highly competitive market, and with the advent of globalization, numerous international brands have established themselves in the country.
    • Their margins may be impacted by regulatory changes made by the Indian government on food packaging ingredients, labeling, etc.
    • A downturn in the nation’s economy may affect consumer buying habits, affecting a company’s profitability.

    Read Also: Polycab Case Study: Business Model, Financials, Competitors, and Growth Outlook

    Business Model and Marketing Strategy of HUL

    The company’s wide range of products enables it to hold the top spot in the market for industrial consumer goods. They have well-known brands in several areas, and their revenue is greatly influenced by consumer recognition of their brands.

    Its primary focus is innovation; a sizable amount of its revenue is allocated to creating new items and enhancing its existing line of products.

    HUL has an extensive distribution network that reaches both rural and urban locations. Additionally, they invest heavily in all forms of promotion, including print, digital, and sponsorship.

    They typically focus on comprehending customer demands and needs because this enables them to develop product lines that cater to consumer preferences

    Branding Strategy of HUL

    What’s in the name? Though everyone has heard this saying at some point in their lives, it is essential to remember that reputation and brand are everything. The company employs various graphics and logos for its many products, but its distinctive logo is printed on each one, making it easy for the general public to recognize them.

    Financials of HUL

    Income Statement 

    ParticularsMarch 2024March 2023March 2022
    Total Income62,70761,09252,704
    Total Expenses48,44347,63240,724
    EBIT14,26413,46011,980
    Net Profit10,28610,1458,887
    (The figures mentioned above are in INR crores unless mentioned otherwise)

    Balance Sheet

    ParticularsMarch 2024March 2023March 2022
    Non-Current Assets57,17556,08954,995
    Current Assets21,32416,99815,522
    Non-Current Liabilities14,20010,53710,150
    Current Liabilities12,87612,02811,280
    Total Shareholder Funds51,21850,30449,061
    (The figures mentioned above are in INR crores unless mentioned otherwise)

    Cash Flow Statement

    ParticularsMarch 2024March 2023March 2022
    Cash Flow From Operations (CFO)15,4699,9919,048
    Cash Flow From Investing (CFI)-5,234-1,494-1,728
    Cash Flow From Financing (CFF)-10,034-8,953-8,015
    (The figures mentioned above are in INR crores unless mentioned otherwise)

    Key Performance Indicators

    ParticularsMarch 2024 March 2023 March 2022
    Operating Margin (%)23.0322.3222.92
    Net Profit Margin (%)16.6116.7416.95
    ROE (%)20.0620.1118.09
    ROCE (%)21.7222.1420.29
    Current Ratio1.661.411.38
    Debt to Equity Ratio000

    Shareholding Pattern

    As of December 2024, the company’s promoters own 61.9% of the company’s shares, while Domestic Institutional Investors hold about 14.73%, Foreign Institutional Investors (FIIs) account for roughly 11.43%, and the public owns 10.34% of the company’s shares.

    Read Also: Netflix Case Study: Marketing Strategy, Product Portfolio and Pricing Strategy

    Conclusion

    The organization has achieved global recognition through its strategic planning and marketing approach. The economy’s overall performance determines HUL’s success, as does the population’s disposable income, which increases company profits.

    We have tried to clarify every statistic and data about HUL in this case study, covering everything from their financials, history, and shareholding patterns.

    However, always consider your risk tolerance and time horizon before making any investing decisions.

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    Frequently Asked Questions (FAQs)

    1. Where is the headquarters of Hindustan Unilever located?

      The headquarters of Hindustan Unilever is located in Mumbai, Maharashtra, India.

    2. What was Hindustan Unilever’s former name?

      Hindustan Vanaspati Manufacturing Company was the former name of Hindustan Unilever Ltd.

    3. How many factories of HUL are there in India?

      HUL currently has 29 factories nationwide.

    4. How many businesses are part of Hindustan Unilever?

      There are more than 50 brands connected with Hindustan Unilever.

    5. What is HUL’s market capitalization ranking in the FMCG sector?

      Hindustan Unilever ranked at the top among FMCG companies, having a market capitalization of around 5.3 Lakh Crore INR as of 29 March 2025.

  • Bharat Highways InvIT IPO: Business Model, Financials, Key Details, and SWOT Analysis

    Bharat Highways InvIT IPO: Business Model, Financials, Key Details, and SWOT Analysis

    The Indian infrastructure sector, particularly the road network, is rapidly growing. Bharat Highways InvIT, a novel investment opportunity in the Indian infrastructure sector is new to the scene but carries an ability to generate stable income and offers a chance to invest in a portfolio of operational toll roads across India.

    Today’s blog aims to provide a comprehensive overview of the Bharat Highways InvIT IPO, including its strengths, risks, and key considerations. 

    Business Model

    Bharat Highways InvIT is an infrastructure investment trust established in India to acquire, manage, and invest in a portfolio of infrastructure assets, majorly focusing on roads across the country. It operates under a Hybrid Annuity Model (HAM), where it receives fixed and variable payments depending on the performance of the project it holds.

    The HAM model is used by the Government of India to finance and execute infrastructure projects. It was introduced in January 2016 to encourage investment in road infrastructure projects.

    It combines elements of two other models.

    • EPC Model – The Engineering, Procurement, and Construction Model is the model in which the government pays the private developer for constructing the road but then owns and maintains it themselves.
    • BOT Model – The Build, Operate, and Transfer model is the model in which a private developer builds, operates and collects tolls on the road for a fixed period before transferring the ownership back to the government.

    Under the HAM Model, the government provides 40% of the project cost as construction spend in equidistant instalments, and the private developer arranges for 60% of the funding through a combination of equity and debt. 

    The company was registered with SEBI on August 3, 2022, and was settled through the Original Trust Deed by GRIL.

    GRIL or GR Infraprojects Limited is a private company and a flagship entity of GR group. It is involved in integrated road engineering, procurement, and construction with an experience over 25 years of in the design of several road/highway projects across 16 states in India.

    Did You Know?

    GRIL has executed more than 100 road construction projects since 2006.

    The portfolio assets consist of seven road assets, all operating on the HAM model, in the states of Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh. These roads are maintained as per the rights granted by NHAI and are owned and operated by the Project SPVs, which GRIL wholly owns.

    The seven projects are as follows:

    1. GR Phagwara Expressway Limited
    2. Porbandar Dwarka Expressway Private Limited
    3. GR Gundugolanu Devarapalli Highway Private Limited
    4. GR Akkalkot Solapur Highway Private Limited
    5. Varanasi Sangam Expressway Private Limited
    6. GR Sangli Solapur Highway Private Limited
    7. GR Dwarka Devariya Highway Private Limited

    Additionally, the InvIT has also proposed to enter into a Right Of First Offer (ROFO) agreement with GRIL, which means that GRIL will grant a right of first offer to the InvIT to acquire certain assets owned and developed by GRIL.

    Highways

    Key IPO Details

    1. Bharat Highways InvIT is a book-built issue of INR 2500 crore. The issue is entirely a fresh issue of 25 crore shares.
    2. The IPO will open for subscription on February 28, 2024, and will close on March 1, 2024.
    3. The allotment for the same is expected to be finalised on March 4, 2024.
    4. The temporary listing date is fixed as Wednesday, March 6, 2024.
    5. The price band for the IPO is set at INR 98 to INR 100 per share.
    6. ICICI Securities Limited, Axis Bank Limited, HDFC Bank Limited and IIFL Securities are the book-running lead managers, while K-fin Technologies is the registrar for the IPO issue.

    Objectives of the Issue

    Providing loans to the Project SPVs for repayment/ prepayment, in part or in full, of their respective outstanding loans (including any accrued interest and prepayment penalty); and other general purposes.  

    IPO DateFebruary 28, 2024 to March 1, 2024
    Listing DateWednesday, March 6, 2024
    Price BandINR 98 to INR 100 per share
    Lot Size150 Shares
    Fresh Issue250,000,000 shares
    Issue TypeBook Built Issue InvIT
    IPO TypeMain-board InvIT
    Initiation of RefundTuesday, March 5, 2024
    Basis of AllotmentMonday, March 4, 2024

    Read Also: IPO Alert: Entero Healthcare Solutions Limited (EHSL)

    Financial Highlights

    Key MetricsFY 2023FY 2022FY 2021
    Total income1,537.471,600.182170.39
    Total expenses816.481,515.681,936.07
    Net profit527.0462.76139.44
    Total Assets6,056.275,536.394,943.94
    Total Liabilities4,939.024,946.194,416.61
    *(The figures above are in INR crore)

    Strengths

    1. Bharat Highways InvIT owns a portfolio of seven operational toll roads located across five states in India. These roads generate regular revenue in the form of toll collections, providing a stable income stream for the InvIT.
    2. The Indian government is committed to developing and expanding its highway network, which is expected to benefit toll road operators like Bharat Highways InvIT. The growing demand for road transportation in India is also a positive factor for the industry.
    3. Diversification of assets across different regions in India helps mitigate the risk of dependence on any single geographic location.

    Risks

    1. Due to the InvIT’s recent establishment, its future growth potential remains unclear, hindering accurate assessment and analysis.
    2. The success of the InvIT relies on finding new infrastructure assets that deliver similar financial performance. Failure to do so could harm the business, finances and ability to distribute returns.
    3. Early termination of InvIT assets could significantly impact the financial health due to non-receipt of payments.
    4. Failure to meet contractual road maintenance standards could lead to penalties, contract termination and harm the reputation, finances and business operations.

    Read Also: Popular Vehicle and Services IPO: Key Details, Financials, Strengths, and Weaknesses

    Conclusion

    Bharat Highways InvIT presents a new investment opportunity in the Indian infrastructure sector and is backed by India’s growing road network and government support. However, investors should carefully consider the challenges linked with its business before making any investment decision.

    Frequently Asked Questions (FAQs)

    1. What is the price band of the Bharat Highways InvIT IPO?

      The price band for the IPO is fixed at INR 98 to INR 100 per share.

    2. When will the allotment and listing of shares occur?

      Allotment of shares is expected to be finalised on March 4, 2024, and shares are expected to be listed on BSE and NSE on March 6, 2024

    3. What is the objective of the IPO?

      The objective of the IPO is to raise funds for further expansion.

    4. What risk can I face while investing in this IPO?

      The InvIT is new with a limited track record, uncertain future growth and contractual risks.

    5. Should I prefer investing in Bharat Highways InvIt IPO?

      We suggest you conduct thorough research and consider your risk tolerance before making any investment decision.

  • Mukka Protein IPO: Business Model, Key Details, Financial Statements, and SWOT Analysis

    Mukka Protein IPO: Business Model, Key Details, Financial Statements, and SWOT Analysis

    Embark on an exciting journey into the aqua-culture sector with the initial public offering (IPO) of Mukka Protein Limited, a leading player in the sustainable seafood industry. 

    In today’s blog, we’ll cover the company’s business model, key details, financial statements, and SWOT analysis. 

    Company Overview

    Established in 2003 as a partnership firm by K. Abdul Razak, the company was renamed Mukka Protein Limited and became a private limited company in 2010. 

    The company’s corporate headquarters is located in Mangalore, Karnataka, India.

    The company mainly focuses on producing fish meal, fish oil, and fish soluble paste, which are used to make aqua food for fish and shrimp, pet foods for dogs and cats, and poultry feed for broilers and layers.

    The company has established production facilities around India’s prominent coastlines, with ten global fishmeal factories — four in Karnataka, four in Gujarat, and two in Oman. Each of their units has a technician for quality control management and dedicated in-house laboratories.

    fish meal

    Awards and Accreditations

    1.  India’s growth champion award by Economic Times.

    2.  Star exporter awards, by Federation of Karnataka Chamber of Commerce and Industry.

    3.  State export excellence award by the commissioner for industrial development and director of industries and commerce.

    4.  Certificate of FT High–Growth Companies Asia Pacific 2023 by financial times and statista.

    Promoters

    The company’s promoters are Kalandan Mohammed Arif, Kalandan Mohammed Haris, and Kalandan Mohammed Althaf; they own 100% of the shares.

    Details of the Issue

    The company wants to issue 8 crore new shares to raise a total of 224 crore. With a market lot of 535 shares, the IPO’s lower price band is set at 26 INR, while the higher price band is set at 28 INR per share. 

    Major details

    Face Value of Share1 INR
    Price Band26 – 28 INR
    Market Lot535 Shares
    Total Fresh Issue Size224 Crore
    Total Number of Shares8 Crore

    Timeline of IPO

    IPO Open Date29th Feb 2024
    IPO Close Date4th March 2024
    Finalization of Allotment5th March 2024
    Initiation of Refund & Credit of shares into demat account6th March 2024
    Listing Date on NSE & BSE7th March

    IPO Allotment Size

    ApplicantMarket LotShareAmount (INR)
    Retailer (Min)153514980
    Retailer (Max)136955194740
    Small High Net Worth Individual (Min)147490209720
    Small High Net Worth Individual (Max)6635130988680
    Big High Net Worth Individual (Min)67358451003660

    Objective of the Issue

    The IPO proceeds will cover the working capital requirements of the company’s associate, Ento Protein Private Limited.

    Read Also: IXIGO IPO Case Study: Business Model, Key Details, and Financials

    Key Financials of the Company

    Balance Sheet

    Particulars31st March 202331st March 202231st March 2021
    Non-Current Asset111.122105.91197.415
    Current Asset464.042286.385256.513
    Total Asset575.164392.296353.928
    Equity155.845103.07869.058
    Long Term Liability16.52012.80617.737
    Current Liability402.800276.412267.134
    (All the above-mentioned figures are in crores, unless stated otherwise) 

    Income Statement

    Particulars31st March 202331st March 202231st March 2021
    Revenue from operations1177.122770.503603.834
    Total Revenue1183.804776.145609.952
    Total Expenses1119.322741.177598.317
    Profit after tax47.52525.81911.010
    (All the above-mentioned figures are in crores, unless stated otherwise) 

    Cash Flow Statement

    Particulars31st March 202331st March 202231st March 2021
    Net Cash flow from operating activities(54.395)4.8085.949
    Cash flow from investing activities(5.258)(12.284)(13.611)
    Cash flow from financing activities74.66415.8589.324
    (All the above-mentioned figures are in crores, unless stated otherwise) 

    KPIs

    Particulars31st March 202331st March 202231st March 2021
    EBITDA Margin8.01%7.04%5.27%
    Return on Equity36.71%30%17.37%
    Debt Equity Ratio1.641.682.31
    Profit after Tax Margin4.04%3.35%1.82%
    Return on Capital Employed17.62%13.86%5.86%

    Based on the company’s EPS, the PE ratio on the lower price band will be approximately 13x, and on the upper price band, it will be 14x.

    SWOT Analysis

    Strengths

    1.  The industry in which the company works has a high barrier to entry; no new businesses can easily establish themselves in this market.

    2.  The company has a long history with many of its customers.

    3.   The business is one of India’s top producers of fish protein products.

    4.   The company’s management team has extensive business operations expertise.

    Risks

    1.  In FY23, the company’s cash flow from operations was negative. This might come across as a red flag to many investors.

    2.  The company offers a non-diversified range of products. This exposes the company to the possibility of decreased profitability during unforeseen events. 

    3.  Since the corporation sells goods to multiple nations, it may be exposed to the risk of volatility in exchange rates.

    4.  Top 10 customers provide the company with 72% of the revenue. Thus, any changes in their contracts could significantly affect their profitability.

    Read Also: Rashi Peripherals Limited: IPO Analysis

    Conclusion

    We have covered nearly every pertinent aspect regarding Mukka Protein in this IPO blog, including its background and corporate finances. The corporation may see an increase in its market share in the upcoming years due to its expansion ambitions.

    If you intend to invest in this firm, please ensure that you have carefully reviewed all of the company’s parameters and considered your risk profile.

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    4Bharat Highways InvIT IPO: Business Model, Financials, Key Details, and SWOT Analysis
    5Pune E-Stock Broking Limited IPO: Key Details, Business Model, Financials, Strengths, and Weaknesses

    Frequently Asked Questions (FAQs)

    1. When will the Mukka Proteins IPO be listed?

      The listing date of the IPO is March 7, 2024.

    2. Is Mukka Proteins a profitable company?

      Mukka Protein Ltd. is a profitable business that has consistently reported profits.

    3. Is revenue concentration a major risk for Mukka Protein?

      Yes, 72% of the revenue is derived from the top 10 customers. This exposes the company to the possibility of incurring losses if these customers alter their contracts. 

    4. How much did the revenue from operations grow for Mukka Proteins?

      Mukka Protein’s revenue from operations grew 95% in 2 years. This massive jump in top line figures indicates the company’s strive for growth. 

  • Platinum Industries IPO: Business Model, Key Details, KPIs, and SWOT Analysis

    Platinum Industries IPO: Business Model, Key Details, KPIs, and SWOT Analysis

    Platinum Industries is entering the IPO frenzy and is raising a total of INR 235.32 Crores. Today’s blog will cover the company’s business model, KPIs, and SWOT analysis.

    Company Overview

    Platinum Industries was founded in 2016 and initially adopted a limited liability partnership status and later transformed into a public limited company.

    The company operates in the speciality chemical business and produces lubricants, CPVC additives, and PVC stabilizers.

    According to a CRISIL assessment done in 2022–2023, the company boasts a 13% market share in the domestic PVC stabilizer industry. The company’s 21,000-square-foot production facility is located in Palghar, Maharashtra.

    As of December 31, 2023, it employed 97 people and served over 273 clients for the fiscal year 2023. 

    Company Promoters

    The company’s founders are Parul Krishna Rana, who holds the executive director position, and Krishna Dushyant Rana, who has the chairman and managing director positions. 

    Approximately 94.74% of the company is owned by the promoters.

    Details of the Issue

    Through a new share offering of 1.38 crore, the company hopes to raise INR 235.32 crore. With a market lot of 87 shares, the issue price’s lower price band is 162 INR, while the upper price band is 171 INR per share.

    Timeline of IPO

    Let’s have a look at the timeline of the IPO

    IPO Open Date27th Feb 2024
    IPO Close Date29th Feb 2024
    Finalization of Allotment1st March 2024
    Initiation of Refund4th March 2024
    The credit of Shares into a Demat Account4th March 2024
    Listing Date on NSE & BSE5th March 2024

    Details of IPO

    Face Value of Share10 INR per share
    Price Band162 to 171 INR per share
    Market Lot87 Shares
    Total Fresh Issue Size235.32 Crore
    Total Number of Shares1,37,61,225 Shares

    IPO Allotment Size

    ApplicantMarket LotShareAmount
    Retailer (Min)18714,877
    Retailer (Max)1311311,93,401
    Small High Net Worth Individual (Min)1412182,08,278
    Small High Net Worth Individual (Max)6758299,96,759
    Big High Net Worth Individual (Min)68591610,11,636

    A retail consumer can invest a minimum of 14,877 INR and a maximum of 1,93,401 INR, as indicated by the above table.

    Objective of the Issue

    The business plans to use the proceeds from the issuance to finance the working capital requirements of its Indian units and establish Platinum Stabilizers Egypt LLP, a PVC stabilizer production plant in Egypt.

    Read Also: Rashi Peripherals Limited: IPO Analysis

    Key Financials of the Company

    Balance Sheet

    Particulars31st March 202331st March 202231st March 2021
    Non-Current Asset38.947.756.09
    Current Asset82.22176.72126.163
    Total Asset121.16884.47932.256
    Equity71.55922.3384.47
    Long Term Liability5.5242.5092.528
    Current Liability44.08659.63225.256

    The above financial statement shows that the company’s assets have expanded greatly in the last three years. Still, its current liabilities have dropped in the most recent year compared to the FY ending in 2022.

    Income Statement

    Particulars31st March 202331st March 202231st March 2021
    Revenue from operations231.481188.15689.269
    Total Income232.555189.23889.530
    Total Expenses181.619165.27882.835
    Profit before tax50.93623.9606.695
    Profit after tax37.58417.7484.815
    (In crores)

    The revenue statement shows that the company’s profit after taxes increased nearly seven times, from 4.8 crores in 2021 to 37.58 crores at the end of the fiscal year 2023. This increase is also evident in the company’s revenue.

    Increasing profitability

    KPIs

    Particulars31st March 202331st March 202231st March 2021
    Current Ratio1.871.291.04
    Return on Equity90.02%132.39%138.63%
    Inventory Turnover Ratio10.8817.5315.33
    Net Profit Ratio16.24%9.43%5.39%
    Return on Capital Employed56.85%52.51%74.28%

    The company’s major metrics are listed above, and they show that, in contrast to 2021, net profit increased significantly in 2023. The return on capital employed also increased during the previous two years, while the return on equity decreased.

    Cash Flow Analysis

    Particulars31st March 202331st March 202231st March 2021
    Net Cash Flow from Operating activities38.35514.8933.276
    Cash Flow from Investing activities(36.731)(4.954)(1.309)
    Cash Flow from Financing activities0.47419.001(1.173)
    (In crores) 

    Based on the company’s EPS from the previous year, the P/E ratio is calculated to be 17.19x on the lower price band of 161 INR and 18x on the upper price band of 171 INR. 

    SWOT analysis

    Strengths

    1.  According to a CRISIL report, the speciality chemical sector in the Indian economy is predicted to increase by 8.3% C.A.G.R.

    2.  The company ranked third in India in domestic sales of PVC stabilizers.

    4.  Due to the substantial entry barriers in this industry, the risk associated with competition is minimal.

    5.  The company has more than 400 grades of products specifically designed for PVC applications, which indicates that the company is aiming for a massive increase in the market share. 

    Risks

    1.  The company presently operates a single manufacturing facility in Palghar, Maharashtra, and any disruption there will affect its profitability.

    3.  Their ability to obtain raw materials or pay more for them will affect their profitability in the future.

    4.  Sales will be impacted by the difficulties a firm faces while expanding into a new area.

    5.  Few clients account for a sizable amount of the company’s revenue; disagreements among them could cause revenue volatility.

    Read Also: IndusInd Bank Case Study: Business Model, Product Portfolio, and SWOT Analysis

    Conclusion

    While the company has a strong financial history and plans to expand into other nations strategically, its clientele is relatively small which may worry some investors. Since establishing itself in 2016 and emerging as a major force in India’s stabilizer manufacturing sector, the company has had a lengthy growth narrative.

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    Frequently Asked Questions (FAQs)

    1. What is the minimum amount required to participate in the IPO of Platinum Industries?

      The minimum investment for the Platinum Industries IPO will be 14877 INR, with a minimum market lot size of 87 shares in the upper price range of 171 INR.

    2. What is the reason behind the Platinum Industries’ IPO?

      The company intends to build a manufacturing facility in Egypt. Thus, they want to obtain money through an initial public offering (IPO) to expand its operations.

    3. What is the Platinum Industries IPO pricing range?

      The price band of the company ranges from 162 on the lower side to 171 on the upper side.

    4. Is Platinum Industries a profit-making company?

      Yes, Platinum Industries has made a substantial profit over the last three years, thus making it a profitable business.

    5. What does the cash flow statement indicate about the company’s operations?

      The company’s cash flow statement shows that the management can maintain consistent efficiency while investing the proceeds to expand further.

  • Exicom Tele-Systems IPO: Business Model, KPIs, SWOT Analysis, and FAQs

    Exicom Tele-Systems IPO: Business Model, KPIs, SWOT Analysis, and FAQs

    A pioneer in the EV charging space is leaping forward with its IPO. This marks a pivotal moment for the company and India’s existing and evolving EV landscape.

    Today’s blog will explore Exicom’s journey toward clean and sustainable transportation.

    Exicom Tele-Systems IPO Company Overview

    Exicom was founded in 1994 as Himachal Exicom Communications Limited for manufacturing DC Power Systems, and since then, it has carved out a niche for itself in the Indian market.

    Exicom Tele-Systems Limited is a company based in India that provides solutions for powering digital communication infrastructure. The company is headquartered in Gurgaon, India and has a presence in over 50 countries. They are a leading provider of power solutions for the telecom industry.

    The company faces tough competition from Amaraja Raja Batteries, Exide Industries, HBL Power Systems, Coslight India, and many others. 

    Exicom Tele-Systems IPO Business Model

    Exicom Tele-systems functions under two business verticals

    Electric Vehicle Charger Business 

    In this segment, the company offers smart charging systems with innovative technology in India for residential, business and public charging use.

    The EV Charger Business started in 2019 and provides slow, fast, and Automatic Original Equipment Manufacturer (OEM) solutions. All these products fulfil the Indian certification requirements and global standards.

    Additionally, the company aims to accelerate India’s transition to electric mobility by designing and building EV chargers for homes and businesses and laying the groundwork for widespread EV ownership.

    The customers of EV Charger Business include Reliance BP Mobility Limited and Fortum Charge & Drive India Private Limited, fleet aggregators such as BluSmart Mobility and Lithium Urban Technologies, and established automotive OEMs like Mahindra & Mahindra Limited, MG Motors Limited, and JBM Limited.

    EV (Electric Vehicle) Charger

    Did You Know?

    Exicom has deployed over 35,000 EV chargers across 400 locations in India.

    Critical Power Solutions Business

    The company designs, manufactures, and services critical digital infrastructure technology in this segment to deliver overall energy management at telecommunications sites and enterprise environments in India and foreign countries. Exicom holds a market share of 16% in the DC Power Systems under Critical Power business and is identified as a leading player in the Li-ion Batteries market.

    Furthermore, under this segment, the company offers a diversified portfolio of DC power conversion systems and Li-on-based energy storage solutions to provide backup power during grid interruptions. In this regard, Exicom is deployed in India, Southeast Asia, and Africa. These DC power systems are specially designed and customised according to customers’ preferences for use at telecommunications sites like large offices, renewable hybrid sites, base station sites, and wi-fi sites.

    Apart from the business verticals discussed above, Exicom has also established three subsidiaries outside India to capture a share of the global market.

    1. Exicom Tele-Systems Pte. Ltd. in Singapore
    2. Horizon Power Solutions DMCC in U.A.E
    3. Horizon Tele-System SDN BHD in Malaysia

    The company holds two dedicated research and development centres and three manufacturing facilities in India with a capacity to manufacture 12,000 DC Power Systems, 44,000 AC Chargers and DC fast chargers.

    The business is supported by an employee base of 1,124 in India and 43 employees at the company’s subsidiaries.

    Did you Know?

    Exicom has deployed 450,000 Li-ion batteries for use in the telecommunications sector.

    Telecom Power Supplier

    IPO Details

    1. Exicom Tele-Systems IPO is a book-built issue of INR 429 crores. The issue is a fresh issue of INR 329 crore and an OFS of 100 crore.
    2. The IPO will open for subscription on February 27, 2024, and will close on February 29, 2024.
    3. The allotment date for the IPO is fixed on Friday, March 1, 2024.
    4. The tentative listing date of the company on the stock exchange is Tuesday, March 5, 2024.
    5. The price band for the IPO is fixed at INR 135 to INR 142 per share. The minimum lot size for the application of the IPO is 100 shares.
    6. The minimum amount of investment for retail investors is INR 14,200.
    7. Monarch Networth Capital Limited, Unistone Capital Private Limited, and Systematix Corporate Services Limited are the book-running lead managers.

    Objective of the Issue 

    • Repay/prepay the borrowings either in part or in full.
    • Investment in research & development and general corporate purposes.
    • Partial funding for the needs of working capital.
    IPO DateFebruary 27, 2024 to February 29, 2024
    Price BandINR 135 to INR 142 per share
    Lot Size100 Shares
    Fresh Issue23,169,014 shares
    OFS7,042,200 shares 
    Issue TypeBook Built Issue IPO
    IPO TypeMain-Board IPO
    Allotment DateFriday, March 1, 2024
    Initiation of RefundsMonday, March 4, 2024
    Listing DateTuesday, March 5, 2024

    Financial Summary & KPIs

    Financial statement highlights of the company (Y-o-Y basis)

    ParticularsFY 2023FY 2022FY 2021
    Revenue From Operations707.9842.8512.9
    Total Expenses690.9809.2511.5
    Net Profit6.45.13.4
    Borrowings117.9107.7101.7
    Total Current Assets574.5433.2528.1
    Total Current Liabilities369.1277.4368.4
    EBIT Margin (in %)5.1%6.2%3%
    Basic EPS (in INR)0.690.56 0.38
    *(Above-mentioned figures in INR crores, except EPS and EBIT Margin)

    Read Also: Enfuse Solutions Limited: IPO, Business Model, And SWOT Analysis

    Key Performance Indicators (KPIs)

    KPIsFY 2023FY 2022FY 2021
    Gross profit (in INR crore)175.22179.11116.24
    Gross profit margin (%)24.75%21.25%22.66%
    EBITDA (in INR crore)52.4367.4229.51
    EBITDA Margin (%)7.41%8.00%5.75%
    Profit after Tax from continuing operations31.0230.3912.67
    PAT Margin (%)4.38%3.61%2.47%
    ROCE (in %)10.92%17.66%5.33%

    Strengths

    1. Exicom is a market leader with an early-mover advantage in the Indian EV market, with a market share of 60% and 25% in the residential and public charging domains.
    2. Exicom’s in-house R&D facilities and manufacturing units allow them to control the entire product development process, ensuring quality, efficiency and customisation capabilities.
    3. With over two decades of experience in the power solutions sector, Exicom enjoys established relationships with institutional and corporate clients, showcasing their expertise in timely delivering projects.
    4. The company has a strong track record of financials, and its recent IPO aims to raise capital for further expansion and development, indicating a positive outlook for the company.
    5. As the EV market in India continues to increase, Exicom’s diverse product portfolio catering to the diverse needs of customers positions them to capitalise on the growing demand.

    Weaknesses

    Besides its strengths, Exicom Tele-Systems also faces several risks that investors should consider before making investment decisions.

    1. The Indian EV charging market is rapidly increasing and becoming increasingly competitive, with established players from the power and automotive industries entering the segment. New startups are also eyeing for market share, thus forcing Exicom to maintain its competitive edge.
    2. The EV technology is consistently evolving with new standards and functionalities emerging. Exicom needs to continuously invest in R&D to ensure its products remain relevant and competitive in the long run.
    3. The company’s recent revenue decline and relatively low-profit margins can be points of concern. However, the company’s ability to manage debt will be crucial for future growth.
    4. The Indian government plays a significant role in shaping the EV Industry through policy decisions and subsidies. Any substantial regulation change could impact Exicom’s business model and profit margins.

    Read Also: Apply in IPO Through ASBA- IPO Application Method

    Conclusion

    Exicom possesses a firm foundation with an early mover advantage, vertical integration, and domain expertise. In the future, their diversified product portfolio and recent IPO position will help them to capitalise on the growing EV market in India. 

    Exicom Tele-Systems can be a good option for investors interested in the future of the Indian EV landscape. The company’s ability to mitigate risks and capitalise on its strengths will decide its success in the coming years.

    Frequently Asked Questions (FAQs)

    1. What does Exicom Tele-Systems do?

      The company provides power solutions and EV charging to a diversified customer base.

    2. Exicom witnessed a decline in revenue in FY23; is this a red flag in the IPO?

      The company saw a decline in revenue in FY23;. At the same time, this may seem like a major weakness of the management, the decision to invest should be taken after a thorough analysis of the company. 

    3. Why is the company going public?

      Exicom is going public to raise funds to expand its business operations and repay the borrowings.

    4. What makes the company special?

      Exicom got a head start in the EV race. They design and build their chargers through an in-house manufacturing facility and have a proven track record of being a market leader.

    5. Is Exicom Tele Systems a main-board IPO?

      Yes, Exicom Tele-systems IPO is raising INR 429 Crores, thus making it a mainboard IPO.

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