Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
S A A R T H I
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
SEBI
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
IPOs
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Research
Arbitrages
Equity
Market Whispers
Tax Planning
Home
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
IPO News

| More

Manpasand Beverages Ltd - IPO Note - Asit C Mehta Investment Intermediates Ltd

Posted On: 2015-06-23 19:54:58

Company Background

Manpasand Beverages Ltd (MBL) is a fruit drink manufacturing company with primary focus on mango. MBL currently manufactures its products at its facilities located at Vadodara (2 Facilities) and Varanasi. Although the company has acquired a facility at Dehradun, currently, it is not carrying out production activities from this facility. The company is having a wide distribution network including 73 consignee agents and 654 distributors across 24 states in India to whom it sells directly. In addition to sale through its distribution network, MBL sells directly to Indian Railway Catering and Tourism Organization (IRCTC) approved vendors.

Issue Details

- Fresh issue of 1.37-1.25 Cr shares to raise Rs 400 cr. Funds raised from the fresh issue to be utilized on.

- Setting up a new manufacturing facility in Haryana.

- Modernization of MBL's existing manufacturing facilities of Vadodara 1 and the Varanasi Facility

- Setting up a new corporate office at Vadodara

- Repayment/prepayment of certain borrowings of MBL

Strengths

- MBL's flagship brand 'Mango Sip' has a strong brand identity, especially in the underpenetrated semi-urban and rural markets in India.

- MBL has a wide distribution network of 73 consignee agents and 654 distributors across 24 states in India to whom it sells directly. Further, the company serves IRCTC approved vendors, which provides opportunity to build brand awareness and recall value for products.

- MBL added new fruit flavors under 'Fruits Up,' which includes carbonated drinks and energy drink - Manpasand ORS, in July last year. This move has been successful, with the two brands quickly making up 7.7% and 5% of revenue respectively, bringing the dependence on Mango Sip down to 86.7%.

- MBL's net sales has grown from Rs 85.726 cr in FY12 to Rs 294.30 cr in FY14, showing a CAGR cr 85.29%. whereas, EBITDA of the company has grown from Rs 14.33 cr to Rs 45.74 cr, respectively, showing a CAGR of 78.63%.

Weaknesses

- MBL depends heavily on its mango based fruit drink 'Mango Sip', which is the company's flagship product offering, for a significant portion of its sales. For the Fiscal 2014 and the nine month period ended Dec 31, 2014, 'Mango Sip' contributed 96.85% and 86.87% respectively of the company's net sales.

- It has tough competition with bigger players such as Parle Agro India, Coca Cola India, and Pepsi India, which have far greater firepower to push sales and gain market share.

- Mangoes are the chief input accounting for 60% of sales. Wayward rains have affected mango production this year. MBL may not have enough pricing power to hike prices and protect margins. The company does not have long term contract with suppliers for raw materials and even for water.

- The factory license for one facility at Vadodara has expired. Further, the company has not yet obtained the factory license in relation to its second Vadodara facility. Furthermore, MBL manufactures its tin can packaged products as well 500 ml PET packaged "Fruits Up" fruit drink at third-party facilities, exposing the company to risks in terms of quality and taste.

- The new capacity planned for which funds are being raised will commence production only in Jan 2017. Thus, revenue boost from higher capacity addition will play out only over the long term

Risk Factor

The company has shown good revenue growth in the last three years posting good margins and company has also attracted investment from SAIF Partners India IV Ltd for Rs 90 Cr , however there are some concerns too like it depends heavily on its mango drink and may face stiff competition with other established majors and substitute products and inability to retrieve license for its production facilities could impact the stock. Also, with limited operational history it might be too early to take a call on this company.


Source: Equity Bulls

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





Other Headlines:

HDFC updates on proposed IPO of HDFC Standard Life Insurance Company Ltd
Srei Equipment Finance plans to dilute upto 25% of its capital
Cochin Shipyard Ltd - IPO Note - Angel Broking
Security and Intelligence Services (India) Ltd - IPO Note - Angel Broking
M&M to sell part of its stake in Mahindra Logistics Ltd in IPO
Salasar Techno Engineering Ltd - IPO Note - Hem Securities Ltd
ICICI Lombard General Insurance Company Limited files DRHP for IPO
20 Microns Nano Minerals Ltd to come with SME IPO
AU Small Finance Bank Ltd - IPO Note - CSEC Research
AU Small Finance Bank - IPO Note - Sushil Finance
IPO: AU Small Finance Bank - Subscribe - IIFL
CDSL IPO evokes huge demand from investors
Ashok Leyland Ltd's subsidiary Hinduja Leyland Finance withdraws IPO
CDSL IPO subscribed 170.11 times
GTPL Hathway Ltd - IPO Note - Angel Broking
Central Depository Services Ltd - IPO Note - Angel Broking
Bharat Road Network Ltd receives observation letter from SEBI for the DRHP
PSP Projects Limited - IPO Note - Angel Broking
India Grid Trust - IPO Note - Angel Broking
Hudco Ltd - Focus on Housing and Urban Infrastructure Finance in India: Angel Broking
S Chand and Company Limited IPO garners subscription of 59.49 times
S.Chand & Company Ltd - Providing the syllabus for growth: Angel Broking
S. Chand and Company Limited - IPO Note - Sushil Finance
Shankara Building Products Limited IPO to close for subscription today
CL Educate Limited receives subscription of 1.90 times
Escorp Asset Management IPO to open for subscription on Mar 31, 2017
Avenue Supermarts Limited to list today
Chemcrux Enterprises Ltd SME IPO gets huge over subscription
Shankara Building Products Limited - Thrust on retail to boost potential - Angel Broking
CL Educate Limited - Preparing for the big Test: Angel Broking
Optimus Finance Ltd announces IPO of wholly owned subsidiary
Gitanjali Brands Limited files DRHP with SEBI, BSE and NSE
Jagran Prakashan Limited announces fixing of IPO price by Music Broadcast Ltd at Rs. 333
Avenue Supermarts Limited - A retailer with a growth appetite - Angel Broking
Avenue Supermarts Limited - IPO Note - Sushil Finance
Music Broadcast Limited - IPO Note - Sushil Finance
Avenue Supermarts Limited - A retailer with a growth appetite: Angel Broking
Music Broadcast Limited fixes IPO price band as Rs. 325 to Rs. 333
Music Broadcast Limited IPO to open on Mar 6, 2017
India Finsec Ltd arm IFL Enterprises Limited gets approval fo Public Issue of equity shares on SME Platform of BSE Limited
SREI Infrastructure Finance Ltd's arm Bharat Road Network Limited Files DRHP with SEBI for IPO
GlobalSpace Technologies Limited plans SME IPO, files papers with BSE
Nakshatra World Limited, wholly owned subsidiary of Gitanjali Gems Ltd to raise funds through IPO
Jagran Prakashan Ltd arm Music Broadcast Ltd files DRHP with SEBI for IPO
Majestic Research Services and Solutions Ltd receives approval from ROC for RHP filed for Further Public Issue
GNA Axles Limited - IPO Note Attractive on Valuations: Subscribe - Angel Broking
L&T Technology Services Limited - Issue competitively priced - Subscribe - Angel Broking
IRB Infrastructure Developers Ltd arm files for IPO of units
RBL Bank - IPO Note - SUBSCRIBE - Long-term Play on Strong Growth Potential - Reliance Securities
RBL Bank - IPO Note - Strong Management at the helm of affairs - Angel Broking


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

disclaimer copyright © 2005 - 2017