SJS enterprises IPO : Subscribe or NOT?

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

SJS enterprises IPO –SJS is one of the leading players in the Indian decorative aesthetics industry. The company is a ‘design-to-delivery’ aesthetics solutions provider with a diverse product offering for the automotive and consumer appliance industries.

Business — The company’s product offerings include – decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminum badges, in-mold labels, or decoration parts, lens mask assembly, and chrome-plated printed, and painted injection moulded plastic parts. The company’s subsidiary, Exotech, caters to requirements in the two-wheelers, passenger vehicles, consumer durables/appliances, farm equipment, and sanitary ware industries for chrome-plated, printed, and painted injection moulded plastic parts.

Offer purpose —

An offer for sale of Rs. 800 cr from existing promoters and stakeholders

Risks —

Massive dilution in IPO as offer of sale does not bode well

Maximum revenue coming from few client posing concentration risk

Short term revenue and profit risk is there

Also READ : Fino Payment Bank IPO : SUBSCRIBE OR NOT

Strength

Leading decorative aesthetics supplier with a wide portfolio of premium products
Strong manufacturing capabilities and established supply chain network
Innovative product designing capabilities
A strong relationship with global Tier-1 companies
Strong financials
Experienced and qualified management team

Future

SJS is a leading player in the Indian decorative aesthetics industry and scope of growth is there.

Valuations

The issue looks fully priced discounting all near term positives

Should we apply?

Avoid and wait for results for next 2-3 qtrs to see if company is able to perform as anticipated

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