Disclaimer – Analysis is NOT a BUY/SELL/HOLD Recommendation. It can be used for educational purposes. There can be lot of things which have been missed in analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.
ICEMAKE Refrigeration
Business
Ice Make Refrigeration Limited is a leading producer of Cold Rooms, Freezer, Refrigeration System and Chilling Plant, etc. having a plant at Dantali, Ahmedabad. Company is leading supplier of innovative cooling solutions and manufacturer of over 50 plus refrigeration equipment in India. The company has started its business with a mere of Rs. 3 lakh & has crossed the market cap of Rs. 500 crores recently
Manufacturing facilities
Company has two manufacturing units in Gujarat and Tamil Nadu and also they have setup one more unit of manufacturing in West Bengal that is expected to be operational in the next one month
R&D Capabilities, Employee strength
Employee strength 625+, increased from 560+ in last 2 years
Company keeps on introducing new products in market. Ice Make’s innovative equipment product range also includes ice cream mix
preparation for small and medium scale, specially designed mix plant units. Its chiller product range includes Air Cooled Chiller, Water Cooled Chiller, liquid Chiller, Brine Chiller, and Screw Chillers.
Customers and Regions of Revenue and Product verticals
The Company operates under key business verticals including Cold Room, Commercial Refrigeration, Industrial Refrigeration, Transport Refrigeration & Ammonia Refrigeration and caters to wide range of Industries in India and also exports its products to overseas clients in 24 countries
The diversification in IMRL’s client profile also remained healthy with top clients contributing only around 25-40% of its total revenue over the last three years ended FY22. Around 70% of IMRL’s revenue is generated from direct sales whereas the balance is through its dealers and distributors spread across the country
Awards and Certifications
The company over the years have received several awards and accolades including Indian Leadership Award for Industrial Development, Best Medium Enterprise Canara Bank and SKOCH Award for manufacturing, India SME 100 Award and Gold Award for Excellence within its Core Industry category
Experienced promoters and established track record of the company
Promoters have 30 years of experience in cold chain industry
Fundamental Ratios, Cash, Loans, EBITDA,PAT margin, Shareholding pattern
PAT , ROE PAT margin showing improved profile
Debt to equity has come down considerably
Cash conversion cycle has improved to 64 days and Working capital days has also improved
Topline and bottom-line has improved significantly in last 2 years
Shareholding pattern
Strong promoter holding, skin in game
Triggers
.New product launches in last few years as industry is evolving
Opportunity size
There is a huge requirement in India and in various overseas countries for innovative cooling and cold chain storage solutions and ICE Make is well positioned to take advantage of these opportunities. Continuous Penal business is expected to grow at a 14 % CAGR YOY & Cold Chain and storage business is expected to grow at a CAGR of 15% to 17% between years 2022 to 2027”
Need of cold chain infrastructure for Dairy, food and pharma
Capacity Enhancement
Company has acquired approximately 44,538 Sq. Mtr land situated at Mouje : Dhanwada, Taluka : Bavla, District : Ahmedabad, for “Continuous Panel” business. Project shall be fully functional by April 2024. Continuous penal business is a part of our refrigeration business which shall be used in big cold storage projects as well as in infrastructure projects
Company also setup one more unit of manufacturing in West Bengal that is expected to be operational in the next one month
Ice Make’s new project for Continuous PUF Panels has a revenue potential of over Rs. 200 crores in a single shift.
Subsidiaries and Acquisitions
Ice Make Refrigeration Limited has incorporated a Subsidiary of the Company in the name of ‘IceBest Private Limited’. As per the certificate of incorporation dated 28th December, 2022. runrate of 10cr expected, which will increase market share from east India
Industry growth rate
Various forecast showing industry will grow between 14-16% for next few years
Venturing into new markets
Expansion in east for manufacturing will help with voluminous products. Expansion in south, once the current lease gets over for subsidiary may happen. So company has that vision of expanding pan India
Recent Order win
lcemake has bagged Dairy Project for Design, Supply, Installation, and Commissioning of Civil, Mechanical & Electrical work for 1.0 LLPD (Exp. 1.5 LLPD) on Turnkey Basis at Haringhata, Dist. : Nadia, State : West Bengal, from West Bengal Livestock Development Corporation Limited (A Govt. of West Bengal Undertaking) for which the Company has received Award of Contract, amounting to Rs. 65.48 Crore including GST and all other charges / taxes. Entire Job including Handing over shall be completed within 540 days.
Scuttlebutt shared by one of fellows Yogesh whose family is in Icecream business–adding details with his permission
Risks
Susceptibility of IMRL’s profitability to volatile raw material prices. The main raw material used by IMRL in manufacturing comprise of polyurethane (PU) chemical and galvanized steel sheets along with components made from copper and aluminium. Prices of these products are volatile in nature (as PU is a crude oil derivative, while prices of metals are inherently volatile), it exposes IMRL’s profitability to adverse movement in these prices. Considering raw material cost constitutes ~75% of Cost of Sales, any variability in the same could affect IMRL’s profitability.
Further the nature of contracts are fixed, price can not be changed for existing contracts easily.
Stiff competition from organized big logistics players
Subdued performance of its wholly owned subsidiary viz. Bharat Refrigerations Private Limited (BRPL).
Technicals on 11 July 23
ALSO READ : Company at Y2K moment
ALSO READ : Dream come true
Disclaimer – Analysis is NOT a BUY/SELL/HOLD Recommendation. It can be used for educational purposes. There can be lot of things which have been missed in analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
ALPHA AFFAIRS 