Apply This IPO

Best Margin

Zero Brokerage

24*7 Customer Support.

Fastest mobile support

---

Apply with Angel One

Apply with Zerodha

Pre-Apply with Upstox

New Swan Multitech Limited IPO Review

New Swan Multitech Limited IPO Incorporated in 2014, was engaged in engineering-led manufacturer of (i) complex and critical precision engineered components and parts used in automotive sector (“auto components”) and The company creates farming machines that are made to fulfill the various requirements of contemporary farming, known as "agricultural implements." In the automotive industry, they produce, acquire, and provide various precisely crafted tubular assemblies, welded assemblies, accurate brackets, sheet metal components, precision brackets and sheet metal parts.

In the agricultural implements and auto components industry, competition is intense, with the main factors being product quality, cost, delivery speed, development, and effective management. Some of their competitors are larger and have more financial resources and economic advantages, including patents, unused production capacity, lower labor and healthcare costs, lower tax rates, and in some instances, subsidies for exports or raw materials. They face competition from various manufacturers and distributors in the automotive component and agricultural implements sector who offer similar products.

New Swan Multitech Limited Products and Services

In the realm of farming equipment, they specialize in creating, producing, and supplying a diverse array of tools crucial for different stages of agriculture. Their extensive lineup covers everything from preparing the soil and sowing seeds to managing crops, harvesting, and handling crop residues. Within this category, they offer a variety of equipment, including rotovators, seeders, super seeders, weeders, potato planters, potato diggers, fertilizer spreaders, mulchers, puddles, laser land levelers, disc ploughs, and various other agricultural implements. All their farming tools are crafted at their manufacturing facility situated in Raian Village, Ludhiana, Punjab.

new swan multitech ltd Competitive Strengths are In-house Manufacturing capabilities, large base of dealers and customers along with strong relationship, Wide Range of Products, Stringent quality control mechanism ensuring standardized product quality, Synergy of young and experienced management team with a committed employee base. Their Business Strategies are Continue to invest in their technological capabilities, expand their domestic presence in existing and new markets, Geographical reach through marketing network, focus on consistently meeting quality standards.

Financial Overview

Over the past three financial years, the company has consistently shown an average earnings per share (EPS) of Rs. 4.82 and an average return on net worth (RoNW) of 26.23%. The current offer price is set at 2.66 times the book value (P/BV) using the net asset value (NAV) of Rs. 24.85 as of September 30, 2023. After the initial public offering (IPO), the P/BV is reduced to 1.85 based on the post-IPO NAV of Rs. 35.71 per share (at the upper limit). The company operates in various areas within the automotive and agricultural sectors. It has high-profile customers and has experienced improved profit margins starting from the fiscal year 2023. However, there is uncertainty about whether these higher margins can be sustained in the future. The current stock offering seems to have a fair price when considering the projected strong earnings for the fiscal year 2024. Investors might consider putting their money in for potential medium to long-term gains.