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Shree Marutinandan Tubes Limited IPO Review

Shree Marutinandan Tubes Limited IPO was engaged in specializing in the trade of Galvanized Pipes and Electric Resistance welding Mild Steel Pipes, including round pipes, square, and rectangular hollow sections. Their product range spans various specifications and sizes, ranging from 15NB to 1000 NB. Additionally, they are involved in the trading of Black Pipes & Solar Structural Pipes. Their versatile products find extensive applications in diverse industries such as Agriculture, Oil, Public Health, Housing, Irrigation, Engineering, Infrastructural, and Industrial sectors.

Their Competitive Strengths are Experienced Promoter and Management Team, Quality Products, Diversified Product Range, Locational Advantage, Established sales and distribution network in all over India. Their Business Strategies are Enhance customer base by entering new geographies, continue to improve operating efficiencies through technology enhancements, Strengthen Brand Value, expanding their product range to add more value-added products.

Shree Marutinandan Tubes Limited Products and Services

Shree Marutinandan Tubes Limited set up separate sales and distribution networks for their products. Most of their steel pipes are sold to wholesalers and distributors within the country. They source their steel pipes from top domestic manufacturers and maintain strong business relationships with them. Following a procurement policy, they typically buy in large quantities to have sufficient stock and ensure timely delivery to their customers. Their strategy of bulk purchasing allows them to get inventory at lower costs, giving them the advantage of offering their products at competitive prices compared to their rivals.

shree marutinandan tubes private limited accept orders from their clients for custom-made agricultural equipment tailored to their unique needs. Rather than producing the equipment Themselves, they’ve partnered with Shree Kamdhenu Machinery Private Limited, a trustworthy contract manufacturing company, to create the products according to their specifications. Their company's product range has expanded to include various agricultural machines like potato diggers, grader machines, hopper machines, ground nut de-stoners, pipe winders, and rotavators. They're in a tough market with many competitors, both big and small. Most clients decide based on prices when choosing their products. shree marutinandan tubes limited face competition not just from similar businesses but also from larger companies operating at regional, national, and international levels. Their expertise in this field allows them to deliver top-notch products that meet customer demands for the highest quality.

Financial Overview

Shree Marutinandan Tubes Limited Financial side, in the past three fiscal years, the company reported a total revenue and net profit of Rs. 35.97 cr. / Rs. 0.13 cr. (FY21), Rs. 47.19 cr. / Rs. 0.06 cr. (FY22), Rs. 47.23 cr. / Rs. 2.02 cr. (FY23). For the first half of FY24 ending on September 30, 2023, it made a net profit of Rs. 1.42 cr. with a total revenue of Rs. 42.85 cr. It seems like the company may have adjusted its performance in the last 18 months to align with the desired price. The company showed inconsistent profits over the past three fiscal years, while its total revenue remained constant in the last two fiscal years. The sudden increase in profits over the last 18 months is raising questions and causing concerns about its sustainability in the future. The performance in the first half of FY24 seems to be artificially improved, and the company's valuation appears to be based on this performance. Comparisons with peers seem misleading. The small equity capital after the IPO suggests a longer wait before moving to the main board.