Ratnaveer Precision Engineering Limited
Start Date04-09-2023
Application Timing10am-5pm
Price Range₹93 - ₹98
Min Qty150
Min. Investment₹13950
Listing DateNA
Close Date06-09-2023

About Ratnaveer Precision Engineering Limited

Ratnaveer Precision Engineering Limited is a stainless steel product manufacturer focused on producing finished sheets, washers, solar roofing hooks, pipes and tubes. They have four manufacturing units, out of which two are located at Savli, Vadodara, one is located at Waghodia, Vadodara, and the other one is located at GIDC, Vatva, Ahmedabad. They currently offer over 2500 SKUs of washers to customers. They are one of the few companies who has a backward integration model which is one of the major strengths and has helped them in maximising the returns on investments Global stainless-steel melt shop production was 56.3 Mn Tonnes in 2021 compared to 50.9 Mn Tonnes in 2020 (10.6% growth). In 2021, China had over 54% share in global SS production. Talking about India’s position in the global stainless-steel market, India with average 7% share in global SS steel output (during 2016-20), remained the second largest stainless-steel producer behind China till 2020. Since 2000, steel production in the country has seen a phenomenal increase as the sector witnessed high investments in capacity addition as well as technology up-gradation

Why To Invest in Ratnaveer Precision Engineering Limited

Ratnaveer Precision Engineering is a stainless steel product manufacturer with consistent financial performance. The IPO proceeds will be used to fund the working capital requirements
Strengths And Risks
Backward Integration: : Company has have developed a synergistic system of backward integration whereby they process the waste being generated in manufacturing of products for converting back into the raw material which is utilized again in manufacturing.
FInancial Performance: : Their revenue from operations has grown from Rs 82.1 Cr in Fiscal 2011 to Rs 426.9 Cr in Fiscal 2022, registering a CAGR of 14.73% in last 12 years. Similarly, the profit after tax has grown from Rs 15.42 Million in Fiscal 2011 to Rs 9.5 Cr in Fiscal 2022, registering a CAGR of 16.40% in last 12 years.
Product Portfolio: : From manufacturing SS washers, they have since branched out to manufacturing finishing sheets, solar roofing hooks, tubes and pipes with a wide diversified product portfolio. The portfolio comprises of over 2,500 SKUs of SS washers.
Customer Diversification: : They sell their products both in the domestic as well as international markets, some of the countries they are exporting to including but not limited to Germany, UK, Spain, Netherland, etc.
Experienced Promoter: : Their Promoter and Managing Director has over two decades of experience in the steel and stainless steel industry and they have strong management team with considerable industry experience.
Steel Price Fluctuations: : Steel prices fluctuate based on a number of factors, such as, the availability and cost of raw material, fluctuations in domestic and international demand and supply, international production and capacity, transportation costs, protective trade measures and various social and political factors
Environmental Laws: : Company requires environmental consents under the Air (Prevention and Control of Pollution) Act, 1981, Water (Prevention and Control of Pollution) Act, 1974 and Hazardous and Other Wastes (Management and Transboundary Movement) Rules etc, any non compliance can impact business.
Capital Intensive Business: : The business requires significant amount of working capital primarily as a considerable amount of time passes between purchase of raw materials and collection of receivables post sales to customers.
High Volume, Low Margin Business: : It is a high-volume low margin business. Inability to regularly grow the turnover could lead to lower profitability and hence adversely affect operating results and debt service capabilities.
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