disclaimer€¢bhagwan bangles vertical chains •round beads vertical chain •plain chains •7gms...
TRANSCRIPT
Disclaimer
This Investor Presentation has been prepared by Guiness Securities Limited in consultation with Moksh Ornaments Limited and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute an offer. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to the general business plans and strategy of Moksh Ornaments Limited, its future financial condition and growth prospects, future developments in its industry and its competitive and regulatory environment, and statements which contain words or phrases such as ‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or variations of such expressions. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. Further, no representation or warranty expressed or implied is made nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information. Also, no representation or warranty, express or implied, is made that such information remains unchanged in any respect as of any date or dates after those stated herein with respect to matters concerning any statement made in this Investor Presentation. Moksh Ornaments Limited. may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation cannot be copied and disseminated in any manner. No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of Moksh Ornaments Limited. This presentation is strictly confidential. The earlier versions of this presentation, were in draft form, and should not be circulated or referred to by any person.
Business Overview
• Moksh Ornaments was incorporated in 2012
• Manufactures bangles, vertical beads and gold chain
• More than 3 decades of professional experience in the Jewellery industry
• One of the Leading manufacturers of gold Bangles in India with the highest number of
designs spread across the fashion needs of western and southern India
• Diversification into Vertical Bead gold Chain
• Large Customer Base with strong customer retention and generous market share
Major Products
Bangles
• Plaster Bangles
• Marwadi Chudi
• Pipe Bangles
• Nakshi Kada
• Holo Bangles
• Half Round Bangles
• Bhagwan Bangles
Vertical Chains
• Round Beads Vertical Chain
• Plain Chains
• 7gms Chain (South)
Mangal Sutra
• Nylon M.S. Super Fine
• Short Fancy M.S.
Manufacturing Capacity/Product Mix
55% 20%
15%
10%
Product Mix
Bangles Vertical Chain Nylon Mangal Sutra Bullion
Note :- Vertical Chain Started From April 2017
0
10
20
30
40
50
60
Bangles Vertical Chains Mangal Sutra
2016
2017
2018Capaci
ty in
Gold
Kg/ M
ont
h
Manufacturing Capacity
Manufacturing Process
Purchase Gold Bars From registered
Supplier or through gold Loan A/c.
Voucher Creation in the name of Job-
worker and transfer to job worker.
Melt Pure Gold and turn into 92% purity
by alloy mixing.
Wire Drawing & Stamping.
Die Casting Design Fabrication
on Black Wax.
POP Soldering, Polishing
& Cutting
Final Hallmarking , Stamping of MO
Brand on the product.
Second Quality Check
Packaging Delivery to the customer
Swot Analysis
Strength :-
One of the top Manufacturers of Gold Bangle Ornaments.
Experienced Management and well qualified and experienced team.
Diversification in Vertical Chains
Geographically covering large areas of South and west India
Weakness :-
Highly Working Capital Intensive
Dependency on Skilled Labour
Opportunities
Large Potential Growth Expected in the jewellery market in India.
Potential to Launch new Product lines using the same distribution and customer base.
World’s Largest Consumption led domestic Market.
Large Opportunities to start exporting to Middle East Countries.
Threat
Low Entry Barrier for manufacturing gold ornaments.
Government Policy Intervention.
Possibility of easy imports.
Volatility in Gold Prices.
Business Strengths
Enhancing our customer Base
Modernization and Up
gradation of our
Manufacturing & Sales Process
Enhancing our Design Teams.
Hallmarked Products &
Outstanding Designs.
With the Growth of retail jewellery
brands in India, the demand for
organized suppliers have increased
and the company hope to tap this
market for increasing its customer
base across such chains
The company intends to enhance its
designing abilities to meet global
standards and to be able to gauge
the next trends in fashion before
other peers.
With the Investment in Technology the
company would able to provide quality
hallmarked products and outstanding
designs to its customers.
Currently the companies entire
manufacturing process is manual. The
company intends to enter into machine
manufacturing to reduce cost, increase
production and achieve edge over peers.
The company also intends to adapt a lot
of technology in its sales process
including building a B2B portal for its
clients.
Promoters Profile
Amrut J. Shah
Managing Director
Jawanmal M. Shah
Director
Having 20+ years of experience in manufacturing gold and
gold ornaments and handling a the entire team of people as
a business owner. Excellent understanding of the growing
trends in the country with an ability to anticipate the needs
of people. Knowledge of local and neighboring areas and a
member of a strong networking team that offers vital inputs
on business development.
Under Him Moksh has grown leaps and bounds and have
created a niche and become one of the reputed bangle
manufacturers in the country.
Have experience of more than 30 years in the Business of
manufacturing gold and gold ornaments. He Shifted to Mumbai and
started the Business of jewellery manufacturing. He has handled all
the work in order to escalate the Business. Have knowledge to
understand the quality of the products. Also have an excellent
understanding for the trends going on in the country.
He acts as a binding force for all the people in the company and
also help us with his far deeper domain experience.
Key Financial Highlights
0
100
200
300
400
500
600
700
FY-13 FY-14 FY-15 FY-16 FY-17
EBIDTA (Rs in Lakhs)
0
200
400
600
800
1000
1200
FY-13 FY-14 FY-15 FY-16 FY-17
Networth (Rs in Lakhs)
CAGR of
74%
CAGR of
108%
Key Trends
Trends Growing
Organized Retail Space
Large Scale FDI & PE
Investment.
Aggressive Marketing & Advertising
Online Retailing of Jewellery
Preference towards
Affordable Jewellery
Large Scale Shows &
Exhibitions.
Financial Ratios
Valuation: If we annualize financials of October, then the latest earning i.e EPS is 3.01
(considering number of shares post IPO ) & hence P/E at the asking price 12.26x
Peer Analysis
*PE Ratio has been calculated on market price as on 14th December 2017.
**Market Capitalisation has been calculated as on 14th December 2017.
KEY:
PAT - Profit After Tax
EPS - Earning Per Share
PE Ratio – Price to Earnings Ratio
RONW - Return on Net-Worth
NAV – Net Asset Value
MKT CAP- Market capitalisation
Objects of the Issue
Sr. No. Particulars
1. Working Capital Requirements
2. Repayment of Loan
3. Issue Expenses
Investment Rationale
• The promoters have more then 30 years of experience in the industry and the company is a well known player in the industry.
Experience & Operational History
• The company is currently working with large brands and retail chains. The current clientele include Joyalukas, Malabar Gold, Ranka jewellers, Kalyan Jewellers etc.
Working with Large Brands
• The company has been consistently growing it’s revenues, EBITDA and PAT since its inception in 2012
Consistent Financial Performance
• Major shift witnessed from unorganized to organized due to change in lifestyle, rising disposable incomes and changing preferences have resulted in the growth of organized retail. Indian jewellery market slated to grow at 18-22% in the next 5 years
Organized Player
• Gold has been traditionally well financed by all Banks at reasonably good rates Easy Finance at very low rate