Elin Electronics, a major electronics manufacturing service provider, has come out with an IPO. Find out if it deserves your money.
19-Dec-2022 •Samridh Rela
About the company
It designs and develops domestic kitchen appliances, motors, tools and other appliances for original equipment manufacturers (OEMs).
Strengths:
It has entrenched relationships with its clients and has retained 11 of its top 20 clients (including the likes of Philips, Havells and Eveready) for over 10 years.
It has a diversified product base ranging from LED lighting, switches, small appliances, fractional horsepower motors, and medical diagnostic cartridges to moulded sheet metal parts.
Weaknesses:
High revenue concentration. Its top 10 clients accounted for 77.1 per cent of its revenue in FY22.
It faces significant competition from its peers, and as it does not enter into long-term purchase commitments with its clients, there's a risk of its clients switching ship.
Disclaimer: This is not a stock recommendation. Do your due diligence before investing.
Suggested read: KFin Technologies IPO
Price multiples: What are they and how to use them?
Investing lessons from the Buffett of Britain
Global Surfaces IPO: Is it worth your investment?
