Published: 18th July 2024
By: Value Research
It is a plant-based specialty manufacturer of food and animal nutrient ingredients. Its maize-based products are used as food thickening agents, stabilisers and additives, among others.
Total IPO size ( Rs cr) 510 Offer for sale (Rs cr) 113 Fresh Issue (Rs cr) 397 Price Band (Rs) 90-95 Subscription dates July 19, July 22 and July 23, 2024 Purpose of issue Funding capex, repayment of debt
M-cap (Rs cr) 1,731 Net worth (Rs cr) 613 Promoter holding (%) 70.4 Price/earnings ratio (P/E) 25.8 Price/book ratio (P/B) 2.8
Key financials 2Y growth (% pa) FY24 FY23 FY22 Revenue (Rs cr) 45.5 1067 1205 504 EBIT (Rs cr) 66.6 86 61 31 PAT (Rs cr) 104.6 67 42 16 Net worth (Rs cr) 216 149 49 Total debt (Rs cr) 128 112 85
Ebit is earnings before interest and tax PAT is profit after tax
Key ratios 3Y average (%) FY24 FY23 FY22 ROE (%) 30.5 30.9 28 32.5 ROCE (%) 24.2 25.4 23.8 23.2 EBIT margin (%) 6.5 8.1 5.1 6.2 Debt-to-equity 1 0.6 0.8 1.7
ROE is return on equity ROCE is return on capital employed
Sanstar operates on a large scale and has a solid rapport with its clients. About 89% of the company’s orders in FY24 came from recurring customers.
Maize prices have a huge influence on the company’s profit metrics. To read about the risk factors in detail, check our full analysis from the link below.