Dhyaani Tile IPO: Should you subscribe?

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dhyaani Tile IPO
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ABOUT THE COMPANY:

Dhyaani Tile and Marblez Limited were initially inaugurated in 2014. The company has been involved in the manufacturing, trading, and producing of the tiles used in the floors, stairwells, bathrooms, balconies, and kitchens. Dhyaani Tile and Marblez Limited carry out their business exposure in the two offers, including Double Charge of Vitrified Tiles and Glazed Vitrified Tiles. Let’s have a look at Dhyaani Tile IPO Dates, Price, GMP, Allotment, RHP and much more.

Dhyaani Tile and Marblez Limited also hold a facility of warehouse and a physical store in Ahmedabad. The company has a comprehensive product portfolio, including rustic, textured tiles, gazed, glazed, and standard polished tiles. The company also produces tiles as per the demand and requirements of its customers. In addition, it also produces tiles in various endorsements, styles, and new-age designs. Dhyaani Tile and Marblez Limited have well-established branding and an expansion networking and distribution network.

Some of the Competitive Strengths of the company are as follows:

  • Dhyaani Tile and Marblez Limited have a widespread distribution network with a well-established brand image in their sector of operation.
  • The company has a team of very experienced management and technical staff, and Product Engineers.
  • Dhyaani Tile and Marbles Limited are verified for the Quality assurance aspect. The company is renowned for the top-quality products of its manufacturers.
  • The company also benefits a lot from its strategically beneficial manufacturing unit location and distribution network.

On the flip side, the company operates in a very competitive segment. The business of tile manufacturing is highly fragmented and includes the presence of many well-established companies and many upcoming growing buy unframed and fragmented organizations. The company also stated that its financial performance is not as per the price of the company and the valuations it expects to attain over some time. Another major threat to the company is the tiny equity post IPO. It indicates a more extended gestation period for the company’s migration process to the mainboard.

Dhyaani Tile and Marblez Limited were formed only 3 years back. The company changed its business as it was doing agro trading but is now engaged in tiles manufacturing and trading. It signifies the company’s insecurity and a new establishment that still is not solid. The company also registered an operational loss in FY19 and FY20.

OBJECTS OF THE IPO ISSUE:

  • Prepayment of all the company’s loans, which be availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.  

DHYANI TILE IPO DETAILS:

The company stated that the funds raised from the IPO Offer would be used to fund the company’s working capital. For this, the company allocated around Rs. 1.80 crores and the remaining 40 lakhs for the general corporate purpose. The IPO issue of the company constitutes around 31.58% of the total equity post issue and paid-up capital of the company. The company’s post-IPO, the current paid-up equity capital of the company of Rs. 1.04 crores will increase to Rs. 1.52 crores. On these valuations, the company’s market cap will be around Rs. 7.75 crores.

APPLY IPO WITH UPSTOX     

IPO Opening DateMarch 30, 2022
IPO Closing DateApril 4, 2022
Issue TypeFixed Price Issue IPO type
Face ValueRs. 10 per equity share
IPO PriceRs. 51 per equity share
Market LotOne lot of 2000 equity shares
Minimum Order Quantity2000 equity shares
Minimum Order PriceRs. 102,000
Maximum Order Quantity2000 equity shares
Maximum Order PriceRs. 102,000
Listing AtBSE – SME
Issue Size480,000 equity shares of the company which aggregates up to Rs. 2.45 Crores
Fresh Issue480,000 equity shares of the company which aggregates up to Rs. 2.45 Crores
Retail Shares Offered50% of the net offer
NII (HNI) Shares Offered50% of the net offer
Basis of Allotment DateApril 7, 2022
Initiation of RefundsApril 8, 2022
Credit of Shares to Demat AccountApril 11, 2022
IPO Listing DateApril 12, 2022

COMPARISON WITH PEERS:

Name of the CompanyFace ValueEPSPERoNWBook ValueSales (In Lakhs)PAT (In Lakhs)
Dhyaani Tile and Marblez Limited1036.7763.4778.99%68.261,45827
Kajaria Ceramics Ltd125.738.917.40%1282,78,10030,800
Somany Ceramics Ltd224.223.710.90%1641,65,0005,800
Orient Bell Ltd1015.932.22.62%17450,200700

Also Read : List of Mainboard IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.

FINANCIALS OF DHYAANI TILE AND MARBLEZ LIMITED IPO:

ParticularsFor the year ending with the amount in Lakhs
 30-Sep-2131-Mar-2131-Mar-2031-Mar-19
Total Assets1,808.19636.771,431.231,017.30
Total Revenue1,041.301,511.33712.77935.64
Profit After Tax24.3026.96– 7.259.76
Particulars (in Lakhs)Sep-21Mar-21Mar-20Mar-19
Sales1,0411,458713936
Purchases of Stock-In-Trade1,0351,432718936
Changes in Inventories-4519-0.03-19
Employee Benefits Expense131823
Other Expenses7622
Operating Profit31-17-914
OPM %2.98%-1.17%-1.26%1.50%
Other Income0.035400
Interest0.290.290.320.27
Depreciation0000
Profit before tax3137-1014
Total Tax Exps710-33
Net Profit2427-710
NPM %2.31%1.85%-0.98%1.07%
No. of shares15.2015.2015.2015.20
EPS in Rs1.571.77-0.460.65
PARAMETERMARCH 21MARCH 20YoY %
   Earnings Per Share (Rs)53.92-14.50471.86
   CEPS (Rs)6.74-1.81471.86
   DPS (Rs)0.000.000.00
   Book NAV/Share (Rs)68.2614.34376.01
   Tax Rate (%)26.2026.020.68
   Core EBITDA Margin (%)-1.16-1.3312.41
   EBIT Margin (%)2.53-1.33289.94
   Pre – Tax Margin (%)2.51-1.37282.29
   PAT Margin (%)1.85-1.02281.85
   Cash Profit Margin (%)1.85-1.02281.85
   ROA (%)2.61-0.59540.40
   ROE (%)130.56-67.16294.39
   ROCE (%)60.39-12.86569.42
   Asset Turnover (x)1.410.58142.18
   Working Capital/Sales (x)43.73179.54-75.64
   Receivable days250.57608.18-58.80
   Inventory Days0.009.52-100.00
   Payable days241.54582.55-58.54
   EV/Net Sales (x)0.000.12-97.49
   EV/Core EBITDA (x)0.12-8.90101.32
   EV/EBIT (x)0.12-8.90101.32
   EV/CE (x)0.010.06-88.46
   M Cap / Sales0.000.000.00
   Net Sales Growth (%)104.49-23.82538.66
   Core EBITDA Growth (%)488.40-170.43386.57
   EBIT Growth (%)488.40-170.43386.57
   PAT Growth (%)471.86-174.28370.75
   EPS Growth (%)471.86-174.28370.75
   Total Debt/Equity (x)0.0011.25-100.00
   Current Ratio (x)1.061.005.24
   Quick Ratio (x)1.060.996.63
   Interest Cover (x)126.97-29.63528.58

OPEN DEMAT ACCOUNT WITH ZERODHA

VALUATIONS OF THE COMPANY:

Through the data that has been mentioned in their DRHP, the company is currently trailing at a valuation of:

EPS – Rs. 2.59 per equity share

PE – 19.67

ROW – 78.99%

NAV: Rs. 12.47 per equity share

In the last three years, the company has reported an average EPS of around Rs. 0.95, along with an average RoNW that is around 15.74%. The company also stated that its IPO offer had been priced at a P/B value of 0.44, where the NAV of the company stands out at Rs. 116.86. The company is bringing up its IPO offer at a P/E of 15.94, which makes the IPO offer the company a fully priced bet. 

COMPANY PROMOTERS:

The promoter of the company is Mr. Chintan Nayan Bhai Rajyaguru

Pre – Issue Share Holding96.92%
Post Issue Share Holding66.32%

READ ABOUT eMudra IPO Details – Click Here

COMPANY ADDRESS:

Dhyaani Tile and Marblez Limited

420, Times Square Arcade,

Opp. Rambaug, Thaltej-Shilaj Road,

Ahmedabad – 380059

Phone: 079-41005865

Email: cs@dhyaaniinc.com

Website: https://www.dhyaaniinc.com/

DHYAANI TILE IPO REGISTRAR

KFintech Private Limited

Phone: 04067162222, 04079611000

Email: dhyaani.ipo@kfintech.com

Website: https://karisma.kfintech.com/

DHYAANI TILE IPO LEAD MANAGERS
GYR Capital Advisors Limited

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