The consumer durable manufacturing company is involved in manufacturing air coolers and geysers. It operates under the original equipment manufacturer (OEM) and original design manufacturer (ODM) models, offering end-to-end product solutions to its customers.
Under the OEM model, the company manufactures and delivers products according to the specifications provided by clients. However, under the ODM model, it also offers conceptualisation and design solutions for the products to be marketed by its clients. The company’s four departments consist of:
- Production
- Moulding
- Administration
- Logistics
The company was incorporated in 2017, and since then, it has expanded its product portfolio and customer base. It has a manufacturing facility located in Palghar, Maharashtra.
It acquired M/s Troupe Technologies Pvt. Ltd. (TTPL) in 2021.
Comrade Appliances Limited IPO Details
Comrade Appliance has launched a DRHP to raise Rs. 12.30 crore from the market. The issue will contain fresh equity shares with a face value of Rs. 10. It is scheduled to open for bidding on May 31, 2023.
The book-building IPO price is set at Rs. 52–54 per share. Retail investors must apply for one lot with 2000 shares.
Comrade Appliances Limited IPO Objective
The objectives of Comrade Appliances Limited's IPO are listed below.
- To meet working capital needs
- For general corporate purposes
Should you invest in Comrade Appliances Limited?
Here are some critical reasons to consider before investing in the IPO:
- The company manufactures and markets various air coolers and geysers under the brand, Comrade.
- It works in both OEM and ODM models to diversify revenue streams.
- Comrade Appliances has forged robust, long-term relationships with top-tier customers.
Competitive Peers
Other listed players in the domain as recognised by the company in DRHP are Dixon Technologies (India) and PG Electroplast Ltd.
Company Financials
| Particulars | Year ending on August 31, 2022 (₹ Lakh) | Year ending on March 31, 2022 (₹ Lakh) |
|---|---|---|
| Profit After Tax (PAT) | 1,555.36 | 2,964.89 |
| Profit After Tax (PAT) | 100.45 | 38.77 |
| EBITDA | 220.43 | 293.60 |
| EPS | 1.94 | 0.99 |
Know before investing
Strengths
3Strategically located manufacturing unit with an easy supply of raw materials.
A constant focus on R&D.
A dedicated and efficient team of professional technicians helped build a diversified product portfolio.
Risks
3There are outstanding legal proceedings against the promoters, directors, and groups of companies. The verdicts in these cases can impact the business.
The business is seasonal in nature. Sales rise during the summer.
The underutilisation of production capacity in the previous fiscal years is a challenge for the company.
