Emmforce Autotech is engaged in the business of manufacturing niche automotive drivetrain parts like Differential Housings, Differential Lockers, Differential Covers,4WD Locking Hubs, Spindles, Axles and Shafts, Gear Shifters, Yokes, Differential Spools, Differential Tools and various differential forged/cast parts primarily for 4-wheel Drive and performance racing vehicles.
The company has been engaged in exports ever since its inception. It has established itself as a manufacturer of Drivetrain Parts in India and is a one-stop shop for quality and cost-competitive drivetrain parts as well as out-of-the-box solutions to its customers.
Due to the prospects of robust development in all vehicle industry segments, the auto component sector may see double-digit growth in FY22. The industry is expected to reach a size of $200 billion by FY26. This expansion of the industry can help Emmforce to grow simultaneously as well.
Industry Outlook
- The Indian auto component industry witnessed exceptional growth, reaching a turnover of $69.7 billion in FY 2022-23, marking a remarkable 33% increase. With the industry expected to grow to $200 billion by 2026, Emmforce Autotech Limited stands to benefit from this upward trajectory, tapping into a flourishing market.
- Policy initiatives such as 100% FDI allowance and the Production Linked Incentive (PLI) schemes provide a conducive environment for growth. With PLI schemes targeting a doubling of the auto industry size to INR 15 lakh crore by 2024, Emmforce Autotech Limited stands to benefit from increased investment, technological advancements, and enhanced manufacturing capabilities.
Emmforce Autotech Ltd IPO Details
Emmforce Autotech Ltd IPO Dates
Emmforce Autotech Limited's IPO starts on Tuesday, April 23 and ends on Thursday, April 25. You can find it listed on BSE SME.
Emmforce Autotech Ltd IPO Price Band
Emmforce Autotech Limited is a book-built issue. The price band is set at ₹93 to ₹98 per share.
Emmforce Autotech Ltd IPO Lot Size
The lot size for Emmforce Autotech Limited’s IPO is 1,200 shares with a minimum investment of ₹117,600.
Emmforce Autotech Ltd IPO Objectives
The company plans to allocate the net proceeds from the issue for the following purposes:
- Investment in a subsidiary company, i.e. Emmforce Mobility Solutions Private Limited (EMSPL) in the form of equity or debt for meeting the requirement of working capital and margin money for term loan of the subsidiary company.
- To meet the working capital requirement of the company.
- Allocate the remaining Net Proceeds for general corporate purposes.
Peer Details
Divgi Torqtransfer Systems Limited is the listed peer of Emmforce Autotech Limited.
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Contact Details of Emmforce Autotech Ltd
Registered office: Plot No. 287, Industrial Area, Phase II Industrial Estate, Panchkula- 134113, Haryana, India
Phone: +91- 9876009999
E-mail: info@emmforce.com
IPO Financials
| Particulars | Year Ending on March 31, 2023 | Year Ending on March 31, 2022 |
|---|---|---|
| Total Income (in ₹ lakh) | 4,875.32 | 7,138.13 |
| Profit After Tax (PAT) (in ₹ lakh) | 438.85 | 732.58 |
| Cash and Cash Equivalents (in ₹ lakh) | 0.74 | 0.53 |
| Return on Net Worth (%) | 18.71 | 34.41 |
| Return on Equity (%) | 19.62 | 40.10 |
| Return on Capital Employed (RoCE) (%) | 34.34% | 56.61% |
| EBITDA (in ₹ lakh) | 955.04 | 1,295.87 |
Know before investing
Strengths
2The company’s existing customer relationships go as far as almost two decades, helping them get repeat business from their customers. This has helped them maintain a long-term working relationship with their customers and improve their customer retention strategy.
They manufacture a wide variety of drivetrain parts under one roof. Buying a variety of parts from one supplier, like Emmforce Autotech, helps save a lot of logistics costs and reduces the management bandwidth for the customer, thus making them the preferred supplier.
Risks
2They are heavily dependent on the performance of the Automobile sector, particularly passenger vehicles, commercial vehicles and engines.
They depend on third parties for the supply of raw materials and delivery of products and such third parties could fail to meet their obligations, which may have a material adverse effect on their business, results of operations and financial condition.
