The company processes natural stores and manufactures engineered quartz. They have two product units located in Jaipur, Rajasthan.
Natural stone harvesting involves a complex geographical process and is desired for uniqueness, aesthetic appeal, texture, colour, and composition. On the other hand, granite is used widely as a kitchen countertop. The products from Global Surface have wide applications in flooring, wall cladding, countertops, cut-to-size, and other items.
The company exports to the United States of America, Canada, Australia and the Middle East, deriving 99% of its revenue from the export business.
Global Surfaces Ltd. IPO Objective
- The fund raised by selling fresh equity shares will be utilised to invest in the wholly owned subsidiary and part financing constructing another manufacturing unit in the Jebel Ali Free Zone, Dubai, United Arab Emirates (UAE).
- General corporate purposes.
Why should you invest in Global Surfaces Ltd. IPO?
Here are your top reasons for investing in the IPO:
- They have transitioned from a single-stone to a multi-stone manufacturing company, offering a diversified product portfolio.
- Exports constitute 99.13% of their operating revenue in FY22. In international markets, they primarily cater to the United States of America, Canada, Australia, and the Middle East.
- They have dedicated in-house R&D teams for developing new products and designs to cater to the diversified customer base.
Global Surfaces Company Financials
| Parameters | Period Ending on September 30, 2022 (₹ lakhs) | Year ending on 31st March, 2022 (₹ lakhs) |
|---|---|---|
| Revenue from operation | 1903.13 | 1753.71 |
| Profit After Tax | 356.34 | 339.32 |
| EBITDA | 418.04 | 474.33 |
| EBITDA Margin | 21.97 | 27.05 |
| EPS (Basic) | 10,52 | 10.02 |
| Period Ended | Year ending on As on 31st March, 2022 | Year ending on As on 31st March, 2021 |
| Current Asset | 1,161 | 876.77 |
| Current Liabilities | 491.21 | 528.86 |
Know before investing
Strengths
3They have robust financials with revenue from operation and profit recording growth in the past three fiscals.
The company is expanding to new international markets.
They have robust financials with revenue from operation and profit recording growth in the past three fiscals.
Risks
3The top ten customers contribute the majority of revenue.
They don’t have long-term agreements with their customers and suppliers, which can impact future profitability.
It is an export-driven business. Hence, international market conditions can directly impact the company’s profitability.
