Uma Converter Limited will raise Rs 3,600 lakhs through IPO route. The company manufactures flexible packaging material with an installed capacity of 720 metric tons per annum.
About Uma Converter Limited
Founded in 1999, the company manufactures flexible packaging material. They have a total installed capacity of 720 metric tons per annum. The company began its financial operation in 2001 with a turnover of Rs 88 lakh and since recorded a steady rise in income and operation. In 2018, they set up a second manufacturing unit in Dascroi, Ahmedabad.
Uma Converter Limited Objective
- They intend to utilise the net proceeds from the fresh issues for repayment and prepayment of certain market borrowings.
- The company will use the fund for expansion of the manufacturing unit in Timba, Gujarat.
Why should you invest in Uma Converter Limited IPO?
Here are our top reasons.
- They have developed significant business relationships with several USA and UK pharmaceutical companies for research, design, and development of a vast range of therapeutic products.
- The company has displayed resilience and increased its net turnover during the COVID-19 period in 2020.
- The company commenced export operation from unit-I in 2006 and from unit-II in 2019.
- The flexible packaging material manufactured by the company has multipurpose uses and helps it cater to the needs of various industries.
IPO Financials
| Particulars | FY21 | FY20 |
|---|---|---|
| Revenue From Operation | 10,359.10 | 10,442.93 |
| EBITDA | 1,056.77 | 1104.55 |
| EBITDA Margin (%) | NA | NA |
| Profit After Tax | 274.26 | 425.62 |
| EPS | 2.01 | 3.29 |
| ROE | NA | NA |
Know before investing
Strengths
3Their integrated business model provides all packaging solutions to customers by researching and designing suitable packaging materials.
They have a long standing business presence in providing need-based packaging solutions to PAN India customers.
They cater to customers from various industries, including food and beverage, hygiene and personal care, pharmaceutical, household, and agriculture.
Risks
3Outbreak of a global pandemic will impact the future cash flow of the company.
A slowdown of the country’s economy can impact the company’s financials in the future.
Changing laws, rules and regulations, legal uncertainties, and changes in the tax system may adversely impact the company’s future profitability.
Peer Comparison
| Company Name | Total Income (in rs million) | EPS | P/E | Dividend Yield |
|---|---|---|---|---|
| Essel Propack Ltd. | 9,552 | 4.85 | 57.81 | - |
| Uflex Ltd. | 74,316.23 | 51.21 | 17.21 | - |
| Mold-Tek Packaging Ltd. | 4,393.62 | 16.97 | 28.48 | - |
| Huhatamaki PPL Ltd. | 24,707.20 | 11.24 | 26.20 | - |
| Uma Converted Ltd. | 1,039.85 | 2.01 | NA | - |
