Why
Avoid
Negative cash flow from generations
Valuations
Issue Details
| Issue Opens | 29th Feb 2024 |
| Issue Closes | 4th Mar 2024 |
| Price Band | Rs. 26 – Rs. 28 |
| Issue size (Upper Band) | Rs. 224 Cr |
| Issue Type | FRESH ISSUE |
| Market cap (based on upper band) | Rs. 840 Cr |
| Sales- March 2023 (Rs./Crs) | 1184 Cr |
| Net Profit - March 2023 (Rs./Crs) | 48 Cr |
| Industry | FMCG |
| Promoters | KALANDAN MOHAMMAD HARIS |
| Lead Manager | FEDEX SECURITIES |
Objectives of the Issue – Fresh Issue – Rs. 224 cr
The Objectives of the Offer are for:
1. Funding Working Capital Requirements
2. General corporate purposes
Mukka Proteins is a manufacturer of fish protein products, the company produces and supplies fish meal, fish oil, and fish soluble paste, which are essential ingredients in the manufacturing of aquafeed (for fish and shrimp), poultry feed (for broiler and layer), and pet food (dog and cat food). Additionally, fish oil finds applications in pharmaceutical products, with Omega-3 pills and related items derived from fish oil gaining importance as high-nutrient and healthy dietary supplements. The company's products are also utilized in soap manufacturing, leather tanneries, and paint industries.
The company serves both domestic and international markets, exporting its products to over 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam.
| Revenue Breakdown by Segment: | ||||
|---|---|---|---|---|
| Product | H1FY24 | FY23 | FY22 | FY21 |
| Fish Meal | 86% | 82% | 92% | 91% |
| Fish Oil | 9% | 14% | 4% | 6% |
| Fish Soluble Paste | 5% | 2% | 4% | 3% |
The company’s revenue has grown at 39% over the last two years while the net profit grew by 108% CAGR
In FY23, The company’s Return on Capital Employed was 18%
The Net profit margin of the company is 4% in FY23, showing improvement from FY21 when it was 2%
The company reported positive CFO in FY21 and FY22 but reported negative cash flow from operations in FY23 and the same trend followed in H1FY24
The company has a debt of Rs 317 crore as of September 2023
| Rs./Crs | H1FY24 | FY 23 | FY 22 | FY 21 |
|---|---|---|---|---|
| Sales | 613 | 1184 | 776 | 610 |
| Net Profit | 33 | 48 | 26 | 11 |