Inox
CVA was s Incorporated in 1976, Inox India Limited
manufactures and supplies cryogenic equipment. Inox CVA, a part of the global Inox Group, is a leading
Indian manufacturer of cryogenic equipment, primarily focused on transportation
and storage solutions for liquefied gases like LNG, hydrogen, and oxygen. The product portfolio includes standard cryogenic
tanks and equipment, beverage kegs, bespoke technology, equipment and solutions
as well as large-scale turnkey projects used in various industries such as
industrial gases, liquefied natural gas ("LNG"), green hydrogen,
energy, steel, medical and healthcare, chemicals and fertilisers, aviation and
aerospace, pharmaceuticals and construction.
In the six months to September
30, 2023, and the financial years 2023, 2022 and 2021, the company supplied its
equipment and systems to 1,255 domestic and 254 international customers in our
three business segments.
The company's major customers
include Air Liquide Global E&C Solutions India Private Limited, Caribbean
LNG Inc, 2G Energy Inc, ISRO, Hyundai Engineering and Construction Co Ltd and
many others.
As of September 2023, the
company has exported products and services to 66 countries, including the
United States, Saudi Arabia, the Netherlands, Brazil, Korea, the United Arab
Emirates, Australia and Bangladesh.
The company's manufacturing
facilities are located in Kalol, Kandla Special Economic Zone (Kandla SEZ) and
Silvassa in the Union Territory of Dādra and Nagar Haveli.
Products & Services:
·
Transport Tanks: Inox CVA manufactures
trailer-mounted cryogenic transport tanks for various
applications, including LNG transportation for energy needs, hydrogen
transport for fuel cell vehicles, and oxygen transport for medical and
industrial uses.
·
Storage Tanks: The company offers a
range of cryogenic storage tanks for various capacities and
applications, catering to sectors like chemical processing, food and
beverage, and healthcare.
·
Engineering & Design: Inox CVA
provides customized engineering and design solutions for cryogenic
equipment, tailoring tanks and systems to specific customer requirements.
·
Services: They offer after-sales
services like maintenance, repair, and refurbishment for their
cryogenic equipment.
Key Strengths:
·
Experienced & Reputed: As part of
the Inox Group, Inox CVA leverages over 40 years of experience and a
strong reputation in the cryogenic industry.
·
Wide Product Portfolio: They offer a
diverse range of transport and storage tanks, catering to various
industries and applications.
·
Technological Expertise: Inox CVA
focuses on innovation and invests in research and development, ensuring
their equipment meets the latest industry standards and safety regulations.
·
Focus on Sustainability: The company
actively promotes sustainable solutions like hydrogen and LNG
transportation, contributing to environmental goals.
Recent Developments:
·
Inox CVA successfully launched India's
first trailer-mounted hydrogen transport tank in collaboration with ISRO
(Indian Space Research Organisation).
·
They recently filed for an Initial Public
Offering (IPO) on December 14, 2023, aiming to raise funds for
expansion and further growth.
Potential Opportunities:
·
The growing demand for LNG and hydrogen as
cleaner energy sources presents a significant opportunity for Inox CVA's
transportation solutions.
·
Increasing awareness of cryogenic
technology and its applications in various sectors could drive further demand
for their storage tanks.
·
The company's focus on innovation and
sustainability can attract environmentally conscious customers and investors.
Potential Risks:
·
The cryogenic equipment market is
relatively niche and subject to economic fluctuations.
·
Dependence on a few key
industries, like energy and healthcare, could impact their
performance if these sectors experience downturns.
·
Competition from established players and
potential new entrants in the cryogenic equipment market could pose challenges.
Inox CVA IPO Objectives
- Carry out the Offer for Sale of up to 22,110,955
Equity Shares by the Selling Shareholders.
- Achieve the benefits of listing the Equity Shares on
the Stock Exchanges. Further, the Company expects that the proposed
listing of its Equity Shares will enhance the visibility and brand image
as well as provide a public market for the Equity Shares in India. The
Selling Shareholders will be entitled to the entire Offer proceeds after
deducting the Offer expenses and relevant taxes.
Revenue and Growth:
·
Revenue: Inox CVA's revenue has grown steadily over the past three
years, reaching ₹1,459.32 crores in FY23. This represents a CAGR (compound annual growth rate)
of 23%.
·
Profitability: The company has also witnessed impressive profit growth. Net
profit in FY23 stood at ₹205 crores, reflecting a CAGR of 42%.
·
Profitability
Ratios: Inox CVA boasts healthy
margins, with an EBITDA margin of
over 20% and a net profit margin of almost 18%. These figures indicate strong operational efficiency and
profitability.
Financial Strength:
·
Debt: The company maintains a manageable debt burden, with a debt-to-equity ratio of around 0.6. This indicates they are not overly reliant on debt for funding their
operations.
·
Cash Flow: Inox CVA has consistently generated positive free cash
flow, providing them with flexibility for future investments and dividend
payouts.
Valuation:
·
P/E Ratio: Inox CVA currently trades at a price-to-earnings (P/E) ratio of around 50, which is
higher than the average for its peers. This premium valuation reflects the
company's strong growth potential and solid financial performance.
·
Investment Risk: However, some analysts believe the stock may be overvalued due
to its high P/E ratio. Additionally, the company's dependence on the
cryogenic equipment market, which is subject to cyclical
trends, could pose a risk.
|
Name |
Price band |
IPO start |
IPO end |
Allotment |
Listing |
GMP |
|
Inox CAV |
627-660 |
14/12/2023 |
18/12/2023 |
19/12/2023 |
21/12/2023 |
455 |
https://markettalkshop.blogspot.com/
#ipotowatch #inoxcvaipo #inoxindiagmp
#nse #Indianstockmarket #nifty #nse #bse #nsebse #Option #future #index
#Ipoinvestment #sharemarketinvestment # where to invest
in share market today
No comments:
Post a Comment