Dealer Research
February 22, 2021 / 04: 43 PM IST
KR Choksey IPO document on Heranba Industries
Heranba Industries is a cleave protection, chemical manufacturer, exporter and marketing firm. It started its manufacturing operation in 1996 with manufacturing of an Intermediate product CMAC. Heranba manufactures Intermediates, Technicals and Formulations and is one of many leading home producers of synthetic pyrethroids esteem cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda cyhalothrin and so on. Heranba has a network of ~9,400 dealers and earn entry to to 21 depots and caters to 16 states and one union territory of India. Heranba has in-dwelling R&D group for product trend and improvisation. Its R&D facilities at Unit I and II are acknowledged by the Department of Scientific and Industrial Research, Ministry of Science & Technology, Authorities of India (DSIR) and its unique R&D facility at Unit III, Sarigam has change into operational from October, 2020. Heranba has 18 Technicals registered for manufacturing and gross sales in India, 167 Plan registered for gross sales in India and 93 Technicals & Plan registered for manufacturing and gross sales in export markets.
Valuation and Outlook
Given increasing Indian agrochemical market alongside with Heranba’s increasing geographical footprint, further scope to expand its capability on unique on hand land, debottlenecking of unique facility, unique product pipeline and better return ratios when put next with its peers, we ask the IPO to be somewhat priced at 25.7x FY20 EPS and hence present a “SUBSCRIBE” score on the inventory.
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