Company has been a recent listing in the SME platform. Decent debt free company with market cap in the 20 odd crore range.Now about the businesses-They are mainly into the manufacturing of textile machines.Incorporated in 2006, Meera Industries Ltd (MIL) is engaged in the manufacturing of Yarn Twisting, Winding and Heat-Setting Machine for textile industries. Company’s products are sold under the brand name “MEERA”.MIL cater to the domestic market as well as Exports the products to continents like America, South America, Africa, Europe and Asia and major countries like Germany, Spain, Turkey, Thailand, Belgium, USA etc. They have government recognized in-house R&D Center by Department of Scientific and Industrial Research, Government of India located within the manufacturing unit.
 
– 1 plant in Surat speard over 1.6 acre appx.Has the capacity to do 30cr of revenue at full capacity. Did 13.45cr of revenue , up 64% yoy.Did 1.75cr of EBIT…almost 13% margin, up 75%. Did 1.06cr of PAT..almost 8% margin, up 158%
 
What I like about this co:-
 
– 1st generation entrepreneur who does business the way I would. No debt. Day receivable only 27 days. Double digit operating margins. 
 
– All this at a plant which is currently operating at 45% capacity…full operating leverage yet to play out.
 
– Part of the IPO will be used to setup a showcase yarn manufacturing center using their own machines. This will work as a demo place as well as an independent profit centre.
 
– Co. has also planned a similar forward integrated setup in USA. They have won several awards for R&D.Out of 3.83 EPS, dividend payout was 1/- more than 25%
 
 Valuation projection:- By 2020, I expect revenue at 50cr (30cr machinery + 20cr yarn ), with blended 12% net magin. 15 EPS and with three years horizon in mind you can arrive at the target which Kinda would be way above the present market price.

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