IPO Analysis of New Swan Multitech Ltd

Tanushree Jaiswal Tanushree Jaiswal Tanushree Jaiswal 10th January 2024 - 02:24 pm
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What they Do?

 

Additionally, they develop and produce a variety of brackets, including floor panel brackets, fuse block brackets, exhaust tailpipe brackets, cooling recovery reservoir brackets, and passenger vehicle air cleaner inlet hose brackets.
The firm produces a wide range of farming tools, including laser land levellers, disc ploughs, fertilizer spreaders, mulchers, puddlers, weeders, potato planters, potato diggers, and rotovators.

Where are the Facility is located?

New Swan Multitech Financial Summary

Analysis

1. Assets
The company's assets have shown a consistent upward trend over the three years, increasing from 11,770 to 12,876. This suggests that the company is investing in its operations and potentially expanding its asset base.

2. Revenue
Although the revenue slightly decreased from 14,961 to 14,552 in the second year, there was a recovery in the third year with revenue increasing to 15,142. This indicates resilience and adaptability in the face of challenges, as the company managed to rebound and generate higher revenue.

3. Profit After Tax
The Profit After Tax has shown a significant improvement over the three years, rising from 343 to 992. This signifies effective cost management, improved operational efficiency, or potentially successful business strategies contributing to higher profitability.

4. Net Worth
The Net Worth of the company has experienced a steady increase from 1,627 to 2,982. This demonstrates a positive trend in the overall financial health and value of the company. Shareholders may find this increase favorable as it indicates growth in their equity.

5. Reserves and Surplus
Reserves and Surplus have also seen a consistent growth pattern, increasing from 1,277 to 2,632. This could be due to retained earnings, which suggests the company is reinvesting profits back into the business for future growth or to strengthen its financial position.

6. Total Borrowing
The company's Total Borrowing decreased from 4,581 to 3,916. A reduction in borrowing can be positive as it indicates the company is managing its debt levels effectively. Lower debt can lead to reduced interest expenses, providing more financial flexibility.

New Swan Multitech Peer Comparison

Analysis

1. Earnings per Share (EPS): New Swan Multitech has a lower EPS compared to the peer group average. This may indicate that the company's profitability on a per-share basis is not as strong as its peers on average.

2. Price-to-Earnings (P/E) Ratio: Since the P/E ratio for New Swan Multitech is not available, it is challenging to assess its valuation compared to peers. Investors typically use the P/E ratio to evaluate the relative value of a company's stock.

3. Return on Net Worth (RoNW): New Swan Multitech has a higher RoNW compared to the peer group average. This suggests that the company is more efficient in generating returns on its equity, which can be a positive indicator for investors.

In summary, the company appears to be in a healthy financial position. The growth in assets, revenue, and profitability, coupled with a reduction in total borrowing, suggests sound financial management. Shareholders may be pleased with the increase in net worth and reserves, indicating the company's ability to generate and retain value. However, it's essential to consider industry benchmarks and economic conditions for a more comprehensive financial analysis.

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