Yug Decor - a BSE SME Stock from Adhesives and Paints


(Satya Prakash) #1

Yug Decor is a fresh stock listed on BSE SME. It is listed in 2017. IPO Closed on : 23-May-2017.

Mcap is 11.68 Cr.

Lot size 4000 shares.

2015-2016: Sales:
Manufacturing: 1,475.44 Lakh, and
Trading: 288.52 Lakh.

Profit From 2016 to 2012:
10.08, 5.02, 4.07, 4.05, 3.23.

Shareholding:
Public shareholders holding shares upto rs 2 lakh = 17 persons holding 0.72%.

Public shareholders holding shares in excess of rs 2 lakh = 20 persons holding 17.33%.

This is a Public Issue of 11,08,000 Equity Shares of Rs 10 each at a price of RS 26 per Equity Share aggregating Rs 288.08 Lacs.

81.95% is held by Promoters group.
Rest 18.05% is held by public.

Valuation:
If taken weight-age average (Over few years prior to listing) for EPS then EPS = 0.32.
From April 2016 to Nov 2016, EPS = 1.25.

Price to earning is very high. It is near 80 based on weight-age average. If I take Nov, 2016 EPS then it is PE ~ 20.

Capacity Utilization:
At present we operate at approx. range between 30% to 70% of our installed capacity.
Currently we are utilizing our working capital facility at the optimum level and in order to increase the operational production capacity we need to pump the additional working capital.

Our Company has its own manufacturing unit at the following location-

Plant Locations and Output:

Unit I- Plot No: 832, Kothari Estate, Near Kothari Cross Road,
Vil: Santej, Tal: Kalol, Dist: Gandhinagar

ADHESIVES WATER BASE
PVA Based Binder
PVA Based Adhesives
LAI (Starch Based Solution).

Unit II - Plot No: 734/3, Opp. Nilkanth Hotel, Rakanpur, Tal:
Kalol, Dist: Gandhinagar.

ADHESIVES SOLVENT BASE
Resin Solution
Rubber Adhesives.

Unit III- Plot No: 734/7, Opp. Nilkanth Hotel, Rakanpur, Tal:
Kalol, Dist: Gandhinagar

PAINTS
Distemper, Cement Primer/Wall
Emulsion
(Surface Coating)
Melamyne (Wood Touch)
Magic Touch (PU)
Enamel and Automotive Paints
Enamel
Automotive Paints.

Raw Materials:
The majority of raw material required in our manufacturing process of adhesive(chemicals) are VAM, PVA, Starch
Powder, Acetone, Toluene, Hexane, Resins, Rubber, Calcite, China clay, Xylene, Pigments etc.
Raw materials are easily available from nearby as plant is in industrial zone.

The requirement of water is fulfilled by arrangements of water tankers which are available in nearby locations of
our manufacturing units.

Products and Brand names: Some name I ignored.

YUG-COL - Wood Glue, and
YUG-COL - Marine.
YUG-COL – Ultra.
YUG-COL - Ultra – D3

RUBBER BASED ADHESIVES
YUG-COL - SR – 99
YUG-COL - SR – 55
YUG-COL - SR – 44

WOOD POLISHING PRODUCTS
Wood touch – MELAMYNE - Provides your wooden furniture with a Glass-like finish, giving it a look of
ultimate quality & luxury.

Magic Touch -

ABHA Superior Interior Emulsion -

The exquisite emulsion paint that provides a luxurious finish and a silky glowing appearance to your walls.

Ankita Acrylic Distemper -

can be applied on ceilings and wall surfaces where a smooth matt finish is desired with an economic advantage and
is recommended for interior use only

WALL PRIMER

Yug Coat Premium Grade Wall Primer (Water Thinnable) gives superior adhesive and better performance of the
paint film.

Details about Yug Decor Products and Brands.

Profit After Tax:
April 1 to Nov 2016 = 16.35
March 2016 = 10.08
March 2015 = 5.02
March 2014 = 4.07
March 2013 = 4.05
March 2012 = 3.23

Net Worth at the end of the year:

April 1 to Nov 2016 = 353.12
March 2016 = 188.35
March 2015 = 164.26
March 2014 = 145.63
March 2013 = 120.62
March 2012 = 94.57.

Total Debt:
Nov 2016 = 171 Lakh
March 2016 = 271 lakh.

Total Equity:
Nov 2016: 353.12
March 2016: 188.35

Total Debt / Equity Shareholders’ funds:
Nov 2016: 0.49
March 2016: 1.44.

Overall, I cannot say that it is an unique company from BSE SME space. But as SME, it is profitable from few years and 2016 was a better year. This is not a small advantage. If you are looking from adhesive space then you can look further into it.

Yug Decor’s Prospectus from where I collected most of the data.

Small buying has happened in past month in insider trading. 60,000 shares has been purchased by Promoter’s relatives and directors.

CMP: Rs 28.80.

Disclosure: I entered here with 1 lot recently. At Rs 28.


How do I research BSE and NSE SME stocks?
(tejas75) #2

R u wkg with Co. In yr write up it is written as OUR company. Pls disclose yr connections with company.


(Satya Prakash) #3

That line I took from PDF and pasted. PDF link is mentioned there.


(Satya Prakash) #4

Is it allowed to hold more than 75% by promoters of SME companies!


(sko5prasad) #5

Does the SME stocks available in lot wise, if one wanted to take position. If yes, what is the lot size in this case?


(Satya Prakash) #6

It is 4000 shares for Yug Decor.


(Satya Prakash) #7

Yug Decor has declared result till March, 2017.

Result is mixed. Sales little down but is profit up.
I think, deMo affect can be there too. So, result is ok and the SME is worth watching.Yug-decor-march-result.pdf (1.5 MB)


(Satya Prakash) #8

As a disclosure:
I am out from this at Rs 32. Market is very volatile due to geo-political situation and this stock was my first taste of SME.
Gained 13%.


(Satya Prakash) #9

In very small quantity but still promoters are buying. So, that support is there.


(Satya Prakash) #10

Till this time, promoters have bought 80,000 shares. If I take Rs 32 per shares as avg then it is Rs 25.6 Lakh investment. Not a big amount but for this small company, this is measurable. CMP: 38.5.


(Satya Prakash) #11

My first pick from SME is a success. Given superb return in very short time period. Though I existed earlier thinking not to take risk in my first SME stock.
Picked at Rs 28.8 and reached the high of Rs 48 recently.

I should start filtering SME again! :slight_smile:


(AmitContrarian) #12

Why promoters are buying ? Isn’t it strange you do IPO then start buying from markets.


(Satya Prakash) #13

May be they are earning money from somewhere and putting money as and when
chance are coming.