Mohini Health IPO

Mohini Health IPO comprises  issue 4932000 equity shares of Rs.10 each  in a price band of Rs. 40 – Rs. 42 per share to mobilize ~ Rs. 20.71 crore. Mohini Health & Hygiene Ltd is Pithampur (MP) based company engaged in the business of manufacturing and export of absorbent cotton and medical consumable products. Company caters to  both domestic and international markets. 

Mohini Health  IPO Details: 
SymbolMHHL
Issue Period05-Feb-2018 to 07-Feb-2018
Issue Size 49,32,000 Equity Shares 
 ( 19.73 Crore)
Price RangeRs 40 to Rs 42
Face ValueRs 10
Tick SizeRs 1
Market Lot3,000 Equity Shares 
BRLMsPantomath Capital Advisors Limited and Small Industrial Development Bank of India (SIDBI)
CategoriesFI, IC, MF, FII, OTH, CO, IND, and NOH
RegistrarLink Intime India Private Limited
Listing NSE SME
About Mohini Health & Hygiene Limited:
  • Incorporated in 2009,  Mohini Health & Hygiene Limited is engaged in manufacturing and export of absorbent cotton and medical consumable products. 

  • Tits manufacturing facilities are situated at Pithampur, Madhya Pradesh.and include machinery, Effluent Treatment Plant, boiler and handling equipments etc. 

  • Company is promoted by Avnish Bansal and Sarvapriya Bansal. 


    Major products of company are: 

    1) Absorbent Bleached Surgical Cotton
    2) Absorbent Cotton Wool
    3) Cotton Balls
    4) Cotton Ear Buds
    5) Cotton Zig Zag

Mohini Health: Financials: 
(Amount in Lakhs)
ParticularsHY182017201620152014
Revenue from operations8237.0613588.7312201.429093.994867.25
Other income279.63184.22107.999.621.85
Total Revenue (I + II)8516.713772.9612309.419103.614869.1
Profit before  tax 485.61385.6424.4254.15107.17
IX. Profit before tax 485.61385.6424.4254.15107.17
XI. Profit  after Tax364.06339.31380.71192.5973.06
Equity Capital373.19205.09
NAV95.09
Face Value1010
EPS9.7616.541,82,35,900
Post Issue Equity1823.59
IPO Price42
Face Value10
Price/Book Value0.44
EPS Post Issue (on Fy17 earnings)1.86
EPS annualized HY183.99
PE – (Fy 17 Earnings)22.57
PE Annnualized HY 1810.52
CAGR Sales 3 Yrs41.43%
CAGR Net Profit 3 Yrs66.84%
Market Cap7659.08Lakhs   
Market cap / Sales0.56   
Rationale for Investment
  • Company  has a good track record of growth in sales and Profits for the last five years.
  • The Company operates both in domestic and international markets and has been awarded as Star Export House by Office of the Joint Director General of Foreign Trade.
  • Mohini Health revenue comes from variety of countries (Italy, Poland, Latvia  are main customers) and its sales are  spread throughout the country (MP & Gujarat account for major sales). 
    EXPORT AND DOMESTIC SALES HY18
    EXPORT SALES
    CountryAmount (Rs in Lakhs)
    China33.03
    Germany54.56
    Greece156.63
    Italy835.15
    Latvia774.84
    Philiphines87.94
    Poland1977.2
    Russia235.96
    Spain202.56
    Sri Lanka18.22
    Mexico62.05
    Sub Total4438.15
    DOMESTIC SALES
    StateAmount (Rs in Lakhs)
    Andhra Pradesh33.89
    Bihar1.03
    Chhattisgarh49.47
    Delhi0.03
    Gujarat907.66
    Himachal Pradesh0.22
    Jharkhand1.51
    Kerala4.35
    Madhya Pradesh2384.42
    Maharashtra148.34
    Manipur1.52
    New Delhi10.52
    Puducherry1.78
    Rajasthan33.8
    Tamil Nadu4.03
    Uttar Pradesh7.35
    Uttarakhand0.81
    West Bengal7.31
    Sub Total3598.61
    Total8036.18
  • Mohini Health has  been issued Certificate of Compliance from UK Certification & Inspection Limited and has been inspected and assessed according to the Global Organic Textile Standard by One Cert International Private Limited.
Risks & Concerns:
  • Mohini Health is exposed to foreign currency exchange rate fluctuations
  • Increase in the prices of its basic raw material i.e. raw cotton could raise our manufacturing costs and could adversely affect its profitability.
  • Tepid market conditions could result in lower valuations
Mohini Health IPO: Assessment
    • From FY 2012-13 to FY 2016-17, Mohini Health has shown revenue growth from Rs. 4145.56 lakhs to Rs. 13772.96 lakhs, representing a CAGR of 35%.
    • Its profit after tax has shown growth from Rs. 64.37 lakhs to a profit of Rs. 339.31 lakhs representing a CAGR of 51.5%.Mohini Health is Expanding their Product Portfolio and many products like Hand Sanitizer, Liquid hand wash, First Aid Kit, Surgical Gloves etc. are planned.
    • A wide range of customers and a  wide product basket that company is planning to add will increase the turnover in the coming years.
    •  I may  apply in the Mohini Health IPO with 1-2 applications due to good growth exhibited by the company in past with reasonable profitability and  potential due to planned launch of new products. However I will keep a watch on subscription which could be low due to market conditions and if subscribed minimum 2-3 times, I shall put in 1-2 applications
    • Any sharp downswing in markets as seen post budget may impact the listing price and hence at this stage listing gains are not assured  

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. I may have vested interest in every stock I discuss and my views may be biased. Please do your own due diligence as stock market investments have high degree of inherent risk.