Background
- Evinix Accessories Ltd. (EAL) was incorporated in the year 1996 as Evinix Fashion Accessories Private Ltd. Name of the company was changed to Evinix Accessories Private Ltd. in the year 2003. It became a public limited company on 3rd February 2006.
- EAL is in manufacturing and designing of fashion accessories and garments. It is also engaged in trading of fabrics.
- The company’s current manufacturing facility is located in Faridabad district of Haryana. This facility has an installed capacity to manufacture 20lakh fashion accessories/garments per year. Current plant capacity utilization is 80%.
- EAL is serving both in domestic and foreign markets.
- Upon completion of the issue, promoter’s holding will get reduced to 29.91%of the post issue equity share capital from current 44.44%.
- Acquisition of a garment-manufacturing unit.
- Expansion at the acquired NSEZ, Noida unit and at Faridabad unit.
- Setting up retail business activities.
- Long-term working capital requirement.
- In a span of last four years (2002-2006), the total sales have grown at a CAGR of 24.72% while its net profit increased at CAGR of 69.39%.
- Earning Before Depreciation, Interest and Tax (EBDIT) for the fiscal year 2006 was Rs. 805.44 Lakh, which increased by 81% in comparison to the last fiscal, which was Rs. 446 Lakh.
- EPS for FY06 is Rs.8.7. Post issue EPS is Rs.5.87. Post issue P/E will be in the range from 4.89-5.87 for the price band of Rs.100/- to Rs.120/-