IPO Analysis of Deem Roll Tech Limited

About Deem Roll Tech Ltd

Deem Roll Tech Limited was founded in May 2003 & exports steel & alloy rolls to over ten nations, including United States, Germany, Europe, Middle East, Oman, Saudi Arabia, South Africa, Nepal, & Bangladesh. firm has served over 340 domestic clients & 30 export customers as of September 30, 2023.

Three production units make up company: first is in Mehsana, Gujarat; second is in Dadpur, Hoogly, West Bengal; & third is in Ahmedabad, Gujarat. engineering & design, mold-making, melting, casting, machining, dispatch, & other departments make up production unit. Each of these sections is backed by appropriate equipment for quality control & testing.

By March 31, 2023, business will have produced over seven kind roll.

Deem Roll Tech Ltd Analysis 

Analysis & Interpretations

Assets
1. Deem Roll tech’s assets of company have shown consistent growth trend over past few periods, reaching 9,826 Lakh at end of September 2023, compared to 8,263 Lakh at end of March 2022.
2. This indicates that company is investing in its operations & possibly expanding its asset base.

Revenue 
1. There's noticeable decrease in revenue from 10,449 Lakh at end of March 2023 to 5,028 Lakh at end of September 2023.
2. Such decline in revenue might be cause for concern & warrants further investigation into reasons behind decrease.

Profit After Tax (PAT) 
1. PAT has also decreased from 692 Lakh at end of March 2023 to 372 Lakh at end of September 2023.
2. This indicates that although company is generating profit, it's at lower level compared to previous period.

Net Worth 
1. Net worth has increased steadily over periods, indicating healthy growth in company's overall value.
2. This suggests that company is managing its resources effectively & generating returns on its investments.

Reserves & Surplus
1. Reserves & surplus have followed similar trend to net worth, increasing consistently.
2. This indicates that company is retaining earnings & strengthening its financial position.

Total Borrowing
1. Total borrowing has fluctuated slightly over periods but remains within manageable range.
2. It's important to monitor borrowing levels to ensure they are sustainable & not causing undue financial strain on company.

Overall, while company has shown growth in certain areas such as assets, net worth, & reserves & surplus, there are concerning signs in terms of revenue & profit decline. Further analysis would be required to identify specific factors driving these changes & to develop strategies to address any underlying issues. Additionally, maintaining balance between borrowing & internal financing is crucial to ensure company's long-term financial health.

Deem Roll Tech Key Performance Indicators

Analysis & Interpretations

Return on Equity (ROE)
1. The ROE has shown increasing trend from 11.5% on 02-03-2022 to 16.8% on 01-03-2023.
2. This indicates that company is generating higher profits relative to its equity base, which is positive sign for shareholders.

Return on Capital Employed (ROCE)
1. Deem Roll’s ROCE has also shown improvement, increasing from 18.3% on 02-03-2022 to 20.3% on 01-03-2023.
2. A higher ROCE suggests that Deem Roll Tech is generating better returns from its capital employed, indicating effective management of investments.

D/E Ratio
1. Deem Roll’s debt/equity ratio indicates proportion of debt financing relative to equity financing in company's capital structure.
2. D/E has increased from 0.43 on 02-03-2022 to 0.47 on 01-03-2023.
3. Higher debt/equity ratio may indicate increased financial leverage, which could potentially amplify returns but also increases financial risk.

Return on Net Worth (RoNW)
1. Deem Roll Tech’s RoNW has shown mixed trend, decreasing from 15.1% on 02-03-2022 to 12.9% on 03-03-2023, then increasing to 20.3% on 01-03-2023.
2. A higher RoNW indicates better utilization of equity in generating profits.

Promoters of Deem Roll Tech IPO

1. Jyoti Prasad Bhattacharya 
2. Dev Jyotiprasad Bhattacharya
The promoter, Jyoti Prasad Bhattacharya, currently holds 53,16,102 equity shares. average cost of acquisition for these shares amounts to ₹6.48.

Conclusion 

Overall, company's profitability metrics, including ROE & ROCE, have generally improved over periods, suggesting efficient utilization of resources & higher returns for shareholders & investors. However, increase in debt/equity ratio warrants careful monitoring to ensure company's financial stability & ability to meet its debt obligations. Additionally, fluctuations in RoNW should be further analyzed to understand factors driving these changes & to ensure sustained profitability in long term.