Mukka Protein IPO: Business Model, Key Details, Financial Statements, and SWOT Analysis

Embark on an exciting journey into the aqua-culture sector with the initial public offering (IPO) of Mukka Protein Limited, a leading player in the sustainable seafood industry. 

In today’s blog, we’ll cover the company’s business model, key details, financial statements, and SWOT analysis. 

Company Overview

Established in 2003 as a partnership firm by K. Abdul Razak, the company was renamed Mukka Protein Limited and became a private limited company in 2010. 

The company’s corporate headquarters is located in Mangalore, Karnataka, India.

The company mainly focuses on producing fish meal, fish oil, and fish soluble paste, which are used to make aqua food for fish and shrimp, pet foods for dogs and cats, and poultry feed for broilers and layers.

The company has established production facilities around India’s prominent coastlines, with ten global fishmeal factories — four in Karnataka, four in Gujarat, and two in Oman. Each of their units has a technician for quality control management and dedicated in-house laboratories.

Awards and Accreditations

1.  India’s growth champion award by Economic Times.

2.  Star exporter awards, by Federation of Karnataka Chamber of Commerce and Industry.

3.  State export excellence award by the commissioner for industrial development and director of industries and commerce.

4.  Certificate of FT High–Growth Companies Asia Pacific 2023 by financial times and statista.

Promoters

The company’s promoters are Kalandan Mohammed Arif, Kalandan Mohammed Haris, and Kalandan Mohammed Althaf; they own 100% of the shares.

Details of the Issue

The company wants to issue 8 crore new shares to raise a total of 224 crore. With a market lot of 535 shares, the IPO’s lower price band is set at 26 INR, while the higher price band is set at 28 INR per share. 

Major details

Timeline of IPO

IPO Allotment Size

Objective of the Issue

The IPO proceeds will cover the working capital requirements of the company’s associate, Ento Protein Private Limited.

Key Financials of the Company

Balance Sheet

Income Statement

Cash Flow Statement

KPIs

Based on the company’s EPS, the PE ratio on the lower price band will be approximately 13x, and on the upper price band, it will be 14x.

Strengths

1.  The industry in which the company works has a high barrier to entry; no new businesses can easily establish themselves in this market.

2.  The company has a long history with many of its customers.

3.   The business is one of India’s top producers of fish protein products.

4.   The company’s management team has extensive business operations expertise.

Risks

1.  In FY23, the company’s cash flow from operations was negative. This might come across as a red flag to many investors.

2.  The company offers a non-diversified range of products. This exposes the company to the possibility of decreased profitability during unforeseen events. 

3.  Since the corporation sells goods to multiple nations, it may be exposed to the risk of volatility in exchange rates.

4.  Top 10 customers provide the company with 72% of the revenue. Thus, any changes in their contracts could significantly affect their profitability.

Conclusion

We have covered nearly every pertinent aspect regarding Mukka Protein in this IPO blog, including its background and corporate finances. The corporation may see an increase in its market share in the upcoming years due to its expansion ambitions.

If you intend to invest in this firm, please ensure that you have carefully reviewed all of the company’s parameters and considered your risk profile.

Frequently Asked Questions (FAQs)

Q1. When will the Mukka Proteins IPO be listed?
Ans. The listing date of the IPO is March 7, 2024.

Q2. Is Mukka Proteins a profitable company?
Ans. Mukka Protein Ltd. is a profitable business that has consistently reported profits.

Q3. What does Mukka Protein do?
Ans. In addition to fish meal and oils, the company also manufactures and sells animal protein-related items on the domestic and international markets.

Q4. Is revenue concentration a major risk for Mukka Protein?
Ans. Yes, 72% of the revenue is derived from the top 10 customers. This exposes the company to the possibility of incurring losses if these customers alter their contracts. 

Q5. How much did the revenue from operations grow for Mukka Proteins?

Ans. Mukka Protein’s revenue from operations grew 95% in 2 years. This massive jump in top line figures indicates the company’s strive for growth. 

Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.