IPO Round

Company overview

Paradigm is an Indian e-commerce company that sells fitness apparel and workout equipment across websites, mobile apps and 76 offline stores. It is a unicorn start-up, founded in the year 2010 by Ramesh Singh, a former senior partner at Global Gateway, one of the top management consulting firms in the world.

In 2020, Paradigm became the market leader in the fitness apparel industry overtaking Eveready, one of the oldest and most recognisable Indian companies. Paradigm started retailing over 1,000 brands and 50,000 products across its platforms. In a short span of 7 years, this start-up has become an inspiration for many fitness enthusiasts who wish to start an e-commerce business.

Industry Overview

The global fitness fashion and workout equipment market was valued at $167.7 billion in 2018 and is expected to touch $320 billion by 2025, according to a report by ‘SMITH & CO’, an international rating agency. The agency forecasted a shift in consumer preferences as more and more people integrate fitness as a major part of their lifestyle. During the same time period, the fledgling Indian market is valued at $7 billion in 2020 and is expected to grow to $28 billion during the same period.

SWOT Analysis

STRENGTHS:

Wide Range of Products: Paradigm has very well managed in showcasing a wide range of products in both online and offline stores.

 

Lower Charging Suppliers: Access to suppliers that offer raw materials at a lower cost.

Property Rights: Paradigm owns the intellectual property rights of its products, making it difficult for competitors to draw inspiration from.

WEAKNESSES

Poor Waste Management: The company has been criticized by environmentalists for poor waste management and its inability to integrate sustainability into its business operations.

R&D: Low spending on research and development activities may weaken the company’s performance due to a lack of local/international market knowledge.

Customer Care: Paradigm has not been able to effectively resolve customer complaints. OPPORTUNITIES

Expanding Reach to Population: The exponential growth of the population and especially the existing or potential customer segments is a great growth opportunity for the company.

E-commerce & Networking: The emergence of e-commerce and social media networking as a trend can be a great opportunity for Paradigm. It can ensure a strong online presence on various social networks.

New Technologies: Advanced Technology integration can reduce costs, improve efficiency, and lead to the rapid adoption of innovative products.

THREATS

E-commerce Regulations: The altering legal framework and the introduction of new, stricter regulations pose a major threat to Paradigm. Inability to comply with the changing regulations increases the risk of costly litigation.

The Rise in Competitors: The increasing number of direct competitors such as purplle as well as indirect competitors such as small businesses affects the company’s ability to maintain and expand its customer base.

FINANCIALS

 

COMPETITIVE ANALYSIS

 

COMPANY NAME

P/E (price-to- earnings ratio)ROE (Return of Equity)OPM (operating profit margin)EPS (earnings per share)
Paradigm140115.6%23.2%10.5
Eveready13.5618.9%15%2.51
Quao39.987.8%26%5.56
Hubard4.9711%12.9%3.13

COMPANY PROFILE:

 

This government entity is one of the leading producers of crude oil  and  natural  gas in  India,  accounting for over 35% of domestic output. Crude oil is used by downstream companies like The Indian Gas & Co.,Bhavya Oils Ltd., and SJPL as the natural resource to process petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas LPG. This firm is exceptional because it has in-house operational efficiencies in all sectors of oil and gas exploration and production, as well as allied oil-field services.

 

INDUSTRY OVERVIEW:

The energy needs of India are growing at a faster rate as the income levels and population both are showing rising trends in the country. Increasing automobile sales in India has led to significant investment being made for development of oil exploration and production and to expand the petroleum retail market in India. The ministry of petroleum has estimated that the demand for oil and gas is likely to increase from 186.54 million tonnes of oil equivalent in 2019 to 233.58 million tonnes of oil equivalent in 2022. According to the  Investment  Commission of India, the total opportunity in the oil  and gas sector is expected to reach USD 35  billion  to USD 40 billion  in 2023. The country has seen a growth of 11.85% and 9.94% in the production of crude oil and natural gas respectively in 2021. The total supply of natural gas is expected to grow at a CAGR of 7.2% from 2022 to 2040.

 

SWOT ANALYSIS:

 

STRENGTHS:

  1. Presence of refineries across the country- near consumption centres and the ports to facilitate supplies to both domestic markets as well as exports.
  2. Vast coastline enabling import of crude oil and export of refined petroleum
  3. Government’s commitment to maintain the price line of the essential fuels, particularly the cooking fuels at reasonable
  4. Availability of quality manpower, technical competence and long experience in dealing with petroleum

WEAKNESSES:

  1. Aging oil
  2. Increasing dependence on imported crude
  3. Old and non-complex refineries. Profits of the OMCs not adequate to take care of requisite Capex for fast upgradation of
  4. Reluctance to phase out/ rationalize subsidies on the essential fuels for those consumers who can afford to pay the market
  5. Disproportionate concentration of supply
  6. Low investment in Research &

OPPORTUNITIES:

  1. High economic and industrial growth
  2. High level of growth in the automobile
  3. Rising level of per capita disposable
  4. Expanding infrastructure including road network and fast spreading
  5. New energy sources like Shale Gas, Shale Oil,
  6. Growth in power and fertilizer sectors and conversion of the existing plants to Natural Gas based plants.
  7. Information and Communication Technology (ICT) and their application in technology upgradation and retail outlets

THREATS:

  1. High volatility in international oil
  2. Geo-political unrests and
  3. Growing levels of market borrowings of Oil Marketing Companies deteriorating debt-equity ratio and overall financial position due to continuing under-recoveries.
  4. Adulteration and diversion of products for unintended
  5. Strengthening safety parameters in

FINANCIALS:

 

COMPETITIVE ANALYSIS:

 

 

Company Name

 

P/E Ratio (Price Earnings Ratio)

 

ROE (Return on Equity)

 

OPM (Operating Profit Margin)

 

EPS (Earnings per Share)

Olinio

20.04%

19.6%

34.87%

22.12%

Bhavya Oils Ltd.

22.03%

27.83%

29%

42.78%

The Indian Gas & Co.

18.15%

11.02%

12.79%

30.67%

Veracious Private Limited

14.94%

24.63%

15.61%

67.80%

COMPANY OVERVIEW:

 

Kromozo is one of India’s most popular food service platforms. It connects customers, restaurant partners, and delivery partners through its technological platform, which serves their various demands. The services provided to the customers include booking tables and restaurants, uploading reviews and images, ordering  food,  and paying bills when dining out. Furthermore, it helps the restaurant partners in marketing which is useful in increasing their outreach and developing their business, while simultaneously providing effective last mile delivery service.

INDUSTRY OVERVIEW:

The rapid rise in the number of smartphone users in the country with the availability  of affordable  options is expanding the consumer base of the online food delivery  industry in India.  The ris ing penetration  of the internet due to cheaper data rates is also aiding the market. The Revenue in the Online Food Delivery segment is projected to reach US$13,972m in 2022. It is  expected to show an annual  growth rate (CAGR 2022-2026)  of 11.91%,  resulting in a projected market volume of US$21,850m by 2026. The market’s largest segment is Restaurant-to-Consumer Delivery with a projected market volume of US$9,402m in  2022.  The  average  revenue  per  user (ARPU)  is projected to amount to US$44.51 in 2022 and the number of users is expected to reach 530.2m users by 2026.

Moreover, user penetration in the Online Food Delivery segment will be at 24.0% in 2022.

SWOT ANALYSIS:

 

STRENGTHS:

Early mover advantage: It is among the first firms to start such services in India, because of which it has acquired a huge customer base now.

Perennial nature of the Restaurant Industry: There might be some kind of slump which might affect the industry but it will always going to recover.

User-friendly Interface: It is convenient for the customers to search for restaurants in their vicinity or at planned locations.

Excellent Marketing Strategy: The ads and social media posts are so creative and realistic that it makes an instant connection with the customers.

Strong funding: The firm has a lot of funds available for further improvement of the app. WEAKNESSES:

Security Issues: The app has been hacked a few times, putting the data of millions of users at risk.

Increased Competition: Competition from search engines and other similar food discovery and delivering apps creates impediment for growth.

OPPORTUNITIES:

Scope of Expansion: The firm needs to establish and expand itself faster than others in order to stay ahead of the curve.

More Acquisitions: It can initiate a partnership with several of its competitors and at the same time keep  an eye on the latest technologies and trends.

Online Users: The number of smartphones and internet users has been increasing tremendously which makes it easy to approach new users and convert them into their customers.

THREATS:

Fragile Business Model: Lately, the company business model has somewhat turned fragile. Any new tech company with enough knowledge and expertise in this field can now exploit the model.

Government Policies: Governments are implementing new regulations to prevent the issues of identity theft, cybersecurity, data privacy issues, etc which hinder the steady flow of the business model.

FINANCIALS:

 

 

 

COMPETITIVE ANALYSIS:

 

 

Company Name

 

P/E Ratio (Price Earnings Ratio)

 

ROE (Return on Equity)

 

OPM (Operating Profit Margin)

 

EPS (Earnings per Share)

 

Crabby

 

-43.72%

 

-56.44%

 

-30.01%

 

-2.62

 

Labina

 

18.06%

 

18%

 

24%

 

17.71

 

ProFood

 

-63.27%

 

-92.52%

 

-37.05%

 

-7.00

 

Kromozo

 

-67.52%

 

-10.63%

 

-24.08%

 

-1.65

COMPANY OVERVIEW

Vijay Group is an Indian multinational conglomerate, with business interests in engineering, construction, manufacturing, technology, and financial services. Headquartered in Mumbai, the company operates in mainly three segments i.e. Engineering & Construction Segment, Electrical & Electronics segment, Machinery & Industrial Products and others. It is considered among the world’s top five construction companies.

INDUSTRY OVERVIEW

The Indian Construction Market is expected to register a CAGR greater than 10% during the forecast period (2022 – 2027). In 2021, investments in the industrial and logistics sector exceeded USD 1.5 billion, making it the second-highest recipient of such funds after the office sector. The construction industry in India is predicted to remain buoyant due to increased demand from real estate and infrastructure projects. The Indian Real Estate sector is expected to reach a market size of USD 1 Trillion by 2030. Its contribution to the country’s GDP is expected to be approximately 13% by 2025.

SWOT ANALYSIS

STRENGTHS:

Strong Brand Name: The company has handled various large-scale projects in India and has successfully created a trustworthy brand name.

Technical expertise: Vijay group is known for engineering and its custom-made technology intensive equipment and systems.

Genuine Material Suppliers: It has a powerful base of reliable suppliers of raw materials, thus facilitating the company to survive any supply chain bottlenecks.

WEAKNESSES:

Dependence on the Indian market: Indian market contributes over 65% of its total revenues and thus makes the company largely dependent on the Indian market. Overdependence on a particular market makes the company vulnerable to any fluctuations in the Indian market.

Increasing debt: Vijay Group’s debts have been increasing steadily for the past few years. Vijay Group’s debt has increased from INR 98960 million in FY2011 to INR 136090 in FY2016. Increasing debts impact a company’s financial flexibility.

Labour Safety: The company’s labour works in an unsafe environment i.e. construction sites, real estate projects, road construction where the risk to their life is more. This is the place where the responsibility of the company increases in terms of ensuring its labour safety and sometimes it fails when some unseen events happen with its labour.

OPPORTUNITIES:

Growth in the industry: The Indian construction and engineering industry grew by 8% year on year. With expected high government and private spending on infrastructure in the next 10 years on smart cities, metro projects etc. Vijay Group is well placed to leverage the opportunity created in the industry.

New Markets: The adoption of new technology criteria and government free trade agreements has provided Vijay Group with an opportunity to enter a newly developing market.

THREATS:

Extensive environmental regulations: Vijay Group is subject to follow extensive environmental regulations relating to health, pollution, waste disposal etc. These regulations increase compliance costs for the company.

GST impact can be negative: The cost of under-construction buildings are expected to increase with GST and it will have an overall negative impact on the construction industry.

FINANCIALS:

 

COMPETITIVE ANALYSIS:

 

 

COMPANIES

P/E (price-to- earnings ratio)

ROE (Return on Equity)

OPM (operating profit margin)

EPS (earnings per share)

 

Vijay Group

 

48.4

 

27.5%

 

22%

 

102.2

 

Siemens

 

13.61

 

11.13%

 

11%

 

30.62

 

Havels India

 

76.41

 

21.96%

 

15%

 

16.68

 

Bharat Electronics

 

23.68

 

19.98%

 

23%

 

8.61

COMPANY OVERVIEW:

 

HariShakti Ltd was founded with the goal of improving the environment by generating environmentally friendly initiatives and understanding the demands of the BioTech industry.

HariShakti is one of the few companies in India with multidimensional strengths and capabilities to provide organized and comprehensive Manufacturing/Marketing services in the field of GreenHouse technology, Realizing GreenHouse technology as one of humanity’s greatest intellectual enterprises, to provide the impetus that fulfills this potential of understanding life processes and using them to the benefit of humanity.

INDUSTRY OVERVIEW:

The Indian biotechnology sector was valued at US$ 63 billion in 2019 and is expected to grow at a CAGR of 16.4% to US$ 150 billion by 2025. The Indian biotechnology industry is predicted to increase its share of the global biotechnology market to 19% by 2025, up from 3% in 2017. Biopharmaceutical, the largest segment in the Indian biotechnology market, accounted for 62 percent in 2020 and 58 percent in 2019.

SWOT ANALYSIS:

  • STRENGTH
    • Superior Quality: current customers are extremely loyal; it can help it increase its market share even
    • Diverse Product Portfolio: enables it to target multiple segments of the market at the same time
    • Strong Finance: enables it to invest in new and diverse projects, diversifying the revenue stream
  • WEAKNESS

 

  • Organization Culture: it’s still dominated by turf wars within various divisions, resulting in managers keeping information close to their
  • Technology Implementation in Processes: it has yet to harness the power of technology in the front-end
  • OPPORTUNITY
    • Opportunities in Adjacent Markets: it can explore adjacent industries to further market growth, particularly by expanding the features of existing products and
    • Changing Technology Environment: The rise of machine learning and artificial intelligence is reshaping the technology
  • THREAT
    • Regulations and Bureaucracy: it should keep a close eye on the rapidly changing government regulations, which are under increasing pressure from protest groups and NGO’s
    • Buyers’ bargaining power is increasing:, putting downward pressure on

FINANCIALS:

COMPETITIVE ANALYSIS:

 

 

 

 

COMPANIES

 

 

ROE (return on equity)

 

 

P/E (price earnings ratio)

 

 

OPM( operating profit margin)

 

 

EPS(earnings per share)

HARISHAKTI

10.90%

6.75

33%

4.07

SWAGATI

9.69%

5.47

22.74%

2.51

BHADRA

11.54%

7.09

31.86%

5.56

PANJAL

8.73%

4.97

37.21%

3.13

COMPANY OVERVIEW:

 

Paine Ltd is India’s largest payment service provider, including multi-source and multi-destination payment options. It provides comprehensive payment solutions to over 8 million merchants and allows customers to send money from any bank account to any other bank account for free. Paine provides customers, offline merchants, and internet platforms with full-stack payments and banking solutions. Payments, commerce, banking, investments, and financial services are all part of the company’s objective to integrate half a billion Indians into the mainstream economy.

INDUSTRY OVERVIEW:

The whole fintech business opportunity in India is anticipated to be $1.3 trillion by 2025, with a CAGR of 31% from 2021 to 2025. Insurance tech, which is increasing at a CAGR of 57 percent, is the fastest- growing fintech sub-segment in terms of market opportunity, followed by investment tech (44 percent) and fintech SaaS. (40 percent ).

In 2021, the country’s fintech firms raised $8 billion ($7.97 billion, to be exact) in 280 fundraising deals, a record high in both cases, with an average investment ticket size of $33 million. Lending technology and digital payment businesses reaped the most rewards among fintech subsectors.

SWOT ANALYSIS:

  • STRENGTH:
    • business tie ups: It can be used to transact with more than 30 lac merchants PAN India
    • user convenience: as it is operational 24*7 & facilitates easy payment or transfer of funds anytime,
    • multiple services
    • schemes and offers

  • WEAKNESS:
    • poor customer care: due to huge customer base, it is difficult to satisfy them all
    • need for IT infra: adequate bandwidth & speed require to operate not available in all areas
    • lack of awareness amongst users
  • OPPORTUNITY:
    • growing demand for aggregators: people prefer to make payments conveniently from
    • digitalisation: it benefitted heavily from
  • THREATS :
  • competition: with low barriers to entry , competition is increasing
  • safety concerns: there is negative imagery of information security and tracking of shopping

FINANCIALS :

 

COMPETITIVE ANALYSIS:

 

 

 

COMPANIES

 

ROE (return on equity)

 

P/E (price earnings ratio)

 

OPM( operating profit margin)

 

EPS(earnings per share)

PAINE

-19.40%

-2.314

-63%

-25.78

WATSON

-90.06%

-7.82

18.41%

-66.15

SYMONDS

-110.61%

-10.51

6.42%

-78.19

SMITHY

14.14%

3.73

13.51%

32.54