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RATING

RECOMMENDATION

Buy

Business Type

Traditional Business

Discover and get a complete analysis on Lava unlisted shares - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get latest updates on Lava Share Price.

ISIN

INE745X01022

Face Value

₹5.00

Total Share

55,77,69,856

Total Income

₹5,523.68 Cr

Profit After Tax

₹172.62 Cr

EPS

₹3.46

P/E

59.83

P/B

1.73

Market Capitalisation

₹11,545.84 Cr

Enterprise Value

₹11,649.88 Cr

Book Value

₹119.57

Earnings Yield

1.67 %

Sector

Information Technology

Sub-sector

Technology Hardware

Category

Pre IPO

Cashflow - Operations

₹151.78 Cr

Cashflow - Financing

-₹49.10 Cr

Lava Growth

Compounded Sales Growth

  • 4.57%

    1 Year

  • 4.56%

    3 Year

  • -5.41%

    5 Year

Pro Only

Compounded Profit Growth

  • 60.18%

    1 Year

  • 44.83%

    3 Year

  • -8.38%

    5 Year

Pro Only

Return On Equity

  • 11.52%

    1 Year

  • 5.54%

    3 Year

  • 20.17%

    4 Year

Pro Only

About Lava

  • Lava International Limited ("Lava") manufactures and trades in mobile phones, storage devices and other telecommunication devices. It offers smart phones, feature phones, laptops, tablets and accessories.  
  • The company has been building mobile handset design capability including industrial design, mechanical design, hardware design & software design. Lava and Xolo are two brands that operate under the parent company.
  • It is headquartered in Noida, India, and has overseas operations in Thailand, Nepal, Bangladesh, Sri-Lanka,  Indonesia, Mexico, and the Middle East. The company also has an in-house research and development center and manufacturing facilities in Noida.
  • With this 'Design in India' initiative, Lava is now the only Mobile handset company that makes truly “Make In India” phones with complete control on design and manufacturing within India. Lava has two manufacturing plants in India and the company claims to be the only Indian brand to design devices in India and do PCB SMT in its own factory. 
  • The handset-maker a couple of years ago had 50 products  (about 20 smartphones and some 35 feature phones) in its portfolio which has now brought down to less than 15 phones  (five smartphones and nine feature phones).  
  • The company was founded in 2009 as an offshoot of a telecommunication venture by Hari Om Rai, Sunil Bhalla, Shailendra Nath Rai, and Vishal Sehgal.

  • Lava IPO Details

Lava international filed a DRHP to raise Rs 1400-1500 crore approximately from the market. Also, the shareholders are going to sell a total of 43,727,603 shares during the IPO. The company said it might also hold a private placement round to raise Rs 100 crore ahead of the IPO

Lava
Offer for Sale

₹ 896.00 Cr

Lava
Fresh Issue

₹ 500.00 Cr

Lava
Total IPO Size

₹ 1396.00 Cr

  • Lava Funding

Funded By Funding Amount Date of Investment Funding Round
The Global Emerging Markets Group ₹ 677 Cr 25 Feb 2020 1
  • Lava Subsidiaries

  • Lava Enterprises Limited
  • Sojo Distribution Private Limited
  • Sojo Manufacturing Services (AP) Private Limited
  • Sojo Manufacturing Services Private Limited
  • XOLO International (HK) Limited
  • Lava International (H.K.) Limited, Hong Kong (“Lava International (H.K)”
  • Lava Technologies DMCC
  • Lava Technologies LLC
  • China Bird Centro America, S.A
  • Lava Mobility (Private) Limited, Sri Lanka
  • Lava International (Nepal) Private Limited
  • Lava International DMCC
  • Lava Mobile Mexico
  • Lava International (Myanmar) Company Limited
  • PT. Lava Mobile Indonesia, Indonesia
  • Lava International (Bangladesh) Limited, Bangladesh

Lava Business Model

  • Lava Enterprises is engaged in the business of, inter alia, manufacturing, buying, selling, erecting, commissioning, exporting, importing, hiring and servicing of electronic, telecommunication and electrical equipment. 
  • Sojo Distribution is engaged in the business of, inter-alia, manufacturing, distribution, online B2B & B2C portals, agents, service commission agents, wholesaler, retailers, sales and repairing network dealers of all types of mobiles, laptops, softwares, electronic gadgets, electronic and electrical appliances, communication equipment, spares, accessories, components and other related products, components.
  • Sojo Manufacturing Services (AP) is engaged in the business of, inter-alia, manufacturing, trading, import-export, consulting services, erect, commissioning, hire, licensing services, information service provider of all type of electronics, telecommunication, digitalised, gadgets, gaming machine, virtual reality gadgets, gaming software, software applications, electrical, or any type of integrated equipment including their printed circuit boards, wiring, pads, modules, sub-assemblies, spares and components. 
  • XOLO International (HK) was incorporated as a private company limited by shares, on February 10, 2015 under the laws of Hong Kong(Companies Ordinance). XOLO International (HK) is currently engaged in the business of smartphones and accessories trading.
  • Lava International (H.K.) is currently engaged in the business of trading in mobile phones and investment holding.
  • Lava Technologies DMCC (Dubai) is currently engaged in the business of mobile phones and accessory trading.
  • Lava Technologies LLC, USA is engaged in the business of manufacturing, trading and distribution of consumer electronic products such as mobile phones, tablets and accessories.
  • China Bird is currently engaged in the business of trading and distribution of telecommunications equipment in Latin America.
  • Lava Mobility (Private) is currently engaged in the business of providing marketing services to the Company.
  • Lava Revenue Segmentation

  • Sale of mobile handset
  • Sale of services
  • Scrap sale
  • Export Incentives
  • Others
  • Lava Product & Services

  • Mobile Phones
  • Tablets
  • Data cards
  • Chargers
  • Smart bands and smart watches
  • Lava Pay
  • Lava Pulse
  • Audio products(headphones and speakers)
  • Lava Assets

The company's assets as at 31 March 2021:
  • Land- INR 3 Cr
  • Plant and Machinery- INR 45 Cr
  • Demonstration Fixtures- INR 58 Cr
  • Lava Industry Overview

Industry Statistics

  • The information technology (IT) sector is comprised of companies that produce software, hardware or semiconductor equipment, or companies that provide internet or related services. In India, IT and ITES industry is divided into four major segments – IT services, business process management (BPM), software products and engineering services, and hardware.
  • In 2021, there has been a significant jump in ASP(average selling price) and higher volumes, the Indian smartphone market is estimated to touch Rs 2 trillion. From its previous high of Rs 11,600 in 2019, the ASP for smartphones is now estimated to breach Rs 12,300 in 2021.
  • Rising disposable income, cheaper internet, and the need to always stay connected are some of the factors that have led the Indian smartphone market to grow into one of the largest smartphone markets in the world. The pandemic has also created the new normal work environment which requires people to always stay connected working from home thus increasing the need for smartphones. Entertainment and remote learning have further increased the need for smartphones post the pandemic.  
  • As per an analysis by Frost and Sullivan(F&S), India's market for smartphones comprised of 143.3 million units compared to 110.8 million units for feature phones in 2020. The analysis also ascertains that Middle East, Africa and India account for over 68% of the global feature phone demand. According to F&S, Lava International is the third largest feature phone company in India with a market share of 13.4%, in terms of sales volume in the financial year 2021.
  • For the IT hardware industry, Ministry of Electronics & Information Technology (MeitY) has notified "Electronics and Information Technology Goods (Requirement for Compulsory Registration) Order, 2012" as per which no person shall manufacture or store for sale, import, sell or distribute goods which do not conform to the Indian Standard.
  • The key competitors of the company include Micromax Mobiles, Samsung, Oppo, Vivo, Xiaomi etc

Future Prospects

  • According to an analysis by Frost and Sullivan, India's mobile phone market is expected to grow at a CAGR of 13.6% from 2020 to 2025 increasing from US$ 18.5 Bn in 2020 to US$ 34.9 Bn in 2025.
  • As per GSMA, India is on its way to becoming the second-largest smartphone market globally by 2025 with around 1 billion installed devices and is expected to have 92 Cr. unique mobile subscribers by 2025 which will include 9 Cr. 5G connections.

Government Initiatives

  • The mobile manufacturing sector is open for 100% foreign direct investment. The industry attracted FDI worth INR 1,715 Cr. in 2018 from various parts of the world. However, Chinese firms have been dominating the list of investors. Brands such as Oppo, Vivo, and Xiaomi were the prominent Chinese investors, while Samsung, Apple and Taiwanese contract manufacturer Foxconn were among others.
  • The Union budget, 2018-19 raised the customs duty on mobile phones again from 15% to 20% to encourage domestic manufacturing of mobile phones.
  • The PLI(Production-linked Incentive) scheme offers incentives of 4-6% on incremental sales of mobile phones manufactured in India to eligible companies for a period of five years from the base year (2019-20). High-end manufacturers or companies producing handsets worth over Rs. 15,000 (~US$ 200) must sell goods worth Rs. 4,000 crore (~US$ 550 million) or more to avail the subsidy in 2020-21.
  •  The NPE 2019, approved by the union cabinet, has set an ambitious target of manufacturing goods and offering services worth Rs 26 trillion by 2025 and half of it is expected to come from a robust mobile handsets sector. The policy relies heavily on the success of the mobile manufacturing ecosystem in the country. The policy is aimed at manufacturing 1 billion handsets locally, valued at Rs 13 trillion, by 2025 that would include the export of 600 million devices worth Rs 7 trillion.

Lava Awards & Achievements

  • Most Trusted Brand – CMR Retail Sentiment index 2018
  • Golden Peacock Awards – Innovative product and services 2018
  • Best customer experience team of the team by Kamikaze B2B Media

Lava Strengths

  • LAVA has decreased it's total debt by INR 75 Cr in 2021 over 2020. As a result the company has lowest debt to equity ratio among all of its peers, depicting a strong solvency position which is helpful for long term growth of the company.
  • Despite the pandemic being prevalent in the country, the company was able to register a 5% growth in total revenue in FY'21 over FY'20. This exemplifies the high efficiency of the company.
  • LAVA is among the 16 companies approved under the Production Linked Incentive Scheme by the Government of India, which may help the company to boost its production and help in achieving higher growth of the company.
  • The company stays updated with the market trends in terms of the products it manufactures, which helps them capture a larger market. Recently, they have launched the first India made 5G smartphone for domestic users.

Lava Shortcomings

  • The consumers have registered a few complaints regarding the hardware of the smartphones, hence it is an area where the company needs to focus more in order to be able to produce higher quality products to satisfy the needs of the consumers. 

Lava Opportunities

  • The bigger players in the mobile phone market are moving towards foldable and stretchable screens with higher resolutions, which also seems to be the trend of the future years. Also, companies are creating operating systems which can integrate the functions of the smart wearables and smartphones. These are a few areas where the company needs to focus on in order to achieve higher growth in the future.

Lava Threats

  • The company has a customer base which is highly price sensitive. Hence the company has to price their products competitively in order to capture a wider market, but offering products at lower prices is not always a viable solution as it affects the profitability of the company.
  • The company is likely to face a stiff competition, at every segment of the current market, from brands like Xiaomi, OPPO, Realme, Micromax, Honor, Oneplus, Samsung etc.

Lava Rating

  • RECOMMENDATION

    Buy

  • Lava Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

16/12/2021

Registered Date

27/03/2009

Planify Ticker

LAVA

Reg Office: B-14, HOUSE 2 , BASEMENT, SHIVLOK COMMERCIAL COMPLEX, Karampura Delhi, West Delhi, DELHI, INDIA – 110015

Website: http://www.lavamobiles.com