RATING

RECOMMENDATION

Buy

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Buy

Business Type

Traditional Business

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 update. You can start investing through Planify and get report on LAVA Revenue Growth.

ISIN

INE745X01022

Face Value

₹5.00

Total Share

12,53,66,902

Total Income

₹5,523.68 Cr

Profit After Tax

₹172.62 Cr

EPS

₹3.46

P/E

44.80

P/B

1.30

Market Capitalisation

₹1,943.19 Cr

Enterprise Value

₹1,879.94 Cr

Book Value

₹119.57

Intrinsic Value

-₹9.10

Earnings Yield

2.23 %

Sector

Information Technology

Sub-sector

Technology Hardware

Category

Pre IPO

Cashflow - Operations

₹149.48 Cr

Cashflow - Financing

-₹49.10 Cr

Lava Growth

Compounded Sales Growth

  • 4.72%

    1 Year

  • 4.65%

    3 Year

  • -5.39%

    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%

    2021

  • 6.04%

    2019

  • 20.17%

    2017

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

Visit Website

Frequently Ask Questions

The company has filed DRHP to raise 1400-1500 Crores from the market

The face value of the LAVA Unlisted Shares is 5

Yes, we can expect good profit from the company in future

Hari Om Rai, Sunil Bhalla, Clipper Global S.A, Sojo Infotel Pvt Ltd are the major shareholders of the company

Hari Om Rai is the Chairman and Managing Director 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.

We recommend buy rating on LAVA unlisted Shares

The total profit for the LAVA is 172.62 crores

Please find below the procedure for buying stock_name_auto Unlisted Shares at Planify.
• 1. You confirm booking of stock_name_auto Unlisted Shares with us at a trading price.
• 2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.
• 3. We will provide the bank details.
• 4. You need to transfer funds in that account.
• 5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.
• 6. Payment has to be done from the same account in which shares are to be credited.
• 7. We will transfer the shares in 24 hours if funds are credited before 2 pm.
Important Note: Please note that the lock-in period for selling stock_name_auto Unlisted Shares is 6 months after listing. Hence you can’t sell stock_name_auto Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date.

Please find below the procedure for selling stock_name_auto Unlisted Shares at Planify.
• 1. We will confirm our buying price of stock_name_auto Unlisted Shares.
• 2. We will give you our client master report and you will transfer the stock_name_auto Unlisted Shares to our demat account.
• 3. We will ask for bank details of yours once the stock_name_auto Unlisted Shares are received in our demat account..
• 4. We will transfer the funds in your bank account within 24 hrs of receiving the stock_name_auto Unlisted Shares.
• 5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.
• 6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.
Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.

Lock-in period of stock_name_auto Unlisted Shares depends upon category of investors.
• 1. Venture Capital Funds or Alternate Investment Fund of Category -I or II, or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of stock_name_auto Unlisted Shares.
• 2. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of stock_name_auto Unlisted Shares.
This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the stock_name_auto Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.
1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.
• a. ISIN number of stock_name_auto Unlisted Shares.
• b. Name of stock_name_auto Unlisted Shares
• c. Quantity of stock_name_auto Unlisted Shares
• d. Cosideration Amount
• e. Target DP ID and Client ID
• f. Annexure
2. Online DIS - Some of the broker these days gives facility of transferring the stock_name_auto Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the stock_name_auto Unlisted Shares by filling the details similar to Ofline-DIS.

In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. So, via our Planify platform, if somebody wants to buy stock_name_auto Unlisted Shares then minimum investment would be 35-50k.

Yes, buying and selling of unlisted shares in India is 100% legal.

If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.

If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.

Taxes will remain the same irrespective of listing of shares, if bought in unlisted market. Actually, to be eligible for taxes as per listed market, one has to pay STT on buying and selling of shares. But, if you buy in unlisted and sell in listed market, one pay STT only on selling so, taxes of listed market will not be applicable.

If you buy stock_name_auto Unlisted Shares from Planify then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.
Check credit of stock_name_auto Unlisted Shares Instantly?
• 1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.
• By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
• Demat Account = DP ID + Client ID. (16 Characters )
• "DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
• Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.
• In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.
• Example:
• CDSL = 12345678(DP ID) and 91234567(Client ID).
• NSDL = IN123456 (DP ID) and 78912345(Client ID).
• Check in brokers application?
• Credit of stock_name_auto Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The stock_name_auto Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of stock_name_auto Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on Planify.live platform to see the historical graphs and prices of all the shares at one place.

If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.

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We at Planify do the valuation based on 2 methods.
• 1. We check the last funding that is being done in the stock_name_auto Unlisted Shares to ascertain the benchmark valuation.
• 2. If there is no funding happened in the company, then we try to find a business similar to stock_name_auto Unlisted Shares in the listed space and do comparison method to ascertain the valuation.
As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

We source shares either from the employees or initial investors looking to liquidate their stock_name_auto Unlisted Shares.

Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their stock_name_auto Unlisted Shares in the unlisted market itself.

Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.

For tracking news and other information about stock_name_auto Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.

Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of stock_name_auto Ltd unlisted share.

We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of stock_name_auto Ltd unlisted shares with us.

The financials of stock_name_auto Ltd which includes the P/L of stock_name_auto Ltd and the Balance Sheet of stock_name_auto Ltd is in the financials section.

The annual report of stock_name_auto Ltd is available in the annual report section.