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Content
Here in this research report, you will get:
- Simpson IPO Review and Analysis
- Simpson Pre IPO Details
- Simpson Upcoming IPO Details
- Expected Simpson Upcoming IPO Date
- Expected Price Band
- Management Details (Ownership)
- Business Model
- Key Ratios
- Peer Comparisons
- Financial reports (Profit and Loss Statements, Balance Sheets, Results, Growth, Valuations, Funding Rounds)
- Latest News (Articles and Videos)
- Upcoming and Past Events Details
- Rating and recommendations for the Company's shares (Whether to Buy/Sell/Hold)
- Simpson (Latest in Pre IPO Market)
Discover and get a complete analysis on Simpson and Company Limited - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get the latest updates on Simpson Share Price.
ISIN
INE01W301018
Face Value
₹2,500.00
Total Income
₹13,459.66 Cr
Profit After Tax
₹1,691.52 Cr
EPS
₹4,60,105.96
P/E
8.49
P/B
0.85
Market Capitalisation
₹11,511.55 Cr
Enterprise Value
₹14,109.04 Cr
Book Value
₹45,67,624.41
Intrinsic Value
₹47,86,472.00
Dividend Yield
0.48 %
Earnings Yield
11.78 %
Sector
Consumer Discretionary
Sub-sector
Auto Parts
Category
Mid Cap
Cashflow - Operations
₹832.38 Cr
Cashflow - Financing
₹201.27 Cr
Compounded Sales Growth
8.74%
1 Year
4.88%
3 Year
6.37%
5 Year
Compounded Profit Growth
-5.13%
1 Year
13.38%
3 Year
11.76%
5 Year
Return On Equity
12.56%
2022
7.74%
2020
12.51%
2018
Currently, company has no intention to launch IPO.
Acquisition
Information related to Subsidiaries
Name of the subsidiary | Principal Activity | Date of Acquisition |
Addison & Company Limited | Manufacture of Metal Cutting Tools | 30-Apr-57 |
Amalgamations Repco Limited | Manufacture of Auto ancillary parts | 01-Aug-89 |
AMCO Batteries Limited | Manufacturing and Trading of Industrial and Automobile Batteries | 30-Apr-57 |
George Oakes Limited | Trading of Automobile parts and spares | 30-Apr-57 |
India Pistons Limited & Subsidiaries | Manufacture of Auto ancillary parts | 30-Apr-57 |
Shardlow India Limited | Manufacture of Crank Shaft | 19-Dec-61 |
Simpson & General Finance Company Limited | Non Banking Finance Company | 01-Feb-38 |
Sri Rama Vilas Service Limited | Trading of Auto parts and Transportation services | 30-Apr-57 |
Tractors & Farm Equipment Limited & Subsidiaries | Manufacture of Tractor and related parts | 27-Dec-61 |
T. Stanes & Company Limited & Subsidiaries | Manufacturer of Agro products | 01-Oct-64 |
Wheel & Precision Forgings India Limited | Manufacture of Auto ancillary parts | 30-Apr-57 |
Stanes Amalgamated Estates Limited | Tea Estate | 31-Mar-83 |
IP Rings Limited | Manufacture of Auto ancillary parts | 24-Feb-17 |
Subsidiaries:
Associates:
Joint Ventures:
Simpson & Co. has 60 years of experience in engine manufacturing. The company works with manufacturers in diverse areas such as Agricultural, Industrial, Power generation and Marine applications. Simpsons offer a range of five series in Engines - "SC Series", "S Series", "SJ Series", "SJV Series", "S440 Series".
In land where 80% of the economy is agrarian, farm mechanism is the key driver for agricultural growth. Simpsons is a pioneer in introducing diesel engines in 1960 for farm mechanization in India and since then it has played a key role in helping the customers till the soil and haul there produce for 6 decades now. Simpsons produces a wide range of engines from 8-100.5 hp. .
In all day to day activities of lifting, breaking rocks, mixing concrete, earth-moving, safeguarding lives, Simpsons Industrial Engines deliver performance, dependability and operating economy at optimal efficiency.
Hospitals, Theatres, Restaurants, shopping malls, Remote unmanned locations wherever Simpsons generate the power, generate the value for Consumer and their business. More products are under development for offering a comprehensive range of products between 5 -82.5 kVA range.
With rich experience in engines and better understanding on Customer needs, Simpsons is able to offer a comprehensive solution to Fishing Boats, Passenger Ferries, Tourism boats. One of the models S325 has earlier approved for SOLAS, a stringent rule to qualify for “Safety of Life at Sea” by Lloyds Register of Shipping.
These engines can be used in applications like Pumpsets to Hullers, Crushers in dusty environments. Simpsons offer the engines with standard scope of supply for retail sales and are available in Simpsons D2c retail outlets for ready usage.
Spare Parts
Simpsons’ engine parts are comprehensive & diverse – the range includes cylinder heads, crankshafts, cylinder blocks, connecting rod assembly, water pump & lube oil pump assembly, cylinder liners, rocker assembly, pulley, inlet and exhaust valves. The company has 5 branches in South India and 170 dealers across India. It also has a global market presence to ensure easy availability of spares. It extends spare parts warranty period for some of its major components to encourage usage of genuine parts.
Paints
ADDISONS PAINTS & CHEMICALS LIMITED (APC) is a part of Simpson & Co. Ld. and was established in 1948. The company commenced its manufacturing activity to cater to their demands in collaboration with Hardie Trading Limited, Australia, and marketed products under brand names SPARTAN and TROJAN.
Assets as on 31st March 2022
Total Assets | Amounts in Rs(Cr.) |
Long Term Investments | 8,709 |
Property, Plant and Equipment | 1,757 |
Short term Marketable Securities | 2,848 |
Trade Receivables | 1,419 |
Inventory | 1,439 |
Cash & Cash Equivalents | 395 |
Engine Market Overview:
According to the type of fuel used, the engines are classified into three categories:
As Simpson and Company ltd. is primarily into the business of manufacturing diesel engines, so our primary focus will be on Diesel engine market.
Growth Drivers:
The key industries that find engine applications are automotive, power generation, marine, agriculture gensets, construction, off-road equipment and other commercial vehicles. Therefore, it is crucial to comprehend an outline of these industries.
Power Generation:
One of the most important sectors for India's economic development is the power sector. The increasing frequency of natural disasters that result in power outages makes the usage of standby generators necessary. The Indian diesel genset market size estimated at $937.1 million in 2022, and it is expected to advance at a compound annual growth rate (CAGR) of 8.8% during 2022–2030, to reach $1,839.5 million by 2030.. The rise of specialty retail, warehouse facilities, and the manufacturing sector's rising energy needs are projected to increase market opportunities for generators. As of 2021, significant volumes of diesel generators was generated from the range 5kVA-75kVA and Simpson and company offers products between the same range.
Industrial engine business:
A major force behind the industrial engine industry is infrastructure. The infrastructure sector focuses on important infrastructure areas like urban infrastructure, highways and bridges, and power. Therefore, the business of industrial engines will expand as infrastructure does.
Agricultural:
India is among the largest manufacturers of farm equipment like tractors, harvesters and tillers. India accounts for nearly one-third of the overall tractor production globally. To boost farmer incomes and growth of the agricultural economy, the Indian government released funds in June 2021 for farm mechanization such as establishment of custom hiring centers, farm machinery bank and high-tech hubs in different states. Agriculture and allied activities recorded a growth rate of 3.9% in FY 2021-22 and is expected to grow from USD 858 Billion in 2021 to USD 1714 Billion by 2027, exhibiting a CAGR of 12.3% during 2022-2027.
Marine
India's marine engine market, which in volume terms accounted for more than 13,000 units in 2019, is expected to rise over the next five years due to rising ship production and repair activity as well as expanding exports to other nations. The availability of reputable marine engine producers and commercial shipping firms in India is also boosting the need for marine engines in the nation. The market can be divided into diesel, gasoline, and other fuel types. Due to their greater efficiency in terms of fuel economy and lower price than petrol engines, diesel engines held the highest market share in terms of volume in 2019. The market is divided into four categories based on power: 5 to 75 HP, 76 to 350 HP, 351 to 750 HP, and above 751 HP. Due to the building of larger ships and boats, which require high power engines, the 351-750 HP power segment took the lead in the India marine engines market in 2019. Simpson and company offers their diesel engines in the range 10-100.5 hp.
Competitive landscape:
Diesel Engine market is a fragmented market i.e. there is no clear leader within the industry and none of the player have enough market share to influence prices, production, investment and their competition.
Peers:
Outlook:
Some of the recent government initiatives and investments are as follows:
RECOMMENDATION
Buy
Industry Statistics
PUBLIC LIMITED
Registered In
India
last Updated
25/01/2023
Registered Date
02/02/1925
Planify Ticker
SACL
Reg Office: 861/862, ANNA SALAI, CHENNAI – 600 002