The valuation scho I

N
-
RED FLAG
ANALYSIS
↓
i Real world

-Study-
case
 The valuation School I
-

Sagamustries
#At
business
-
33 yrs old family run

-leading global supplier of McC

mcc-
microcrystalline cellulose
-

mcc is used to increase the

weight of food products.

-
main use-pharma.
 The valuation School
-
I

#nancialsofgai
Revenne
increased fram
margins a

5
127 to
20%.
- grown
20%CAGR

in last 6yrs.

-
Main boost in Margins ->
Strong R&D
-
Co. Able to produce more with less Raw
material -> Increased operating Efficience.
 The valuation School I
-

#Sigai.
·
- 639E- staggering listing gains
of 250%

-> stock has

corrected
IP0.
approx 657. Since

what went
wrong here?
There are multiple
Red
find out ->
Let's
flags
 The valuation School =>
-

⑱Reeflag
-

The doesn't has

company
of IPs.
ownership
 The valuation School I
-

- Just before the IPO

-

company its
has t rademarks,
IPs, and brand'sigachi' to the
promoters Are.4
of lakhs.

needs to
-

Company pay
now

to promoters from
sales
yr 2025 till 2035.

Have a look at DRHD

-
-

(Draft Red herring Prospectus)

The valuation I

- -

-
 The valuation School =>
-

.
.flag
.
.

incentive
The of promoters

are linked with growth of

Topline (Sales).
 The valuation School I
-

- Shareholders invest in any company

bet upon in line
bottom
growth
i.e. profits

Whereas, here interest of promoters

lies with growth of Topline (sales)

-
In good companies, Interest of
& shareholders should sync
promoters
n ot the
that's case with sigachi.
 The valuation School I
-

Dueto this, are

promoter's desperate
to increase the sales at All cost.
↑

· norcare Business
Dau medicine

②Aggeredit
sales

increased from
Debtor
days
·

days
77 to 88 days
·
credit sales - 25% of Total sally
 The valuation School =>
-

-
⑱Reflag-
I

party.
Too much Related

Transactions
 o
The valuation I

company has taken

alot of premises
from promoters
-

---
 The valuation School I
-

Below are
properties owned by promoters
& Rented to company
 o
The valuation I

That's not all, company's rental

increased by 25%.
Expenses has

in just one year. 251

E
 -

fun
fact
- Despite all these facts
Sigh's IPO was subscribed by
·
OlBs - 86.51 times

·
HNIs-172.43 times
·
Retail -
80.49 times

250%
The listing gains of
stock
was
Highest
-
ever by any
I never invest in IPOs

believe
Because, I

n moreseen
emeg
Did you learn't
something ·
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~ -

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