Arihant Capital IPO report on Rolex Rings
Rolex Rings Ltd was incorporated in 2003, one of the top five forging companies in India. The company manufactures bearing rings, automotive components that are used in commercial vehicles, electrical vehicles, passenger vehicles, 2-wheelers, wind turbines, industrial machinery and railways etc. it has installed 4.7 Mn MTPA forging capacity of India's forging industry and one of the key supplier of bearing rings in India. Rolex rings is one of the Tier-I supplier, supplies to global auto companies and some auto OEMs across automobile & automotive industry. it has in-house engineering, design tooling and die-making and raw materials are sourced from customer approved vendors. In most of the customer contracts, raw material cost pass through to the customers. The company supplies domestic as well as international automotive companies and having 60 customers across 17 countries including Germany, France, Italy, Thailand, Czech Republic, USA and others.
Valuation and Outlook
At a upper price band of INR 900 stock is trading at a P/E multiple of 24.8(x). We believe Rolex Rings Ltd is a good long term proven business model with Comprehensive product portfolio, Integrated manufacturing facilities, strong and long term relationship with key customers, experienced management team and recovery in auto & automotive industry will lead the growth for the company. We are recommending “Subscribe for long term” for this issue.
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