Subscribe to Elin Electronics: Cholamandalam Securities

Cholamandalam Securities IPO report on Elin Electronics

Incorporated in 1969, Elin Electronics is a leading electronics manufacturing services (EMS) manufacturer providing end-to-end product solutions in multiple business verticals: LED lighting, fans and switches including lighting products, ceiling, fresh air and TPW fans, and modular switches and sockets. Small appliances such as dry and steam irons, toasters, hand blenders, mixer griders, hair dryers and hair straigheners. Fractional horsepower motors, which is used in mixer grinder, hand blender, wet grinder, chimney, air conditioner, heat convector, TPW fans etc. These are manufacturer and sold in their own brand name “Elin”. Other miscellaneous products such as terminal block for air conditioners, stainless steel blade for mixer grinder, die casting, radio sets. Apart from its EMS offerings, it also manufacturers medical diagnostic cartridges for use in diagnostic devices, and plastic moulded and sheet metal parts and components, catering to clients in auto ancillary and consumer durables sector.

Valuation and Outlook

It is reasonably priced at 38 times price-to-earnings (at the higher price band). Given the room for growth in the EMS sector, werecommendinvestors with a long-term investment horizon to “SUBSCRIBE” to this IPO.