untries such as Germany, Italy, and France. One of the key strengths for AVCL is a stable customer base over the years and it enjoys a strong and stable business relationship with its customers. The company has also been able to add new customers to its portfolio in the last fiscal from geographies namely the US, Canada, and Russia with improving demand.

(iv) Anugraha exports over 36 million US$ of steel castings per annum. As Anugraha follows consistent quality as per international standards, decorated with quality certifications like ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007, etc. Anugraha exports over 6,000 Metric tons of Steel, Stainless Steel, Alloy Steel, Nickel-based alloy, Duplex, and Super Duplex steel castings per annum in raw and fully machined conditions.

(v) Anugraha has four manufacturing units and modern Two Machine Shops which are situated in and near Coimbatore. Machine shops are equipped with conventional and numerous CNC machines.

Challenges in the business of Anugraha Valve

(i) Moderate scale of operations with moderately high customer concentration - Anugraha Valve scale of operations is moderate, evident from an operating income of Rs. 215.3 crore in FY2021. Though the company has an established relationship with its customers, the revenue contribution from the top five customers remained moderately high at 45.1% in FY2021.

(ii) High working capital intensity - AVCL’s working capital requirements are generally higher due to longer transit cycles. The collection cycle is around three months from both export and domestic customers, while the creditors are paid within 15- 20 days so that they can avail discounts. The average manufacturing cycle varies from three to four months and depends on the complexity of design and degree of customisation. The NWC/OI was high at 43% in FY2021, which is in line with the FY2020 level of 41%.

Review of Anugrah Valve Unlisted Share in FY21

1. The company has gone down by 14.28% in revenue in FY21 as compared to last year.

2. The company's PAT has increased by 22% in FY21 as compared to last year.

3. The Debt as on 31.03.2021 is 25 cr and Net-Worth of ~205 cr. So D/ E is 0.12 which is very comfortable.

4. The company has recommend no dividend for the Financial Year ended 31st March 2021.

5. The RONW is for FY20-21 is only 6.8%.

Review of Anugrah Valve Unlisted Share in FY22

1. The revenue has increased by 14% in Fy22. The revenue has gone up from 216 Crores in FY21 to 248 Crores in FY22.

2. The Gross Margins have reduced from 76% in FY21 to 65% in FY22 due to high cost of material consumed.

3. Due to reduction in gross margins there is a direct impact in EBITDA, and PAT margins.

4. EPS for FY22 has reduced from Rs.40 per share to Rs.11 per share.

(iii) Earnings vulnerable to fluctuations in raw material prices and regulatory changes on export incentives -

Ferrous scrap is the major raw material of the company. Any fluctuation in the price of scrap is likely to impact the company’s earnings. Also, as the company makes ~90% sales to the export market, any adverse regulatory changes in the export incentives are likely to impact the earnings.