Company Presentation
Urban Tots, the toy division of Deepak Houseware and Toys Pvt. Ltd., is a leading Indian toy manufacturer established in August 2021 and headquartered in Rajasthan. It specializes in diverse toys including plastic, electronic, wooden, and metallic products. The company operates from a state-of-the-art facility, emphasizing innovation and quality.
Investment Rationale: Urban Tots exhibits a robust growth trajectory with revenue surging from ₹16.23 Cr in FY22 to ₹78.82 Cr in FY24. The company has strategic partnerships with major retailers like FirstCry, DMart, VMart, Hamleys, and Reliance to enhance market reach. Innovation and self-reliance are key, being among the first in India to produce its own molds. It is a beneficiary of the Government of India's Production Linked Incentive (PLI) scheme and Rajasthan's DIC scheme, receiving a 5% interest subsidy. Transitioned to publicly owned entity in May 2024, aiming for an IPO by 2026.
Key Risks: The company faces market competition from established domestic and international toy manufacturers. It has supply chain dependencies, relying on raw material suppliers and logistics which could impact production and delivery timelines. Regulatory changes in government policies or import-export regulations could affect operations.
IPO Timeline & Exit Options: The company is planning to raise ₹60 Cr in 2024 at a valuation of ₹553 Cr to bolster production capacity through Pre-IPO funding. The targeted IPO launch is by 2026 to raise ₹200 Cr, facilitating expansion plans.
UnlistedZone View: Urban Tots has demonstrated impressive growth and strategic planning in a short span. With strong government support, innovative practices, and a clear roadmap for expansion, the company presents a promising investment opportunity in the burgeoning Indian toy industry. UnlistedZone recommends an "Accumulate" rating with a 2-3 year investment horizon, subject to market conditions and peer benchmarking for the target valuation post-IPO.
Company Snapshot Details: As of April 25, 2025, the last deal price was ₹275 per share. The implied market cap is ₹418 Cr. The P/E Ratio (FY24) is 59.52x, and the P/B Ratio is 11.85x. The book value is ₹6.33. The shareholding pattern includes Deepak Chaudhary with 48.25%, Satya Chaudhary with 32.51%, and other shareholders holding 19.24%.
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