Mallcom India – Safety Equipment manufacturer

Company declared a decent result.
PROS

1. Operation commenced at Ahmedabad plant in FY22. With regular orders being shipped to Europe productivity and shipments expected to improve further in FY23.
2. Phase -1 of Ghatakpukur plant expected to be inaugurated on 1st July 22 as per Q4 ppt., however no announcement till date.
3. Increased receivables in FY 22 due to high turnover during last two months of the quarters.
   The signing of FTA agreements in Australia and UAE has opened up these markets and the company is expecting breakthrough with new contracts being signed in current FY in these geographies and is targetting the UK and Canada and expansion in USA subsequently.
4. ISO certified one stop solution and one of the largest exporters of PPE.
5. 90% repeat orders shows good quality and reliability.

Cons

1. Extended cash conversion cycle, increased receivables.
2. Low free float, 92% held by promoters and one individual.
3. 41% revenue from export to Europe, likely recession in EU can affect revenue over 1-2 years.