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Established in 1976, Tega Industries is a leading manufacturer and distributor of specialized, critical, and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry. Globally, Tega industries are the second largest producers of polymer-based mill liners, based on revenues for the year 2020. businesses. Company offer comprehensive solutions to marquee global clients in the mineral beneficiation, mining and bulk solids handling industry, through their wide product portfolio of specialized abrasion and wear-resistant rubber, polyurethane, steel and ceramic based lining components, used by their customers across different stages of mining and mineral processing, screening, grinding and material handling.

* The company's product portfolio includes over 55 mineral processing and material handling products. The sale of products accounts for 95.08 percent of revenue from operations on an average over the last three fiscal years, while the sale of services and other operating revenue accounts for 2.15 percent and 2.77 percent, respectively.

* The company had expanded its operations globally through various acquisitions in various locations, which also helped it in gaining a competitive advantage.

* Their mineral processing and material handling product offerings span a wide range of solutions in the mining, aggregates, and mineral consumables industries.

* Company have six manufacturing sites, including three in India, at Dahej in Gujarat and at Samali and Kalyani in West Bengal, and three sites in major mining hubs of Chile, South Africa and Australia, with a total built-up area of 74,255 Sq. mt.

Outlook & Valuation:

In the last 3 years, the company has shown stable growth in revenue where it grew from Rs 643 cr to Rs 856.68 cr over the period of FY19 to FY21, during the same period profit has grown from Rs 32.67 cr in FY19 to Rs 136.4 cr in FY21. The margins of the company are also expanding. The company caters to the requirement of mining companies globally. The Kolkata-based Tega Industries IPO is purely an offer of sale of 1,36,69,478 equity shares so no amount will be in use for the company's development. The company has a sufficient cash balance where the PE fund is exiting. The IPO is arriving at a PE of 22x to its EPS of Rs 20.48 for FY21. The valuation of the company seems to be attractively priced for the investors. Thus we assign a "SUBSCRIBE" rating for listing gain and long term.

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