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Prices at Different Valuation Levels  

10x P/E

15x P/E

20x P/E

25x P/E

30x P/E

35x P/E

Audited P/E

16.90

25.35

33.80

42.25

50.70

59.15

Forward P/E

         17.80 

26.70

35.60

44.5

53.4

62.3

Source: LBSL Research and Company Disclosures

*Audited P/E calculated using Non’15 audited numbers

** Forward P/E calculated using annualizing H1FY18 earnings

 The major portion of the IPO proceeds will be utilized for 

modernization of the company’s existing production plant 
and automation of its warehouse system. Such capacity 
expansion and adoption of technical advancement should 
enable the company to perform better in near future.  

 

The company has set aside BDT 6.34 million from IPO funds 
for loan repayment. This would decrease the company’s 
existing debt balance.

COMPANY IN FOCUS

Capital Structure of the Company  

Particulars

Amount (BDT mn

Paid-up Capital (Prior to IPO)

851.50

Capital to be issued as IPO

150.00

Paid-up Capital (after IPO)

1001.50

Source: Company Prospectus 

Key Ratios  

Particulars

Dec’17 (6 months)

Dec’16 (6 months)

FY’15

Gross Profit Margin

10.3%

9.9%

9.2%

Net Profit Margin

4.1%

3.7%

3.7%

ROE

4.9%

4.5%

10.9%

ROA

2.4%

2.2%

4.2%

Debt to Equity

1.08

1.06

1.60

Source: LBSL Research and Company Prospectus 

Source and Requirement of Utilities  

Particulars

Requirements

Source

Power

3530 KW 

The required power for production including expansion will be met through R.E.B through DEPZ. In 

addition to R.E.B there are 2 GAS generators of 1030 KW and 2 (two) diesel generators of 650 KW 

will be used in case of any disruption. No further generator is required for the proposed expansion. 

Water

Not Specified

The requisite water supply is available from DEPZ and own deep tube-well installed in the factory 

premises. 

Gas

Not Specified

QSTML meets the requirement of GAS from TITAS Gas Transmission and Distribution Company 

Limited (TGTDCL). In case of shortage of natural gas, QSTML have 2 Gasifiers, total of 13210 

KCAL/day to support efficient gas to our boilers without any disruption to the production. 

Source: Company Prospectus 

QSTML currently produces 31.08 MT and has a capacity of producing 42 MT dyed yarn 

per day. Factory of the company is located on a 10,166.67 sq. meters area at Dhaka Export 

Processing Zone, Savar, Dhaka, Bangladesh.