Frog Cellsat is an SME company listed in Oct 22
Promoter is Konark Trivedi - BTech from AMU in Electronics / PG in Mobile & Satellite Comm from Westminister Uni London / ex HCL Comnet (part of HCL Tech) worked for satellite services division / founded Frog in 2004.
Supplying electronics equipment / accessories to three industries:
Telecom sector
Defense sector (relatively new 3 Cr business in FY23)
Public/private Infra (new vertical - increasing demand for Telco infra in buildings like Airport / Malls / Tunnels / Metro stations / Offices etc for improving mobile coverage)
3-4 Years topline - should achieve 500 Cr
Ebitda margins to improve with scale - current range for FY24 16%-18%
FY24 Growth guidance 45-50% - nearly all of this growth expected to come from new clients orders.
Zero debt.
Capex of 1.6 lakhs sq ft - 1 lakh sq ft manufacturing facility coming online by Q1FY24 - remaining 60K sq ft by end of Q3FY24. Major part of capex will be covered by IPO proceeds, small part from internal accruals.
Jio was onboarded as client in Dec - small order received & bigger order is under review.
Contract from BSNL/Tejas - not much booked in FY23, actual realization starts from FY24.
PLI benefits: For the forecast revenues and min eligibility, they should get 60+ Cr in 5 years - first tranche is 2.14 Cr for FY23, should come during Q2.
A solid opportunity and would alike to invite views
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