A Stock Broker's Analysis Of Lava International Ltd

Mobile handset solution provider Lava International Ltd. is India's third-largest feature phone company, with a market share of 13.4% in terms of sales volume in 2020-21, as per Frost & Sullivan. The company recorded a market share of 10.2% in the phone segment, which cost less than $70 in India in 2020-21. The company holds the fifth position in the world, with a market share of 5% in terms of sales volume in 2020. Since its inception, the company has been performing well in its business and the unlisted share market, providing golden opportunities to retail investors to earn high ROI by investing in Lava unlisted shares in India. This write-up will shed light upon Lava International's business model, financial growth, unlisted shares, and IPO details. Stride along till the end!

An Overview Of Lava International Ltd.

Founded in 2009, Lava International is an Indian multinational company in the mobile handset industry. It is a significant telecommunication venture that Hari Om Sai, Shailendra Nath Sai, Sunil Bhalla, and Vishal Sehgal started. Since its inception, the company has been manufacturing remarkable mobile handsets with design capability, including mechanical hardware, and industrial and software design. Today, the company has a presence in over 20 countries, and its business spans India, North America, the Middle East, and SouthEast Asia. In addition, Lava products are accessible via a countrywide retail network of 1.65 lakh retailers serving 1000 distributors directly. The large expansion of Lava in the markets makes Lava unlisted shares worth buying.

Lava Business Model

Lava International Ltd is engaged in manufacturing, buying, selling, exporting, importing, commissioning, hiring, and servicing telecommunication, electronic, and electrical equipment under its own LAVA and XOLO brands. Further, the company is also engaged in trading mobile phones, accessories, and investment holding. Lava International has a wide product portfolio comprising feature phones, tablets, and smartphones, including multiple model bars and touch form factors at different price points catering to all categories of consumers. Today, the company has two big manufacturing plants in India and is one of the few Indian brands that designs devices in India. Moreover, the company has its in-house research team, department centre, and manufacturing facilities in Noida. The robust business model of Lava attracts retail investors to invest in Lava unlisted shares.

Financial Performance Of Lava International Ltd.

Since its inception, Lava International Ltd. has witnessed growth in its mobile segment business and has earned high revenue growth, profit, EPS, and EBITDA growth. The company's total revenue increased by 6.78% in FY22 from FY21. It happened because the company acquired Panama-based B mobile group in 2022, which offers access to established companies in 31 Latin American countries. The EBITDA of the company surged by 36.95% in FY22 from FY21. Moreover, the company has also endorsed a multi-layer contract with HMD Global to manufacture, design, and disseminate mobile handsets under the Nokia brand in India and worldwide.

Check the financial performance of Lava International Ltd. for the last three years

(Rupees in Crore).

Undoubtedly, the company is performing well compared to its competitors and has increased its operations in domestic and international markets. The remarkable financial performance of the company over the years offers investors a chance to earn high returns by investing in its unlisted shares. Check out the Lava share price in India below.

Lava IPO Details & Strengths

Lava International filed a draft red herring prospectus (DRHP) with SEBI to raise about Rs. 1400-1500 crore from the market. Lava International IPO comprises a fresh issue of Rs. 500 crores and offers for the sale of shares of up to 43.73 million during IPO by the company's current shareholders and promoters. The selling shareholders of the company include promoters and directors. Hari Om Rai, Lava's Chairman and MD, will sell 1.25 crore shares; on the other hand, Shailendra Nath Rai, co-founder of Lava will sell 31.35 lakh shares. At the same time, Sehgal and Bhalla will offload 73.38 lakh shares each. All four promoters of the company own a 79.33% stake in the company. Further, the company also said that it might hold a private placement round to raise about Rs. 100 crores before IPO.

In addition, the company reveals that the money raised in the IPO will be used for marketing, funding acquisition, brand-building initiatives, and other critical strategic initiatives. It might also use cash to invest in its subsidiaries and fulfil its working capital requirements by funding. Well, the Lava International IPO is under process, so it is high time for investors to check Lava International share price and invest before the company goes public and gets a high ROI.

Why Consider Investing In Lava International Unlisted Shares?

With state-of-the-art manufacturing, integration of advanced technology, and quality service capabilities, the company has become the world's third-largest feature phone company. Today, Lava International Ltd. is a renowned name in the handset market worldwide. The company's strength lies in its national and international markets, from where it earns flabbergasting revenue.

As the company deals in the smartphone market nationally and internationally, the global smartphone market is expected to grow from USD 484.81 billion in FY22 to USD 792.51 billion by FY29, with a CAGR of 7.3% during the predicted period. Lava International will undoubtedly play a significant role in contributing to the global smartphone market. Lava unlisted shares should be your ideal investment option if you plan to invest in unlisted shares. Check Lava unlisted share price and connect with Stockify to buy Lava unlisted shares.