INVESTOR MEET – DHRUV CONSULTANCY SERVICES LIMITED

HEM SECURITIES LTD. AWARD WINNING MERCHANT BANKER

DHRUV CONSULTANCY

SERVICES LIMITED

COMPANY SNAPSHOT

Company Name Dhruv Consultancy Services Limited

Registered Office Navi Mumbai, Maharashtra

Corporate Office Navi Mumbai, Maharashtra

Date of Incorporation August, 26 2003

Exchange BSE - SME

Industry Consultancy

• Incorporated on August 26, 2003 and since then they are into infrastructure consultancy. Company provides design, engineering, procurement, construction and integrated project management services for Highways, Bridges, Tunnels, Architectural, Environmental Engineering and Ports.

• Over the years company has developed a track record of working majority of projects with government bodies and

public sector undertakings. • Being a consultancy organisation, They believe that human capital is one of most valuable assets. They have a qualified

and professional employee base of over 313 employees, including 240 Engineers as on December 31, 2017.

• Company’s total revenue has increased from Rs. 510.85 lakhs for Fiscal 2013 to Rs. 3046.24 lakhs for Fiscal 2017, at a CAGR of 56.27%. Net profit as restated has increased from Rs. 34.52 lakhs for Fiscal 2013 to Rs. 308.16 lakhs for Fiscal 2017, at a CAGR of 72.85%.

• Company deals in varied services. The diversified range of services helps them to cater different spectrum of clients which also increases their clientele base all over India. Their service sector includes Highways, Bridges, Tunnels, Architecture, Environmental and Ports.

• The majority of their business has been concentrated in Maharashtra, They also have relationships with clients outside Maharashtra. Now they are propose to focus on improving their relationships in strategically important areas such as Ahmedabad, Bangalore, Chennai, New Delhi, Hyderabad and Mumbai.

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COMPANY TIMELINE 3

ESTABLISHMENT Started with 4 employees

in a 200 sq. ft. rented office

FIRST PMC WORK Bhiwandi Kalyan

Shilphata Road by PLUS Expressway BERHAD

TEN YEARS COMPLETION

Empanelment with Ministry of Road

Transport & Highways

HIGHEST WORK ORDER RECEIVED

National Highway Bridge Inspection in

Gujarat and Maharashtra

PRESENT More than 300

employees working in 11 states across the

nation with office space of 10,000 sq.ft. DPR Works of 1300 Km,

Authority Engineer’s Works of 740 Km

2003 2006 2013 2015 2018

2003 – Till Date

HIGHWAY SECTOR 4

DETAILED PROJECT REPORT

COMPLETED MORE THAN 75

WORKS

CONSTRUCTION SUPERVISION

COMPLETED 300 KMS AND 800 KMS

CURRENTLY ONGOING

OPERATION AND MAINTENANCE

MAJOR WORKS: NH4 SECTION OF

MUMBAI PUNE, MPEW AND SATARA

KAGAL

INDEPENDENT ENGINEER

1. Solapur Yedshi- 98.71 Km

2. Yedshi Aurangabad- 190.20 Km

3. Khed Sinner- 135.00 Km

CONTRIBUTES FOR 80% WORKS

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BRIDGES & TUNNEL SECTOR 5

SAVITRI RIVER BRIDGE IN MAHAD

• 3-LANE MAJOR BRIDGE ON NH-17

• COMPLETED IN A RECORD

PERIOD OF 165 DAYS • AWARDED WITH

EXCELLENCY CERTIFICATE BY HON. MINISTER SHRI NITIN GADKARI

NATIONAL HIGHWAY BRIDGE INSPECTION

• GUJARAT

• TOTAL KM – 5062 KMS

• AWARD VALUE – RS. 17 CR.

• MAHARASHTRA, GOA AND

DADRA & NAGAR HAVELI

• TOTAL KM – 7727 KMS

• AWARD VALUE – RS. 20 CR

MUMBAI PUNE EXPRESSWAY CAPACITY AUGMENTATION

MANALI TO SHIMLA PARALLEL ROUTE

BRIDGE DESIGN, CONSTRUCTION SUPERVISION AND INSPECTION

ARCHITECTURAL, ENVIRONMENTAL & PORT WORKS

ASHTAVINAYAK RE-DEVELOPMENT

AMRUT SMART CITY PROJECTS

FOR 8 CITIES

ARCHITECTURAL

PLANNING &

DESIGN

SMART CITIES

INTERIOR

DESIGNING

01 02

HERITAGE

CONSERVATION 03

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ENVIRONMENTAL – DESIGN OF SEWAGE TREATMENT PLANTS GOT PMC OF 135 NAGAR

PANCHAYATS IN MAHARSHTRA WHICH INCLUDES STP.

DEVELOPMENT OF JALNA AND WARDHA DRY PORT

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ARCHITECTURE PLANNING AND DESIGNING

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TENDER EVALUATION

Feasibility Study and Preparation of DPR for up gradation to 2 lane with paved shoulder of MSH-15 from Bankot - Mandangad - Mahad - Rajewadi- Raigad District Border in Ratnagiri and Raigad Districts approximate length Km.98.00 And SH-97 from Mahad Junction (at Km 123/400 on NH-66) to Raigad Fort.

Sr. No Name of Bidder Financial

Bid

Technical

Marks

Technical

Score

Financial

Score Total

1 L&T Infrastructure Engineering Limited 38710500 91.25 73.00 17.82 90.82

2 VOYANTS SOLUTIONS PRIVATE LIMITED 26852700 92.30 73.84 OUT OUT

3 SOWIL LIMITED 34487400 83.85 67.08 20.00 87.08

4 DHRUV CONSULTANCY SERVICES PVT LTD. 37620000 96.25 77.00 18.33 95.33

5 MONARCH SURVEYORS AND ENGG CONSULTANTS PVT LTD

36373300 90.00 72.00 18.96 90.96

Total 174043900

Average 34808780

Above 20% 41770536

Below 20% 27847024

DPR Rate Rs.1.5 Lakhs/Km Our Quoted Rate Rs. 3.06 Lakhs/Km Expected Profit 51%

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MBIU MAHARASHTRA EVALUATION

Sr. No Name of Bidder Financia

l Bid

Technica

l Marks

Technic

al Score

Financial

Score Total

1 S N Bhobe & Associates Pvt. Ltd 153698669 84.58 67.66 20 87.66

2 Dhruv Consultancy Services Pvt. Ltd 175500000 87.71 70.17 17.52 87.68

3 Sowil Limited 180100000 79.03 63.22 17.07 80.29

4 Casta Engineers Pvt. Ltd 179350000 81.06 64.85 17.14 81.99

Our financial quote is much higher than the lowest bidder (L1), but due

to strong technical marks we got this work by a difference of 0.02.

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EMPLOYEE STRENGTH

Category No. of Employees

Administrative Staff 23

Skilled Workers 236

Semi-Skilled Workers 37

Unskilled Workers 17

Total 313

As of December 31, 2017 They have employed 313 full-time employees at their locations and project sites. They have employed a prudent mix of the experienced staff and youth which gives them the dual advantage.

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MANAGEMENT TEAM

Mrs. Jayashri P. Dandawate Chairman and Executive Director • Graduate in Home Science with a professional experience of 22 years. • She is the proprietor of Tanvi Enterprises, Sanpada, Navi Mumbai since

the year 1998 and also of Tanvi Motor Driving School, Sanpada, Navi Mumbai since 2005.

Mr. Pandurang B. Dandawate Non Executive Director and Promoter • B.E. (Civil) with Professional experience of 33 years • Worked in Maharashtra state PWD and MSRDC for 19 years and has a vast

experience in roads and bridge constructions, tolls and BOT projects. • He heads the company since last 12 years.

Mrs. Tanvi Auti Managing Director • B.E. (Civil) with Professional experience of 3 years • Worked in Hiranandani Construction, Mumbai and Simplex Infrastructure

Limited as an Engineer Trainee. • She oversees the overall functioning of the Company.

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Contd.

Mr. Milind V. Kulkarni Joint Managing Director • B. E (Civil) with professional experience of 33 years. • He has worked in Maharashtra State Public Works Department (PWD) for

30 years and has a vast experience in this field. • He is a Certified by the Indian Institution of Valuers (India) as a

Chartered Valuer for the Category of Immovable Property.

Mr. Sandeep B. Dandawate Executive Director • Diploma (Civil) with professional experience more than 20 years. • He oversees the project implementation, project estimation and project

engineering of the projects that we undertake.

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GROWTH OPPORTUNITIES

Overview of the Infrastructure Sector in India Infrastructure sector is a key driver for the Indian economy. Our country needs massive investments estimated to be in excess of Rs 50 lakh crore in infrastructure to increase growth of GDP, connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality services to our people. GOVERNMENT INITIATIVES DRIVING GROWTH IN THE SECTOR Railways and Metro Rail • For 2017-18, the total capital and development expenditure of Railways has been pegged at US$ 20.33 billion. • As per 2017-18 Budget, railway lines of 3,500 kms will be commissioned in FY18. Roads and Airports •Budget allocation for road sector increased to US$ 10.07 billion in 2017-18 from US$ 8.99 billion in 2016-17. •2,000 kms of coastal connectivity roads have been identified for construction and development .

Construction •In 2017, government announced plans to facilitate higher investment in affordable housing

Consultancy Service Consultancy services are emerging as one of the fastest growing service segments in India cutting across different sectors with some overlapping. The Government of India has taken many initiatives to help the consulting industry, including the Marketing Development Assistance and Market Access Initiative schemes; coming out with guidelines on broad policies and procedures for selection, contracting and monitoring of consultants; and initiatives aimed towards capacity development of domestic consultants and sensitization of client organizations. Recent initiatives taken by the government such as Make in India, development of smart cities, skill development, along with the focus on improving industrial policies and procedures, have opened up a plethora of opportunities for consultants.

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GROWTH OPPORTUNITIES

TENDERS FOR FEASIBILITY STUDY AND DETAILED PROJECT REPORTS HAVE BEEN OPENED ON THE WEBSITE OF MINISTRY. PROJECT COST – RS. 7 LAKH CRORE DURATION - 5 YEARS

CONSULTANCY BUSINESS EXPECTED DPR 1.5% - RS. 10,500 CR

SUPERVISION 2% - RS. 14,000 CR

TOTAL – RS. 24,500 CR BUSINESS OF RS. 5000 CR PER YEAR

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BHARATMALA PARIYOJANA

ISSUE DETAILS

ISSUE OPENS 27th April, 2018

ISSUE CLOSES 2nd May, 2018

LISTING ON BSE SME

LEAD MANAGER TO THE ISSUE

Hem Securities Limited

REGISTRAR TO THE ISSUE

Link Intime India Private Limited

RESERVATION FOR NO OF SHARE

Market Maker 2,24,000

RII 20,36,000

Other Then RII 20,36,000

NO OF SHARE

Pre Issue 1,00,00,000

Post Issue 1,42,96,000

IPO DETAILS

Issue Size (No of Share) 42,96,000

Fresh Issue (No of Share) 42,96,000

Issue Size In Rs 23.19 Cr

Face Value Rs.10

Issue Price Rs. 54

Post Issue No Of Share 1,42,96,000

Post Issue Paid Up Capital 14.29 Cr

Post Issue Implied Market Cap

77.19 Cr

SHARE HOLDING PATTERN PRE IPO POST IPO

Promoter Holding 100% 69.95%

Public Holding 0.00% 30.05%

BID LOT

RII 2000

Other Then RII 4000 & in multiples of 2000

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OBJECTS OF THE ISSUE

OBJECTS AMOUNT ALLOCATED IN (Rs. In Crore)

Repayment/ prepayment of certain indebtedness 5.12

To Meet Working Capital requirements 11.60

General Corporate Expenses; 4.53

Issue Expenses 1.94

Total 23.19

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COMPETITOR ANALYSIS

Face Value EPS PE RONW Book Value

Artefact Projects ltd. 10 0.35 129.00 0.54 64.17

MITCON Consultancy & EngineeringServices Limited

10 3.66 18.84 4.80 76.13

Dhruv Consultancy Services Ltd* 10 7.2 7.5 35.48 228.54

0

30

60

90

120

150

180

210

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SEGMENTAL REVENUE

Division FY 13 FY 14 FY 15 FY 16 FY 17

Highways 4.73 9.03 9.39 10.64 23.79

Bridges - - - 4.43 5.98

Tunnels 0.26 - - - 0.05

Architectural - - 0.04 0.02 0.02

Environmental Engineering - - 0.03 0.03 0.02

Ports - - - - 0.57

Total Consultancy Income 4.99 9.03 9.46 15.11 30.43

Amount In (Rs. Cr)

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REVENUE STATEMENT

Particulars Amount In (Rs. Cr) As At

30-12-2017 31-3-2017 31-3-2016 31-3-2015 31-3-2014 31-3-2013

Revenue 33.48 30.44 15.11 9.45 9.02 4.99

Expenditure 24.10 22.79 11.65 7.80 7.28 4.43

Operating Profit 9.38 7.65 3.46 1.65 1.74 0.56

Operating Profit Margin % 28.02 25.13 22.89 17.46 19.29 11.22

Other Income 0.039 0.021 0.037 0.28 0.14 0.11

Depreciation 0.72 0.85 0.34 0.297 0.066 0.07

EBIT 8.69 6.82 3.15 1.63 1.814 0.6

Interest 1.28 1.87 0.86 0.29 0.11 0.05

PBT 7.41 4.95 2.28 1.34 1.70 0.55

Tax 2.007 1.864 0.96 0.55 0.57 0.20

PAT 5.40 3.08 1.32 0.79 1.13 0.35

NPM % 16.13 10.11 8.73 8.35 12.52 7.01

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BALANCE SHEET

Particulars Amount In (Rs. Cr) As At

31-12-2017 31-3-2017 31-3-2016 31-3-2015 31-3-2014 31-3-2013

LIABILITIES

Share Capital 1.00 0.38 0.30 0.30 0.30 0.20 Reserves & Surplus 13.09 8.30 5.22 3.90 3.11 1.98 Net worth 14.09 8.68 5.52 4.20 3.41 2.18 Share Application Money Pending

Non Current Liabilities

- Long Term Borrowings 5.34 5.70 4.34 0.81 0.23 - - Deferred Tax Liabilities (Net) - - - - - - - Other Long Term Liabilities 1.03 0.88 0.50 0.35 0.19 0.12 - Long Term Provision - - - - - -

Current Liabilities 22.53 15.23 7.56 7.14 3.56 2.58 Total Liabilities 42.99 30.50 17.92 12.50 7.39 4.88

ASSETS

Non Current Assets

- Fixed Assets 6.88 5.30 3.04 1.18 0.93 0.50 - Non Current Investments - - 0.006 0.006 0.16 0.006 - Long Term Loans and Advances - - - - - - - Deferred tax assets (Net) 0.34 0.29 0.20 0.19 0.15 0.16 - Other Non Current Assets - - - - - -

Current Assets 35.77 24.91 14.68 11.13 6.16 4.22 Total Assets 42.99 30.50 17.92 12.50 7.39 4.88

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FINANCIAL RATIOS

Particulars For Period Ended

31-12-2017* 2017 2016 2015 2014 2013

Return on Net worth (%) 38.34 35.48 23.94 18.80 33.03 15.80

EBITDA Margin (%) 28.02 25.13 22.89 17.46 19.29 11.22

Current Ratio 1.59 1.63 1.94 1.55 1.72 1.63

Restated Basic and Diluted Weighted Average Earning Per Share

5.40 3.10 1.33 0.80 1.15 0.35

Adjusted Net asset value per share (In Rs.) 140.86 228.54 184.10 140.03 113.7 109.23

*Figures are not annualized

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STRONG FINANCIAL GROWTH

2013 2014 2015 2016 2017

Revenue 5.10 9.16 9.74 15.15 30.46

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Revenue

2013 2014 2015 2016 2017

EBITDA 0.56 1.74 1.65 3.46 7.65

0.00

2.00

4.00

6.00

8.00

10.00

EBITDA

2013 2014 2015 2016 2017

PAT 0.35 1.13 0.79 1.32 3.08

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

PAT

2013 2014 2015 2016 2017

ROCE 47.00 60.00 30.00 30.00 44.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

ROCE

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In Rs. Crore

In Rs. Crore

In Rs. Crore

In %

INVESTMENT RATIONALE

Valuation : Company is bringing the issue at PE multiple of 7.50 on pre issue annualized FY18 eps of Rs. 7.20 at a price of Rs. 54/- per Share.

Healthy Financial Performance: Company has shown strong financial performance during FY17 as it has posted strong operating & net profit margin of 25.13 % & 10.11% respectively during FY17.Also, co has generated strong return on shareholder’s fund of 35.48% during the same year. During FY13-17, the Company’s Revenue and Profit have grown at 57.16% and 72.23% CAGR respectively

Strong Client Base : Customer are mainly PSUs & Government Corporations. Company’s major clientele includes Ministry of Road Transport and Highways, National Highways Authority of India, The City and Industrial Development Corporation of Maharashtra Ltd., Jawaharlal Nehru Port Trust, Maharashtra State Road Development Corporation, Mumbai Metropolitan Region Development Authority, Public Works Department, Maharashtra Tourism etc.

Wide Range of Services: Company deals in varied services. The diversified range of services helps them to cater different spectrum of clients which also increases their clientele base all over India. Their service sector includes Highways, Bridges, Tunnels, Architecture, Environmental and Ports.

Strong Order Book: Company is having Strong order book of Rs. 131.41 Crores as on 31st December, 2017.

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DISCLAIMER

Disclaimer: * For additional information & risk factors please refer to Draft Prospectus. • This document is provided for assistance only and not intended to be taken alone for the basis for an investment

decision. • Our presentation/proposal may include predictions, estimates, management opinions or other information that

might be considered forward-looking. These forward-looking statements represent our current judgment on the future, they are subject to risks and uncertainties that could cause actual results to differ materially. Such forward-looking statements are subject to risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements.

• Hem Securities Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

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REACH US

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HEM SECURITIES LTD. AWARD WINNING MERCHANT BANKER

A – 904, Naman Midtown, Senapati Bapat Marg, Elphinstone Rd, Lower

Parel, Mumbai - 400013 Tel: +91 - 22 – 4906 0000

Email ID: ib@hemsecurities.com Website: www.hemsecurities.com

501, Pujit Plaza, Palm Beach Road, Sector - 11, Opp. K-Star Hotel, Near CBD Station, CBD Belapur, Navi Mumbai-400614. Telephone: +91 022 – 27570710 E-mail ID: cs@dhruvconsultancy.in Website: www.dhruvconsultancy.in

DHRUV CONSULTANCY SERVICES LIMITED

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