AAA Technologies Limited

AAA Technologies Limited, started in 2000 and based in Mumbai - Maharashtra, is an Information Technology and Information Security Auditing & Consulting Company offering a platform that enables organizations to identify the issues of corporate governance of the information system in computerized environment and execute security controls to safeguard information and information system. Company offers IT audit services like Information System Audit, Cyber Security, IT Assurance &Compliance, Information Security and IT Governance to BFSI, Government, Regulatory Agencies and Public and Private Sector Organizations. To Procure business from BFSI, Government, Regulatory Agencies and Public Sector Companies they bid for tenders available for CERT-In empaneled IT Security Organizations and NICSI. Company has resources capable of auditing operating systems, networking, IDS, web application, ERP, ATM, core banking, forensic, websites, computer crime investigations etc. Over the years the Company has given services to various industries like banking, insurance, Financial Institutions, NBFCs, Regulatory Bodies, Government, Municipalities and Panchayats, Payment Gateways, Stock Brokers, Education, Travel and Transport, Hospitality, Manufacturing and Engineering, Infrastructure, Healthcare, Information Technology, IT Enabled Services (ITeS),Ports, Power, Trading Corporations, Entertainment, E-Tendering, Defense and refineries which has enabled the Company become sector-agnostic and consequently it has no dependency on any single industry for procuring business. On the financial performance front, for the last three fiscals, AAA Technologies has reported turnover/net profits (loss) of Rs. 10.40 cr. / Rs. 0.99 cr. (FY18), Rs. 10.48 cr. / Rs. 2.06 cr. (FY19) and Rs. 14.25 cr. / Rs. 3.70 cr. (FY20). So company has shown very good growth in FY20. For the last three fiscals, company has posted average EPS of Rs. 4.60 and an average RoNW of 31.80%. The issue is priced at a P/BV of 1.68 based on its NAVs of Rs. 25.05 post issue. As per FY20 earnings, on fully diluted equity post issue, it is priced at P/E of 10. So as per FY20 earnings issue looks fairly priced. Promotors taking around Rs 1.5 Cr as salary around 33% of employee expenses. As per RHP there is no listed peers. On BRLM's front for Chartered Finance Management Limited, this is the 1st IPO. ( As on 28.09.2020 ) Company has shown good growth in FY21 and issue is priced at P/E of around 10 as per FY20 earnings, which is fairly priced in current scenario. Growth opportunities in security auditing and company consulting are very good, but there will be very high competition for local players. Also if company may able to generate profit with this much margin, is very important for future growth. So we give NEUTRAL rating to this SME IPO.

• 1 MR. ANJAY RATANLAL AGARWAL
• 2 MR. VENUGOPAL MADANLAL DHOOT
• 3 MRS. RUCHI ANJAY AGARWAL