Abhishek Integrations Limited

Incorporated in 2017, Abhishek Integrations Limited is a "Class A" Gujarat Governed contractor that is engaged in developing, operating, and maintenance of electrical and mechanical work and its installation at various airports in India. The company was engaged in the business of telecommunication and caballing work in BSNL but over the period, it has expanded its product portfolio and now, it is full fledge engaged in developing, operation & maintenance of LT & HT Electrical and Mechanical work and its installation at terminal building of airports, installing and maintenance of Fire fighting solutions, GLF/Airfield Lighting System, Substation including perimeter light fittings, and LT switchgears at Airports in India. The firm has currently 22 ongoing projects of Airport Authority of India (AAI) located at Ahmedabad, Allahabad, Aurgabad, Bhopal, Gaya, Gondia, Indore, Jabalpur, Jaipur, Jaisalmer, Jamnagar, Madurai, Patna, Pune, Tezpur and Vadodara. They have also awarded project by AAI for operation and maintenance of electrical and maintenance located at Port South blair South Andaman and for supply of electrical GLF spares to AAI in the region of the Patna, Ahmedabad and Gondia. On the financial performance front, AIL reported turnover/net profits (loss) of Rs. 0 cr./0.05 cr. (FY19), Rs. 0.03 cr. / Rs. 0.73 cr. (FY20) and Rs. 0.11 Cr. / Rs. 2.35 Cr. (FY21)  net profit. So company has shown growth in financial. For the last three years, company has posted average EPS of Rs. 0.74 and RoNW of 8.88%. The issue is priced at a P/BV of 2.07 based on its NAVs of Rs. 24.21 post issue. As per FY21 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 127.58. So issue looks very fully priced. As per RHP, comparison between peers is as per above table. On BRLM's front Beeline broking Limited has handled 7 IPOs in last three fiscals. From 7 IPOs, 1 opened below price and remaining above issue price. As of now from 7 IPOs, 5 is trading above issue price and remaining below issue price. ( As on 08.06.2021 ) For Abhishek Integration Limited, company has shown growth, RoNW is 4.19%, P/E is around 127.58 for FY21 earnings. So issue looks very aggressively priced and also current pandemic situation has very bad effect on this sector and it may take time to get situation normalise. Performance of BRLM is good. So we give AVOID rating to this SME IPO.

• 1 Mr. Sanjay Narbada Dubey