Addictive Learning Technology Limited is a professional upskilling and career services edtech platform which caters primarily to senior & mid-career professionals, and in some cases to young professionals as well. The company offers a comprehensive range of professional upskilling courses and training programs which includes Law, Finance, Compliance, Human Resources, Business Consulting, Artificial Intelligence, Content Writing and Data Science through three distinct brands LawSikho, Skill Arbitrage and Dataisgood. These educational offerings are designed to help busy professionals to learn high demand skills, develop a strong demonstrable track record & access international as well as domestic freelance work and remote jobs. They also cater to college students looking for advanced skills and recent graduates who are struggling to find jobs. One of the major focus areas is to offer upskilling courses which enable the learners to find career opportunities in the international market remotely. Some of the popular courses cover subjects like US Intellectual Property Law, US Tax Law, US Accounting, Bookkeeping and Corporate Compliances, International Contract Drafting, International Business Law, International Labour Laws, US Technology Law, US Corporate Law, US Real Estate Law etc. Further the Company also provides international bar exam courses such as: 1. CANADA BAR EXAM: Canadian Barrister & Solicitor Exam & NCA exam for Indian lawyers who want to practice in Canada. 2. UK SOLICITOR QUALIFICATION EXAM: Training for Indian lawyers to crack the solicitors Qualifying Exam (SQE) and qualify as a solicitor in England and wales. 3. CALIFORNIA BAR EXAM: How to crack the California Bar Exam and start your own legal practice in the US. As per financial performance, Addictive Learning Technology Limited has posted total income / net profits of Rs 6.78 Cr / Rs (0.05) Cr (FY21), Rs 18.59 Cr / Rs (0.49) Cr (FY22), Rs 33.54 Cr / Rs 2.47 Cr (FY23) and Rs 24.82 Cr / Rs 3.16 Cr (upto 31.08.23 FY24). So as per previous financials data, company has shown exceptional growth. Company has posted an average EPS of Rs 2.14 and average RoNW of 14.63% for last three fiscals. Issue is priced at a P/BV of (88.05) as per NAV of (1.59) as on (31.08.2023). If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around (453.64), 90.14 and 29.37 respectively, which looks aggressively priced. As per RHP, comparison between peers is shown in above table. On BRLM's front, Narnolia Financial Services Ltd is associated with this SME IPO and handled 8 SME IPOs in last 1 years. From last 7 IPOs, all are opened above issue price on the day of listing. As of now from last 7 IPO, one is trading below issue price and remaining are trading above issue price. ( As on 10.01.24 ) As per financials, Addictive Learning Technology Limited has shown good growth, RoNW is 119.79% and P/E is respectively (453.64), 90.14 and 29.37 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced and maintaining such margins & growth, in future, is very difficult. Company provides professional upskilling and career services edtech platform, which is highly competitive and fragmented segment as there is no entry barriers. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO for listing gains. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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