Adishakti Loha and Ispat Limited

Adishakti Loha and Ispat Limited, Company was originally incorporated as 'Aawas Infratech Private Limited' on January 08, 2015 under the Companies Act, 2013 with a Certificate of Incorporation issued by the Registrar of Companies, Delhi. Thereafter A fresh certificate of incorporation consequent upon change of name from 'Aawas Infratech Private Limited' to 'Adishakti Loha and Ispat Private Limited' was issued by the Registrar of Companies, Delhi on October 01, 2019. ALIL is engaged in the business of trading in metals with its core focus on trading in Iron and Steel. As on the date of this Prospectus, Company has 04 (Four) employees on its payroll. On the financial performance front, ALIL reported turnover/net profits (loss) of Rs. 0.27 Cr. / 0.23 Cr. (FY19), Rs. 10.94 cr./ (0.21) Cr. (FY20), Rs. 11.38 Cr / 0.03 Cr. (FY21) .So company has shown average results. For the last three years, company has posted average EPS of Rs. 3.83 and RoNW of 26.35%. The issue is priced at a P/BV of 1.00 based on its NAV of Rs. 10.97 post issue. As per FY21 earnings and on post issue equity, IPO is valued at P/E of around  1671, which looks very aggressively priced. Comparison between  listed peers is shown in above table, but it can't be compared apple to apple basic. On BRLM's front, Turnaround Corporate Advisor Private Limited associated with this SME IPO and handled 1 IPOs in last 3 years. From last 1 IPOs,  one opened above issue price and currently trading below issue price. ( As on 28.09.21 ) For Aditya Loha and Ispat Limited, financials are average, RoNW is 0.11% and P/E is around 1671 for FY21 earnings. So issue looks very aggressively priced. Also this sector has very high competition. BRLM has managed only one IPO. So we give AVOID rating to this SME IPO.

• 1 Mrs. Pawan Kumar Mittal