ADJIA Technologies Limited

Started in 2015, Adjia Technologies Private Limited is engaged in business of offering augmented reality and virtual reality related services to various customers electronically. The company have built technology and solutions for multiple areas of the business which enables one Company to increase efficiency. The company  provide dynamic pricing and sector specific approach. Company is also engaged in Software Consultancy services. Company develops mobile applications / computer software which allows the images to be displayed in AugmentedReality. Augmented Reality enables brands and product owners to transform images, objects and locations into interactive and immersive digital experiences by putting unforgettable Augmented Reality experiences right at audience’s fingertips. It can also be shown straight onto their mobile device. It can be used to enhance the user experience and present products in more innovative and immersive manner. The company provide graphics creation and support services for Augmented Reality Product demonstrations such as catalogues, videos, presentations. Major utilisation of this technology is observed in education, real estate, textile retail, e-commerce, automobiles and entertainment industry. On the financial performance front, Adjia Technologies Limited has reported turnover/net profits (loss) of  Rs. 0.10 cr. / Rs. 0.01 cr. in FY20 . For upto Q3 of FY21, company has posted 0.17 Cr total income and 0.05 Cr net profit. For the last three years, company has posted average EPS of Rs. 0.18 and RoNW of 8.69%. The issue is priced at a P/BV of 2.46 based on its NAVs of Rs. 30.05 post issue. As per FY20 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 362. If we annualise latest earnings of FY21 on fully diluted equity, than P/E is around 87. So issue looks very aggressively priced.  On BRLM's front Shreni Shares Private Limited has handled 4 IPOs in last three fiscals. All  are opened above issue price on the day of listings. As of now from 4 IPOs, 3 are trading above issue price and remaining below issue price. ( As on 01.03.2021 ) For Adjia Technologies Limited, very limited financial data is available, RoNW is 48.83%, P/E is 361.89 for FY20 and 87 for annualised FY21. So issue looks aggressively priced. Technology sector has very high competition and growth opportunities. Performance of BRLM is good. So we give AVOID rating to this SME IPO.

• 1 MR. Roshan Kumar Rawal