Advitiya Trade India Limited

Started in 2017, Advitiya Trade India Limited, is New Delhi based Company, engaged in multi product trading organisation operating in Aluminum and metal products, Fabrics, Glass Products, Printers and other such profitable product segments in Northern India. The promoters of company have been in this business through family proprietary concerns. They are operating similar business under various propriety firms since 1996. Strengths of company as follow:1. Experienced Promoters and a well trained employee base2. Strong Balance Sheet and Financial Condition3. Existing client and supplier relationships On financial performance front, for first eight months ended on 30.11.17 of FY18 it has earned net profit of Rs. 0.36 cr. on a turnover of Rs. 19.72 cr. Company is formed in March 2017, so much financial data is not available. Issue is priced at a P/BV of 0.96 on the basis of post issue NAV of Rs. 15.55. For first eight months of FY18, it has posted an average EPS of Rs. 0.66 on the equity base of Rs. 6 cr. as on 30.11.17. If we annualise latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 27. As per offer documents, it has no listed peers. As per current year earnings issue looks fully priced. On the merchant banker's front, this is the 23rd IPO in last three fiscals. Out of last 10 listings, 2 opened at discount to offer price, 2 at par, 5 with a premium ranging from 1% to 20% and 1 main board IPO with a premium of 74% on the listing day (Apollo Micro Systems Ltd). Company is formed in March 2017, so very less financial data is available and issue looks fully priced as per latest earnings. So, we give AVOID rating to this SME IPO.

• 1 Mr. Sandeep Goyal
• 2 Mr. Pradeep Goyal
• 3 Mrs. Deepti Goyal