Ahasolar Technologies Limited

As per financial performance, Ahasolar Technologies Limited has posted total income/net profits of Rs 1.29 Cr / Rs 0.02 Cr (FY20) Rs 1.88 Cr / Rs 0.08 Cr (FY21), Rs 17.15 Cr / Rs 0.69 Cr (FY22) and Rs 21.05 Cr / Rs 1.76 Cr (FY23), So company has shown good growth. Sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 4.57/- and average RoNW of 48.69% for last three fiscals. Issue is priced at a P/BV of 2.86 as per NAV of Rs 54.83/- (Post issue). As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 70.51 and as per FY23 earnings P/E is 27.44. As per RHP, there are no listed peers. On BRLM's front, Beeline Capital Advisors Private Limited is associated with this SME IPO and handled 13 SME IPOs in last 2 years, Last 10 IPOs, All opened above issue price on the listing day. As of now from last 10 IPOs, 2 are trading below issue price and remaining are trading above issue price. ( As on 06.07.23 ) As per financials, Ahasolar Technologies Limited has shown good results, RoNW is 43.54% and P/E is respectively 70.51 and 27.44 as per FY22 and FY23 earnings, which looks aggressively priced. Sudden rise in net-profit just before IPO raises doubts. Company is in business of related to Solar, which is a high growth sector in Bharat. Also sector has very high competition and fragmented. Performance of BRLM is good. So we are giving AVOID rating to this SME IPO, readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Piyushkumar Vasantlal Bhatt
• 2 Mr. Pulkit Dhingra
• 3 Mr. Shatrughan Harinarayan Yadav
• 4 Mr. Vipin Sharma