Akiko Global Services Limited is a channel partner for major banks and Non-Banking Financial Companies (NBFCs) in India, with six years of expertise and experience, working majorly in the distribution and sales of financial products such as credit cards and loans. They are using a Customer Relationship Management ('CRM') system in our day-to-day operations. All leads undergo injection and monitoring within the CRM, developed by the Company. The company specializes in selling credit cards and personal loans on behalf of banks and financial institution in India. They predominantly focus on sustainable growth and expanding the customer base, in line with the successful business model which includes telemarketing, feet-on-street, digital marketing, and corporate activities. As on April 30, 2024, the company has 418 permanent employees including the Directors and key managerial persons. As per financial performance, Akiko Global Services Limited has posted total income / net profits of Rs 6.10 Cr / Rs 0.23 Cr (FY21), Rs 13.53 Cr / Rs 0.78 Cr (FY22), Rs 39.58 Cr / Rs 4.53 Cr (FY23) and Rs 26.09 Cr / Rs 3.21 Cr (Upto 31.01.24 FY24). So as per previous financials data, company has shown sudden growth, which is very surprising. Company has posted an average EPS of Rs 7.40 and average RoNW of 68.71% for last three fiscals. Issue is priced at a P/BV of 3.75 as per NAV of 20.52 as on 31.01.24. If we attribute latest earnings of FY22, FY23 and annualized FY24 on fully diluted equity post issue, then asking price is at a P/E of around 106.52, 18.30 and 21.50 respectively, which looks fully priced. As per RHP, there is no listed peers. On BRLM's front, Fast Track Finsec Private Limited is associated with this SME IPO and handled 6 SME IPOs in last 3 year. From last 6 SME IPOs, all opened above issue price or at par on the day of listing. As of now from last 6 SME IPOs, two trading below issue price and remaining are trading above issue price. ( As on 19.06.24 ) As per financials, Akiko Global Services Limited has shown average results, RoNW is 78.36% and P/E is respectively 106.52, 18.30 and 21.50 as per FY22, FY23 and annualized FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit is very surprising. Company is working as a channel partner for major banks and Non-Banking Financial Companies (NBFCs) in India, which is highly competitive and fragmented business segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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