Started in 1982, Alumilite Architecturals Limited is a Mumbai based company engaged in infrastructure facilitator offering engineering, installation, designing and fabrication services for the principal elevation of the buildings. The company work for hospitality industries, educational institutes, shopping complex, multi-storied real estate projects, SEZ projects, public utility facilities, entertainment parks, and sports complex for corporate and government projects. With the changing architectural concept in India, the company is working towards providing low maintenance, light and elegant products to meet the aesthetics design and advanced technology requirements. The contracts of the company are built to order basis to make the products based on specifications and requirements of the customers. It also imports many accessories and raw materials to meet the high standard of products demanded by the clients. The manufacturing facility of Alumilite Architecturals is located at Bhiwandi, Thane (Mumbai) to offer aluminium virgin, aluminium semi and aluminium manufactured products made of aluminium and aluminium alloys. Apart from this, the company has its own vehicle to carry fabricated materials, transport glass and profiles without damage. Company has 110 number of employees out of which 39 are employed in the manufacturing facility where fabrication takes place. On the financial performance front, AAL has posted turnover/net profits of Rs. 20.69 cr. / Rs. 0.55 cr. (FY16), Rs. 33.47 cr. / Rs. 1.23 cr. (FY17) and Rs. 30.85 cr. / Rs. 2.83 cr. (FY18). For upto Q3 of FY19, company has posted net profit of Rs. 2.58 on total revenue of Rs. 16.27 cr. So company has shown good growth in bottom line in FY18 and FY19 even though top-line decreased which raises doubts. Trade receivables for FY18, is around 9.05 Cr which is 29% of total revenue of FY18. For last three fiscals, AAL has posted an average EPS of Rs. 2.77 and an average RoNW of 16.21%. The issue is priced at a P/BV of 1.22 on the basis of its NAV of Rs. 24.58 post issue. If we annualise FY19 earnings and attribute it on fully diluted post issue equity, then asking price is at a P/E of around 9.52, thus issue appears reasonably priced and as per FY18 earnings P/E is 11.58. There is no listed peers as per RHP. On BRLM's front, for Finshore Management Services Limited this is the 12th IPO in last three fiscals and from last 10 IPOs, 3 opened below issue price, one at issue price and remaining opened above issue price with 0.5% to 20% premium on the day of listing. As of now, from last 10 IPOs, 7 are trading below issue price and remaining above issue price. ( As on 21.06.2019 ) Company has shown average results, RoNW is 16.21% and issue looks reasonably priced with respect to current earnings. Sudden increase in bottom-line since FY18 raises concerns. Performance of BRLM is very poor. So we give AVOID rating to this SME IPO.
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