ANI Integrated Services Limited

Started in 2008, ANI Integrated Services Limited is engaged in the business of manpower deputation to the organized sector for providing engineering services such as Erection and Installation of Electrical / Instrumentation / Mechanical Turnkey Projects, Operations and Maintenance, Commissioning Assistance and Shutdown services. Company provided a wide range of engineering services on various international projects, particularly in the UAE, Thailand and Kingdom of Saudi Arabia. The clients of the company include Larsen & Turbo Industries, Tata Consultancy, Reliance Industries Limited, Nestle India Limited, Engineering India Limited, Mondelez India Foods Limited, GAIL (India) Limited, etc. ANI has a team of more than 1200+ professionals. Service Verticals of ANI1. Technical Manpower Deputation and Placement2. Value Added Customized Services3. Project Installation and Erection4. Operations and maintenance Contracts On performance front, ANI has reported turnover/net profits of Rs. 19.82 cr. / Rs.1.05 cr. (FY14), Rs. 23.63 cr. / Rs. 1.16 cr. (FY15), Rs. 39.96 cr. / Rs. 1.82 cr. (FY16) and Rs. 63.61 cr. / Rs. 7.88 cr. (FY17). For Q1 of current fiscal it has posted net profit of Rs. 2.06 cr. on a turnover of Rs. 15.37 crore. For last thee fiscals it has reported average EPS of Rs. 5.83 and average RoNW of 41.75%. Asking price is at a P/BV of around 3.12 on the basis of post issue NAV of its shares. If we annualize latest earnings and attribute it on fully diluted equity post issue, then issue is priced at a P/E of around 12 against its peers TeamLease and Quess Corp trading at a P/E of around 50 and 112 respectively. Issue appears to have been priced reasonably. Peers are not comparable in true sense as they are primarily staffing companies, whereas ANI is providing services of experts on critical and time bound projects. With it's skill sharing for deputation, project and services, ANI believes that 'every business needs the right kind of people'. On merchant banker's front, this is the 42nd SME mandate from its stable so far. Out of last 10 listings, 1 issue opened at discount and the rest opened with a premium of 2 .5 to 20% premiums to offer price on the listing day. As per financials, company's growth is good (specifically FY16 and FY17 performance exceptional), RoNW is 41.75% for last three fiscals and issue is reasonably priced at P/E of 12 with unique business model. So we give SUBSCRIBE rating to this SME IPO.

• 1 Mr. Navin Nandkumar Korpe