Aprameya Engineering Limited is engaged in the business of installation, set up & maintenance of Intensive Care Units ('ICU'), Neonatal Intensive Care Units ('NICU'), Pediatric Intensive Care Units ('PICU'), Operation Theatre, dialysis centres and prefabricated structure ward (hereinafter referred to as 'Healthcare Infrastructure projects') in the hospitals and medical care centres on turnkey basis along with supply of high value healthcare equipment and diagnostic equipment to private hospitals, Government hospitals and medical practitioners. The company is engaged in the business of setting up of medical, healthcare infrastructure, supply of consumables, trading of medical and healthcare equipment's and maintenance of the equipment supplied and installed by the company. Company started the business as a partnership firm on September 05, 2003 and have grown the business with the objective of delivering healthcare solutions focused on cost effectiveness and improved accessibility. They are engaged in selling of high value medical equipment as a dealer of medical equipment manufacturers and suppliers such as Johnson & Johnson Private Limited, Stryker India Private Limited and many other medical equipment manufacturers. Apart from these companies they also have established cordial relationship with medical device manufacturers like Alan Electronic Systems Pvt Ltd, Draeger Medical India Private Limited, Siemens Healthcare Private Limited, Schiller Healthcare India Private Limited, Epsilon, Resmed and many other medical devices manufacturers and suppliers for easy and timely procurement. The portfolio of products and services can be classified into two different segments i.e. setting up of healthcare infrastructure within the hospitals and medical care centres and dealing in high value medical equipment. They provide need based medical equipment to hospitals, medical practitioners, and diagnostic service providers, including patient monitoring systems, cardiology devices, respiratory management systems and radiology / imaging systems. Company started the business of setting up of ICUs and operation theatres in 2020, and have since then completed the installation of around 2000 critical care beds including ICUs, NICUs, PICUs and modular operation theatre across the state of Rajasthan. These healthcare infrastructure projects have been undertaken for different government hospital namely Dr. S N Medical College - Jodhpur, Government Medical College - Kota, RMSCL - Jaipur, RNT Medical College - Udaipur and SMS Medical College - Jaipur. Further, during the Fiscal year 2024, they have undertaken setting up, installing and commissioning of dialysis centres for Rajasthan Services Medical Corporation Limited in over 150 different locations in the state of Rajasthan. As per financial performance, Aprameya Engineering Limited has posted total income / net profits of Rs 200.26 Cr / Rs 16.61 Cr (FY22), Rs 78.33 Cr / Rs 5.36 Cr (FY23) and Rs 65.62 Cr / Rs 3.45 Cr (FY24). So as per previous financials data, company has shown de-growth and trade receivables is around 88% of FY24 total income. The Order Book is Rs 842.78 lakhs as on the date of this RHP. Company has posted an average EPS of Rs 4.49 and average RoNW of 35.44% for last three fiscals. Issue is priced at a P/BV of 3.48 as per NAV of 16.69 as on 31.03.24. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 6.64, 20.57 and 31.95 respectively, which looks aggressively priced. As per RHP, there are no listed peers. On BRLM's front, Hem Securities Limited is associated with this SME IPO and handled 46 SME IPOs in last 3 years. From last 10 SME IPOs, all opened Above issue price or at par on the day of listing. As of now from last 10 SME IPOs, all are trading above issue price and remaining above issue price. ( As on 19.07.24 ) As per financials, Aprameya Engineering Limited has shown good growth, RoNW is 14.79% and P/E is respectively 6.64, 20.57 and 31.95 as per FY22, FY23 and FY24 earnings. So, issue looks aggressively priced, also company has shown de-growth and trade receivables is around 88% of FY24 total income. Company is engaged in the business of installation, set up & maintenance of healthcare infrastructure, which is highly fragmented and competitive business segment. Performance of BRLM is good. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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