Arkade Developers Limited

As per financial performance, Arkade Developers Limited has posted total income / net profits of Rs 237.18 Cr / Rs 50.84 Cr (FY22), Rs 224.01 Cr / 50.77 Cr (FY23) and Rs 635.71 Cr / Rs 122.81 Cr (FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 5.71 and average RoNW of 39.94% for last three fiscals. Issue is priced at a P/BV of 6.02 as per NAV of Rs 21.28/- 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 46.74, 46.81 and 19.35 respectively, which looks fully priced. As per RHP, comparison between listed peers is given in above table. On BRLM's front, one lead manager is associated with this IPO, and have handled around 14 IPOs (SMEs & Main Board) in last three fiscals. Unistone Capital Private Limited: This is 15th IPO from this BRLM. From last 10 IPOs, all opened above issue price or at par on the day of listing. As of now, from last 10 IPOs, one is trading below issue price and remaining are trading above issue price. (As on 10.09.24) As per financials, Arkade Developers Limited has shown good results, RoNW is 46.90% and P/E is respectively 46.74, 46.81 and 19.35 as per FY22, FY23, and FY24 earnings. So, issue looks fully priced. Company is in business of real estate development with focus of premium aspirational lifestyle residential premises in Mumbai, which is highly competitive and fragmented business segmented. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Amit Mangilal Jain