Armour Security (India) Limited, headquartered in New Delhi is engaged in providing comprehensive and customised Security services, Facility Management services, and Recruitment and Staffing solutions across India. Founded in 1999, they have established ourselves as a service provider with over two decades of operational experience in delivering private security, housekeeping, fire-fighting, and security training solutions. Company also specialises in providing ancillary services like event support and branding content creation, suggesting a diversified, consultancy-oriented approach. They primarily cater to government departments, public sector undertakings (PSUs), development agencies, and private enterprises across India by providing security, facility management, and staffing solutions tailored to their operational, regulatory, and safety requirements. As per financial performance, Armour Security India Limited has posted total income / net profits of Rs 28.97 / 2.25 Cr (FY23), Rs 33.10 / Rs 2.61 Cr (FY24), Rs 36.56 Cr / 3.97 Cr (FY25) and Rs 19.69 Cr / 2.90 Cr (upto Q2 FY26). So as per previous financials data, company has shown steady results. But sudden rise in net-profit and trade receivables of around 22% of FY25 total sales raises some concerns. Company has an average EPS of Rs 3.54 and average RoNW of 27.59% for last three fiscals. Issue is priced at a P/BV of 3.78 as per NAV of Rs 15.08/- as on 31.03.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 36.74, 24.20 and 16.55 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Sobhagya Capital Options Private Limited is associated with this IPOs, and has handled 5 IPOs in last three fiscal years. From last 5 IPOs, all opened above issue price or at par, on the day of listing. As of now, from last 5 IPOs, three are trading below issue price and remaining all are trading above issue price or at par. (as on 10.01.26 ) As per financials, Armour Security India Limited has shown steady results, RoNW is 21.56% and P/E is 36.74, 24.20 and 16.55 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced, also sudden rise in net-profit just before IPO and higher trade receivables in FY25 raises doubts. Company is engaged in providing Security services, Facility Management services, and Recruitment and Staffing solutions across India, which is very competitive business segment. Performance of BRLM is poor post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment