Avax Apparels And Ornaments Limited

As per financial performance, Avax Apparels And Ornaments Limited has posted total income / net profits of Rs 0.29 Cr / Rs 0.01 Cr (FY22), Rs 14.70 Cr / Rs 0.69 Cr (FY23), Rs 22.06 Cr / Rs 1.38 Cr (FY24) and Rs 15.01 Cr / Rs 0.91 Cr (H1 FY25). So as per previous financials data, company has shown good results. Company has posted an average EPS of Rs 12.21 and average RoNW of 45.27% for last three fiscals. Issue is priced at a P/BV of 1.22 as per NAV of Rs 57.46/- as on post issue. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 10.48, 5.26 and 4.01 respectively, which looks very cheaply priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, SKI Capital Services Limited is associated with this SME IPO and this is 3rd IPO from the lead manager in current financial year. From last 2 IPOs, all opened above issue price or at par on the day of listing. As of now from last 2 IPOs, all are trading above issue price or at par as on today. ( As on 03.01.25 ) As per financials, Avax Apparels And Ornaments Limited has shown good results, RoNW is 43.9% and P/E is respectively 10.48, 5.26 and 4.01 as per FY23, FY24 and annualized FY25 earnings. So, issue looks very cheaply priced, but maintaining such margins in future looks very difficult. Company is in business of wholesale trading of knitted cloth and online retail of silver ornaments, which is highly competitive business segment. Performance of BRLM post listing is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Harinderpal Singh Sodhi
• 2 Harish Kumar