Baweja Studios Limited is a production house in the Bollywood film industry. Starting out the promotor producing journey with a blockbuster. Over the years he produced and directed over 14 films and established himself and they believe that he soon become a key player in the industry with a very strong goodwill. With an experience of over three decades in the film industry, Harry Baweja with his vast experience has handled various areas of business including strategic planning, implementation and has led the Company’s operation over the years. The Promoters have a long history of creating Hindi and Punjabi films backed by an extensive film library. Chaar Sahibzaade, Love Story 2050, Qayamat, Bhaukaal, are some of the popular productions of the Company. Further, the Company has also been engaged in the business of trading of movie rights, where they purchase rights connected to a movie from producers and onward trade them to the exhibitors / streaming platforms. The Company has been steadily growing in the field of motion picture production since its inception. They have produced over 22 projects and have 6 films under production and another 7 under pre-production stages. They believe that they would be able to release the under-production project in the next fiscal. Further, the Company is also engaged in various other projects which are presently under the research & development stage. Further to the primary objectives of making films, the secondary objective is to amplify the films IP by cutting across various derivatives for the same, which could include, remakes, sequels and/or prequels (Chaar Sahibzaade :2, foreign language productions, stage plays, web-series, television productions, documentaries, electronic books (currently in production), comic books, print publications, games (Super V), merchandising, adaptations in different formats across different modes and media, spin-offs, etc. As per financial performance, Baweja Studios Limited has posted total income / net profits of Rs 19.54 Cr / Rs 7.65 Cr (FY21), Rs 40.97 Cr / Rs 2.76 Cr (FY22), Rs 76.28 Cr / Rs 7.97 Cr (FY23) and Rs 38.90 Cr / Rs 4.35 Cr (upto Q2 FY24). So as per previous financials data, company has shown good growth. Also trade receivables are above 30% of FY23 revenue. Company has posted an average EPS of Rs 6.16 and average RoNW of 61.20% for last three fiscals. Issue is priced at a P/BV of 10.72 as per NAV of 16.79 as on 30.09.23. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 120.22, 43.25 and 38.10 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Fedex Securities Private Limited is associated with this SME IPO and handled 15 SME IPOs in last 3 year. From last 10 IPOs, three opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 IPOs, four are trading below issue price and remaining are trading above issue price. ( As on 19.01.24 ) As per financials, Baweja Studios Limited has shown good results, RoNW is 40.12% and P/E is respectively 120.22, 43.25 and 38.10 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is a production house in the Bollywood film industry, which is highly competitive and fragmented segment. Performance of BRLM is average. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment