Benchmark Computer Solutions Limited is an IT infrastructure solutions and technology consultancy and software development company. The Company provides end-to-end technology and technology related services including IT Infrastructure and Software Development Services. The Company provides service models such as IaaS (Infrastructure as a Service) and SaaS (Software as a Service). The Service portfolio of the company comprises of IT Infrastructure solutions, Software and Web Based Application Development Services and Annual Maintenance Contract (AMC) and Facility Management Services (FMS) . Using its extensive understanding of its customers' businesses and leveraging a combination of advanced technologies and expertise, company provides tailored solutions designed to deliver differentiated outcomes. The Company has deep domain knowledge across industry sectors and technology expertise across traditional and new age technologies. Company is authorised partner to multiple OEM’s including HP, SafeAeon, Veeam, Vertiv, Lenovo, Konika Minolta Business Solutions and Dell Technologies. They are certified with ISO 9001: 2015 and ISO 27001: 2013 from SN Registrars (Holdings) Limited, UK and Quality Control Certification, UK for Installation of Hardware of IT Related products and providing Services as per customer requirements. Company’s Core Business can be divided into following categories: a) IT Infrastructure solutions and services: This segment consists of various services such as IT Equipment rental and sales, IT networking solutions, Data centre Solutions, IT Security and Data backup and recovery. b) Software and Web Based Application Development Services: This segment consists of building of own software as well as web-based applications and websites as per the client’s requirement. c) Annual Maintenance Contract (AMC) and Facility Management Services (FMS) : Under this segment, They provide maintenance and support services to the clients based on the formal contract executed by providing technical expert for the same. As per financial performance, Benchmark Computer Solutions Limited has posted total income / net profits of Rs 15.08 Cr / Rs 0.97 Cr (FY21), Rs 19.04 Cr / Rs 0.83 Cr (FY22), Rs 32.42 Cr / Rs 2.02 Cr (FY23) and Rs 13.23 Cr / Rs 0.95 Cr (upto Q2 FY24). So as per previous financials data, company has shown good growth. Company has posted an average EPS of Rs 2.90 and average RoNW of 12.01% for last three fiscals. Issue is priced at a P/BV of 1.74 as per NAV of 38.01 as on post issue. 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 54.81, 22.33 and 23.68 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Beeline Capital Advisors Private Limited is associated with this SME IPO and handled 24 SME IPOs in last 3 years. From last 10 IPOs, all opened above issue price or at par on the listing day. As of now from last 10 IPOs, one IPO is trading below issue price and remaining are trading above issue price. ( As on 11.12.23 ) As per financials, Benchmark Computer Solutions Limited has shown good growth, RoNW is 15.73% and P/E is respectively 54.81, 22.33 and 23.68 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is in business of end-to-end technology and technology related services including IT Infrastructure and Software Development Services, which is highly competitive and fragmented segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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