Established in 2017, Blue Pebble Limited provides spatial design and bespoke environmental branding solutions. They provide a comprehensive range of services encompassing conceptualization, design, printing, furnishing, and installation of Vinyl graphics, signage, and different furnishing products, including but not limited to 3D walls, frost/clear glass films, artifacts, wall panels, wall murals, sculptures for corporate interiors and exterior workplace environments. The solutions are customtailored to meet the unique requirements of each client. The clientele spans across diverse industry sectors, including banks, multinational corporations (MNCs), IT etc. Over the years, the company has successfully executed design, printing, furnishing, installation, and related projects at various locations throughout India, serving notable clients such as Infosys Limited, HDFC Bank Limited, American Express, Bank of America, Nestle, British Petroleum, Moody's etc. They prioritize building long-term client relationships by delivering quality products and services. They offer comprehensive solutions, catering to the clients' design, printing, and fabrication needs. They manage the entire process, from conceptualization to the final product delivery. The capabilities are supported by a dedicated design studio and printing facility located at 112, Nirman Industrial Estate, Link Road, Chincholi Bunder, Malad West, Mumbai, 400064. They provide a wide range of printing and designing services, including theme-based designs, large format printing, vinyl printing, fabric printing, canvas printing, signage manufacturing, and 3D art installation. They also deal in sourcing and installation of curios, sculpture and artisanal hand paintings. The expertise extends to designing and printing signage components aimed at enhancing workspace functionality, efficiency, and aesthetics. This includes wayfinding signage, digital signage, outdoor signage, indoor signage, safety signage, and more. Through the graphics and signage solutions, they transform workspaces into inviting and functional environments that align with the clients' corporate culture and values. Over the year, they have steadily expanded the execution capabilities and successfully completed more than 20 projects during the period of last 3 years. The current order book value stands at Rs. 1781.22 Lakhs, covering designing, printing, and installation of graphics, 3D elements, vinyl, wall panels, glass films, sculptures, wall murals, and interior and exterior products. The focus on quality design, printing, and installation enable them to deliver aesthetically pleasing work environments. They also engage artisans and artists for custom artwork, utilizing various materials to enhance the overall ambiance of workspaces. They operate from the office situated at Mumbai and they have expanded the presence and network to different parts of the country, taking on projects in various regions, including Delhi, Maharashtra, Gujarat, Utter Pradesh, Telangana, Odisha, Madhya Pradesh, Punjab, Tamilnadu etc. The pricing strategy is carefully tailored to each project's unique requirements, taking into account factors such as, estimated project duration, and the specific raw materials, equipment, and skilled manpower needed for successful project execution. As per financial performance, Blue Pebble Limited has posted total income / net profits of Rs 4.21 Cr / Rs 0.20 Cr (FY21), Rs 5.48 Cr / Rs 0.38 Cr (FY22), Rs 15.95 Cr / Rs 2.00 Cr (FY23) and Rs 13.23 Cr / Rs 2.92 Cr (upto Q2 FY24). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 3.88 and average RoNW of 47.38% for last three fiscals. Issue is priced at a P/BV of 8.31 as per NAV of 20.21 as on 30.09.2023. 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 179.91, 34.22 and 11.75 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Hem Securities Limited is associated with this SME IPO and handled 41 SME IPOs in last 3 year. From last 10 SME IPOs, one opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 SME IPOs, three are trading below issue price and remaining trading above or at par issue price. ( As on 20.03.24 ) As per financials, Blue Pebble Limited has shown good results, RoNW is 63.72% and P/E is respectively 179.91, 34.22 and 11.75 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fairly priced, but sudden rise in net-profit just before IPO is very surprising. Company is in business of comprehensive solutions, catering to the clients' design, printing, and fabrication needs, 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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