Brandbucket Media & Technology Limited

Brandbucket Media & Technology Limited offers online and offline advertising media solution services to customers. Its offerings include digital marketing, ground events, event management, marketing technology services, outdoor media, and print media. Its outdoor media operations are spread across Thane & Mumbai. The business is further engaged in event management activities including planning, organizing, and managing all event activities. The Primary Advertising offering includes:(a) Digital Marketing(b) Ground events/activations(c) Events Management(d) Marketing Technology Services (e) Outdoor Media (OOH) and(f) Print Media Company's outdoor media operations are spread across Mumbai & Thane. They help the clients run a focused campaign in consumer populated areas. They manage commercial events, corporate events, cultural events and also small brand promotion events for the clients. They create comprehensive social media marketing strategies that engage audiences and get the brand noticed by all the right people, for the right reasons. Its content developers curate messages that will resonate with the audience for the maximum reach, recall and impact, across appropriate platforms. As per financial performance, BMTL has posted total income/net profits of Rs 6.77 Cr / Rs 0.14 Cr (FY19), Rs 22.88 Cr / Rs 0.35 Cr (FY20), Rs 15.19 Cr / Rs 0.29 Cr (FY21) and Rs 6.13 Cr / Rs 0.22 Cr (5M FY22). So company has shown zig-zag results. Company has posted an average EPS of Rs 3.35 and average RoNW of 36.68% for last three fiscals. Issue is priced at a P/B of 1.59 as per NAV of Rs 34.6 post issue. As Per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 60 and as per annualised FY22 earnings P/E is 33. As per RHP, Comparison between listed peers are shown in above table. On BRLM's front, Inventure Merchant Banker Services Private Limited is associated with this IPO, and have handled around 5 IPO in last three fiscals. From last 5 IPOs, 3 are opened below issue price and remaining are opened above issue on the day of listing. As of now, 3 are trading above issue price. ( As on 15.12.21) As per financials, BMTL has shown zig-zag financials, RoNW is 28.70% and P/E is respectively 60 and 33 as per FY21 and annualised FY22 earnings, which looks aggressively priced with respect to the size of company. Performance of BRLM is bad. So, we are giving AVOID rating to this IPO.

• 1 Nishigandha S. Keluskar
• 2 Createroi Financial Consultancy Private Limited