Brisk Technovision Limited is engaged in the business of providing information technology solutions to corporate customers. The primary business of the Company is (a) to provide various third party hardware products such as servers, desktops, personal computers and laptops as well as (b) third party software to Indian corporate customers. They also offer other service offerings, which includes services relating to design, supply and installation of data centres, enterprise networking management, email management, system integration and annual maintenance contract (AMC) for hardware and system maintenance, monitoring and managed services. In the last three financial years, They have begun to focus on offering more of the service offerings. Presently, predominately the business (both Sales of Goods and Sales of Services) is in state of Maharashtra. The company has business relations with several Original Equipment Manufacturers (OEMs) through which they are able to provide end-to-end services in setting up and managing IT infrastructure for organizations of all sizes across all industries. The Company procures servers, laptops, desktops and other allied products from the OEMs as per the requirements of the client. The capabilities include sourcing appropriate IT products, integrating the systems to work together as a unified solution, integrating the network that connects this infrastructure across different locations and managing the system to ensure high availability of IT storage, network and computing infrastructure. The Company is a cash rich company (having fixed deposits of Rs. 415.34 lakhs, as confirmed by the Statutory Auditors Gosar & Gosar, Chartered Accountants, vide their Certificate dated December 21, 2023 and other cash and bank balance of Rs. 56.85 lakhs (against net worth of Rs. 631.02 lakhs as on September 30, 2023,). The Company does not have any debt. The Company has an asset light business model and has been making Profit After Tax in each year for more than a decade. As per financial performance, Brisk Technovision Limited has posted total income / net profits of Rs 16.91 Cr / Rs 0.29 Cr (FY21), Rs 22.08 Cr / Rs 1.45 Cr (FY22), Rs 18.40 Cr / Rs 2.61 Cr (FY23) and Rs 15.77 Cr / Rs 1.52 Cr (upto Q2 FY24). So as per previous financials data, company has shown growth, but sudden rise in net profit just before IPO raises doubts. Company has posted an average EPS of Rs 6.92 and average RoNW of 33.87% for last three fiscals. Issue is priced at a P/BV of 4.94 as per NAV of 31.55 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 28.49, 15.69 and 10.23 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Sun Capital Advisory Services Private Limited is associated with this SME IPO and handled 1 SME IPOs in last 2 year. From last 1 IPO, that opened above issue price on the day of listing. As of now from last 1 IPO, that is trading above issue price. ( As on 17.01.24 ) As per financials, Brisk Technovision Limited has shown average results, RoNW is 41.56% and P/E is respectively 28.49, 15.69 and 10.23 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fairly priced. But sudden rise in net profit just before IPO raises doubts and it may be difficult to maintain same margin in future. Also issue expenses are higher. Company is in business of providing information technology solutions to corporate customers, which is highly competitive and fragmented segment. 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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