Canarys Automations Limited

LISTED

SME IPO · IPO Guide

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Issue Price

₹29 – ₹31

Listed On

11 Oct 2023

Listing Price

₹43.45 (+40.16%)

Current Price LIVE

₹43.45 (+40.16%)

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Lot Size Calculator

Application	Lots	Shares	Amount
Retail (Min)	1	4,000	₹1,24,000
Retail (Max)	2	8,000	₹2,48,000
S-HNI (Min)	3	12,000	₹3,72,000
S-HNI (Max)	8	32,000	₹9,92,000
B-HNI (Min)	9	36,000	₹11,16,000

As per financials, Canarys Automations Limited has shown good results, RoNW is 31.54% and P/E is respectively 38.21 and 20.43 as per FY22 and FY23 earnings. So, as per FY22, issue looks aggressively priced and as per FY23, issue looks fully priced. Also sudden rise in net profit and higher value of trade receivables (more than 50% of FY23 earnings) are very surprising. Company is in business of IT automation solutions and water resource management, which is highly fragmented and competitive segment. Performance of BRLM is average. So we are giving SUBSCRIBE rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

As on Date	QIB	NII	RII	Total
Shares Offered / Reserved	28,80,000	27,36,000	50,48,000	1,06,64,000
Day 1 27-09-23	0 (0)	(0.38)	(0.43)	(0.30)
Day 2 28-09-23	0 (0)	15,40,000 (0.56)	47,12,000 (0.93)	62,52,000 (0.59)
Day 3 29-09-23	8,000 (0)	23,68,000 (0.87)	93,56,000 (1.85)	1,17,32,000 (1.1)
Day 4 03-10-23	78,56,000 (2.73)	3,98,64,000 (14.57)	5,90,84,000 (11.7)	10,68,04,000 (10.02)

As per financial performance, Canarys Automations Limited has posted total income/net profits of Rs 25.78 Cr / Rs 2.10 Cr (FY21), Rs 51.99 Cr / Rs 4.55 Cr (FY22) and Rs 75.47 Cr / Rs 8.52 Cr (FY23), So company has shown good growth, but sudden rise in bottom-line before IPO and higher value of trade receivables (more than 50% of FY23 earnings) are very surprising. Company has an order book of around Rs 58/- Cr. Company has posted an average EPS of Rs 2.85/- and average RoNW of 26.44% for last three fiscals. Issue is priced at a P/BV of 2.49 as per NAV of Rs 12.44/- as on 31.03.23. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 38.21 and as per FY23 earnings P/E is 20.43. As per RHP, comparison between peers is shown in above table. On BRLM's front, Indorient Financial Services Limited is associated with this SME IPO and handled 2 SME IPOs in last 2 years. From last 2 IPO, one opened below issue price and remaining opened at par or above issue price on the listing day. As of now from last 2 IPOs, one is trading below issue price and remaining is trading above issue price. ( As on 27.09.23 ) As per financials, Canarys Automations Limited has shown good results, RoNW is 31.54% and P/E is respectively 38.21 and 20.43 as per FY22 and FY23 earnings. So, as per FY22, issue looks aggressively priced and as per FY23, issue looks fully priced. Also sudden rise in net profit and higher value of trade receivables (more than 50% of FY23 earnings) are very surprising. Company is in business of IT automation solutions and water resource management, which is highly fragmented and competitive segment. Performance of BRLM is average. So we are giving SUBSCRIBE rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

Fresh Issue

1
Funding of expenditure relating to solutions development for digital transformation and water resources management solution ( Rs 11/- Cr ) Creation of new delivery centre including infrastructure thereof and upgrading existing facilities ( Rs 8.94/- Cr ) Funding working capital requirements of the Company ( Rs 15/- Cr ) General Corporate Purpose
2
Funding of expenditure relating to solutions development for digital transformation and water resources management solution ( Rs 11/- Cr )
3
Creation of new delivery centre including infrastructure thereof and upgrading existing facilities ( Rs 8.94/- Cr )
4
Funding working capital requirements of the Company ( Rs 15/- Cr )
5
General Corporate Purpose
6
All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decision
7
Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published on this applicatio
8
With entry barriers, SEBI wants only well informed investors to participate is such SME offer
9
With crazy recent listings, SME IPOs have started drawing attention of investors across the boar
10
However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own ris
11
Above information is based on information available as on date coupled with market perception

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Disclaimer

No financial information whatsoever published herein, should be construed as an offer to buy or sell securities, or as information to make investment decisions, or as an official confirmation of any transaction. All matter published herein is purely for educational and informational purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

💬 Community Discussion

11 Comments

D
dhiren 06 Oct 2023, 15:53

when is the allotment
K
kuch toh gadbad hai daya 30 Sep 2023, 13:27

lekin ads jarurat dikhayega
K
kuch toh gadbad hai daya 30 Sep 2023, 13:27

kabhi koi ipo dikhata hai kabhi nahi
K
kuch toh gadbad hai daya 30 Sep 2023, 13:27

iss app ko update karne wala chutti par chala gaya hai......sab data ulta pulta chal raha hai
K
kuch toh gadbad hai daya 30 Sep 2023, 13:26

koi salt wala ipo tha na..woh dikha hi nahi raha
J
JATIN NAVNIT BHAI MONANI 30 Sep 2023, 07:57

FOR THIS IPO , NOW RECOMMEND IS SUBSCRIBE
N
neerav 29 Sep 2023, 14:50

confusion wali advice
S
Satish Solanki 29 Sep 2023, 11:37

subscribe avoid matlab
R
Rakesh 28 Sep 2023, 21:26

Last 2/3 days sme listing not good as per GMP
R
Rakesh 28 Sep 2023, 21:25

SME IS NOW RISKY
J
jigar bhatt 28 Sep 2023, 18:29

can we apply this ipo full force?

Period	Total Income	Total Expenses	Profit After Tax (PAT)
FY23	75.47	63.66	8.52
FY22	51.99	45.76	4.55
FY21	25.78	22.79	2.10

Open Date	Sep 27, 2023
Close Date	Oct 03, 2023
Allotment Date	Oct 09, 2023
Listing Date	Oct 11, 2023
Face Value	₹ 2 Per Equity Share
Issue Price	₹ 29 to ₹ 31 Per Equity Share
Issue Size	Fresh Issue of Up to 1,51,72,000 with aggregating up to Rs 47.03/- Cr
Retail Min Lot	1 Lot (4,000 Shares - ₹ 1,24,000)
Lead Manager	Indorient Financial Services Limited

Company	P/B Ratio	P/E Ratio	RoNW	Total Revenue (Cr)
Canarys Automations Limited Current	2.49	20.43	31.54%	75
All E Technologies Limited	3.17	23.0	16.0%	88
Happiest minds Limited	16.3	63.1	28.9%	1,333

Canarys Automations Limited

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