Cellecor Gadgets Limited

As per financial performance, Cellecor Gadgets Limited has posted total income/net profits of Rs 0.00 Cr / Rs (0.02) Cr (FY21), Rs 121.28 Cr / Rs 2.13 Cr (FY22) and Rs 264.36 Cr / Rs 7.97 Cr (FY23), So company has shown good growth, but sudden rise in bottom-line before IPO is very surprising. Company has posted an average EPS of Rs 4.05/- and average RoNW of 55.71% for last three fiscals. Issue is priced at a P/BV of 3.04 as per NAV of Rs 30.28/- as on post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 90.35 and as per FY23 earnings P/E is 24.20. As per RHP, there is no peers. On BRLM's front, Narnolia Financial Services Limited is associated with this SME IPO and handled 2 SME IPOs in last 1 years. From last 2 IPO, all are opened above issue price on the listing day. As of now from last 2 IPO, all are trading above issue price. ( As on 12.09.23 ) As per financials, Cellecor Gadgets Limited has shown good results, RoNW is 57.71% and P/E is respectively 90.35 and 24.20 as per FY22 and FY23 earnings. As per FY22 earnings issue looks aggressively priced and as per FY23 earnings issue looks fully priced. Also sudden rise in net profit just before IPO is very surprising. Company is in business of the procurement, branding, and distribution of televisions, mobile phones, Smart Wearables, mobile accessories, smart watches, and neckbands, which is highly fragmented and competitive segment. But there is good growth opportunity. Performance of BRLM is good. So we are giving NEUTRAL rating to this SME IPO as per company fundamentals and as per gray market fancy one may apply for listing gains. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Mr. Ravi Agarwal
• 2 Mr. Nikhil Aggarwal