Chavda Infra Limited

As per financial performance, Chavda Infra Limited has posted total income/net profits of Rs 91.31 Cr / Rs 4.43 Cr (FY21), Rs 109.87 Cr / Rs 5.21 Cr (FY22) and Rs 162.03 Cr / Rs 12.04 Cr (FY23), So company has shown good results, but sudden rise in bottom-line before IPO is very surprising. Company has posted an average EPS of Rs 4.72/- and average RoNW of 34.91% for last three fiscals. Issue is priced at a P/BV of 3.85 as per NAV of Rs 16.89/- as on 31.03.23. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 30.73 and as per FY23 earnings P/E is 13.30. As per RHP, comparison between peers is shown in above table. On BRLM's front, Beeline Capital Advisors Private Limited is associated with this SME IPO and handled 16 SME IPOs in last 3 years. From last 10 IPO, all are opened above issue price on the listing day. As of now from last 10 IPO, one is trading below issue price. ( As on 11.09.23 ) As per financials, Chavda Infra Limited has shown good results, RoNW is 39.62% and P/E is respectively 30.73 and 13.30 as per FY22 and FY23 earnings. As per FY22 earnings issue looks aggressively priced and as per FY23 earnings issue looks fairly priced. Also sudden rise in net profit just before IPO is very surprising. Company is in business of providing construction and allied services across residential, commercial, and institutional projects in Gujarat, which is highly fragmented and competitive segment. Performance of BRLM is very good. So we are giving SUBSCRIBE rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Mr. Mahesh Gunvantlal Chavda
• 2 Mr. Johil Maheshbhai Chavda
• 3 Mrs. Dharmishtha Maheshkumar Chavda