CLN Energy Limited

As per financial performance, Sat Kartar Shopping Limited has posted total income / net profits of Rs 52.31 Cr / Rs 1.39 Cr (FY22), Rs 82.98 Cr / Rs 2.51 Cr (FY23), Rs 128.11 Cr / Rs 6.31 Cr (FY24) and Rs 109.55 Cr / Rs 5.89 Cr (15.12.24 FY25). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 12.78 and average RoNW of 89% for last three fiscals. Issue is priced at a P/BV of 2.5 as per NAV of Rs 32.44/- as on post issue. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 50.89, 20.23 and 15.35 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Narnolia Financial Services Limited is associated with this SME IPO and this is 16th IPO from the lead manager. From last 10 IPOs, three opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 IPOs, one is trading below issue price and remaining are trading above issue price or at par as on today. ( As on 08.01.25 ) As per financials, Sat Kartar Shopping Limited has shown good growth, RoNW is 66.8% and P/E is respectively 50.89, 20.23 and 15.35 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced, but sudden rise in net-profit just before IPO raises concerns. Company is an Ayurveda healthcare company, providing natural wellness solutions relating to specific therapeutic areas and general lifestyle products, which is highly competitive and fragmented business segment. Performance of BRLM post listing is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 CLN Energy Pte. Ltd.
• 2 Rajiv Seth