CWD stands for Connected Wireless Devices. Company, CWD Limited, is an Information and Communication Technology (ICT) based company that designs, develops, manufactures, and sells integrated solutions combining the power of software and electronics. All products that are designed and developed in the company are focused on wireless technologies either on short range radio technology like NFC, Bluetooth BLE, WiFi, Zigbee; mid range systems like LORA or long- range communication systems like 5G LTE, NB-IOT, LTE CAT M1 etc. CWD operates mainly through the segments of Consumer Electronics and Design and Development of Technology Solutions for various Enterprises and Businesses. The diversified product portfolio includes Smart Medical Consumer Electronics, Products for Vaccine Tracking and Delivery, Tracking devices for Farm Cattle that monitor both movement and health, Electronics for converting Electric Power meter into a Smart Power meter, Employee Safety and Identity Solutions, Electronics that once embedded provide Smart Lighting capabilities to enterprises and consumers reducing their costs, Bluetooth Low Energy Modules that can be used across various white goods and projects etc. CWD Limited is a fully integrated end-to-end integrated solution provider and original equipment manufacturers (OEMs) with capabilities ranging from global sourcing, manufacturing, quality testing, packaging, and logistics. They develop and design products in-house at the R&D unit. They manufacture and supply these products to customers globally who in turn distribute these products under their own brands. Cwd utysgudc. ta7tdcg hui hauyjb hauyei ,aurya yayfhvgdgyudfvio a;h;a;u ;ahu aprivabte limirtf a cw d financial cfonfdition IUY8u Manufactyuring guywstdey7 ugdws7 As per Rhp thgere is no listed peers there there is To carry out businesses in different location within India and abroad, they have 3 subsidiaries namely CWD Manufacturing Pvt. Ltd. (CMPL) having its registered office in Mumbai, India, CWD Innovations HK Limited (CIHKL) having its registered office in Hong Kong and SDG Global Private Limited (SGPL) having its registered office in Mumbai, India. On the financial performance front, CWD reported turnover/net profits (loss) of Rs. 3.02 Cr. / 0.51 Cr. (FY20), Rs. 3.41 cr. / 1.41 Cr. (FY21). So company has shown growth, but sudden rise in bottom-line in FY21 is due to deferred tax credit. Also company has high debt. For the last two years, company has posted average EPS of Rs. 13.33 and RoNW of 51.26%. The issue is priced at a P/BV of 3.84 based on its NAVs of Rs. 46.85 post issue. As per FY21 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 46, which looks aggressively priced. As per RHP,there is no listed peers. On BRLM's front, Aryaman financial Services Limited associated with this SME IPO and handled 14 IPOs in last 3 years. From last 10 IPOs, five opened below issue price and remaining above issue price. As of now from 10 IPOs, five are trading below and remaining are trading above issue price or at par. ( As on 29.09.21 ) For CWD are financials are good, RoNW is 46.90%, P/E is around 46 for FY21, so issue looks aggressively priced. The sector ICT is very promising sector of future and expected to show good growth in upcoming years. Performance of BRLM is poor. So we give AVOID rating to this SME IPO.
✍️ Post a Comment