Dachepalli Publishers Limited is an established content-based educational publishing house dedicated to serving the K–12 segment across CBSE, ICSE, and State Board curriculums. They provide high-quality textbooks along with partnering with various schools ranging from the capacity of 100 to 50,000 students as a comprehensive academic support system. Started in 1998, Dachepalli Publishers Limited traces its roots back to a modest bookstall established by their forefather in the early 1900s. Initially focused on retailing textbooks and magazines, the business gradually evolved to meet the growing educational needs of the region, expanding into publishing Urdu textbooks, diaries, and eventually comprehensive academic content. As of 2025, the portfolio features over 600 titles distributed under six prominent brands: Dachepalli publishers Limited, Apple Book Company, Orange Leaf Publishers, Pelican Publishing House, Sangam Publishing House, and School Book Company. Along side printed materials, they provide schools with curriculum-aligned digital resources at no additional cost. Upon purchasing the text books, schools gain access to a range of educational tools - including instructional videos, a test generator, and other academic software - installed directly within their premises. Company operates across 10 states and Union Territories in India. The integrated supply chain, in-house print facilities, and centralized warehouse in Hyderabad, Telangana, support the operations. The distribution network includes over 300 distributors and dealers, bolstered by a dedicated in-house sales team of over 60 trained professionals. As per financial performance, Dachepalli Publishers Limited has posted total income / net profits of Rs 45.25 / 0.47 Cr (FY23), Rs 50.89 / Rs 3.31 Cr (FY24), Rs 64.25 Cr / 7.56 Cr (FY25) and Rs 40.36 Cr / 7.61 Cr (upto Q2 FY26). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Also higher trade receivables around 96% of FY25 total sales, higher inventory level and high borrowings are red flags. Company has an average EPS of Rs 4.51 and average RoNW of 19.92% for last three fiscals. Issue is priced at a P/BV of 3.22 as per NAV of Rs 31.72/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 46.02, 20.20 and 10.03 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Synfinx Capital Private Limited is associated with this SME IPOs, and this is first SME IPO by the BRLM. ( As on 16.12.25 ) As per financials, Dachepalli Publishers Limited has shown good growth, RoNW is 27.68% and P/E is 46.02, 20.20 and 10.03 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced, but higher trade receivables, higher inventory level and high borrowings raise doubts. Company is a content-based educational publishing house dedicated to serving the K–12 segment across CBSE, ICSE, and State Board curriculums, which is highly competitive business segment. BRLM is very new. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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