Davin Sons Retail Limited

As per financial performance, Davin Sons Retail Limited has posted total income / net profits of Rs 0.89 Cr / Rs 0.07 Cr (FY22), Rs 3.91 Cr / Rs 0.57 Cr (FY23), Rs 13.39 Cr / Rs 1.64 Cr (FY24) and Rs 6.34 Cr / Rs 0.74 Cr (H1 FY25). So as per previous financials data, company has shown good growth, but trade receivables are around 30.75% of FY24 total sales. Company has posted an average EPS of Rs 3.69 and average RoNW of 36.98% for last three fiscals. Issue is priced at a P/BV of 1.92 as per NAV of Rs 28.61/- 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 51.12, 17.64 and 19.67 respectively, which looks fully priced. As per RHP, there is no listed peers as per RHP. On BRLM's front, Navigant Corporate Advisors Limited is associated with this SME IPO and this is 8th IPO from the lead manager in last 4 years. From last 7 IPOs, one opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 7 IPOs, one is trading below issue price and remaining are trading above issue price or at par as on today. ( As on 03.01.25 ) As per financials, Davin Sons Retail Limited has shown good growth, RoNW is 29.58% and P/E is respectively 51.12, 17.64 and 19.67 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced, but trade receivables are very high. Company is engaged in manufacturing of readymade Garments through job work basis & distribution of FMCG products, which is highly competitive and fragmented business segment. Performance of BRLM post listing is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Mohit Arora
• 2 Mr. Nohit Arora
• 3 Mr. Davinder Arora
• 4 Mrs. Lalita Rani
• 5 Mrs. Sonam Arora