DelaPlex Limited

DelaPlex Limited is a technology and software development solution and consulting provider, helping client companies to achieve in deriving growth, revenue and marketplace value. The Company has developed expertise and partnerships with various industry players that provide the latest technology, tools, and software development solutions. The Company is a global technology partner in Supply Chain Consulting, Custom Software Development, Cloud Services, and Data Science. Further the Company, offers various tech solutions encompassing software-defined data centers, integrated infrastructure, cloud technologies, DevOps, security solutions, data analytics, and artificial intelligence. Built for the channel partners and end users i, they create next-gen solutions to address IT problems. They offer the services across industries and a diversified customer base majorly in the United States of America which include clients from Broadcasting, Petroleum, Retail, 3PL, WFM, QSRs, Hospitality, IT & ITES, Telecom etc. They believe the diversified customer base allows to insulate ourselves from sector fluctuations and industry concentration risks. The Company caters mainly to international markets. The customer base is spread across the globe with presence in countries majorly United States of America. They also have a presence in international markets by way of the foreign holding Company and foreign Group Company such as delaPlex INC and Xperity LLC. They have entered into various Business Support Agreements wherein they have agreed to provide business support and strategy services. The Company has signed various Business Partnership Agreements offering solutions such as digital innovation platform that helps corporations Fastrack their technology adoption and innovation projects. As per financial performance, DelaPlex Limited has posted total income / net profits of Rs 36.33 Cr / Rs 4.04 Cr (FY21), Rs 50.34 Cr / Rs 6.12 Cr (FY22), Rs 55.22 Cr / Rs 7.91 Cr (FY23) and Rs 28.14 Cr / Rs 4.26 Cr (upto Q2 FY24). So as per previous financials data, company has shown above average growth. Also trade receivables are above 35% of FY23 revenue. Company has posted an average EPS of Rs 9.12 and average RoNW of 37.01% for last three fiscals. Issue is priced at a P/BV of 5.06 as per NAV of 37.97 as on 30.09.23. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 28.59, 22.12 and 20.55 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Shreni Shares Limited is associated with this SME IPO and handled 26 SME IPOs in last 3 year. From last 10 IPOs, all are opened opened above issue price or at par on the day of listing. As of now from last 10 IPOs, all are trading  above issue price. ( As on 18.01.24 ) As per financials, DelaPlex Limited has shown above average results, RoNW is 33.65% and P/E is respectively 28.59, 22.12 and 20.55 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Also higher trade receivables (35% of FY23 revenue) is a concern. Company is in business of technology and software development solution and consulting provider, which is highly competitive and fragmented segment. Performance of BRLM 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 Mr. Nitin Sachdeva
• 2 Ms. Preeti Sachdeva
• 3 Mr. Manish Iqbalchand Sachdeva
• 4 Mr. Mark T River
• 5 delaPlex INC