Delta Autocorp Limited

As per financial performance, Delta Autocorp Limited has posted total income / net profits of Rs 57.53 Cr / Rs 4.20 Cr (FY22), Rs 80.56 Cr / Rs 5.13 Cr (FY23), Rs 81.16 Cr / Rs 8.22 Cr (FY24) and Rs 45.28 Cr / Rs 4.81 Cr (7M FY25). So as per previous financials data, company has shown good growth. Company has posted an average EPS of Rs 8.69 and average RoNW of 50.33% for last three fiscals. Issue is priced at a P/BV of 6.53 as per NAV of Rs 19.91/- as on 31.10.24. 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 38.71, 24.18 and 24.11 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, GYR Capital Advisors Private Limited is associated with this SME IPO and this is 36th IPO from the lead manager in last 4 years. From last 10 IPOs, all 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 or at par as on today. ( As on 03.01.25 ) As per financials, Delta Autocorp Limited has shown good results, RoNW is 38.88% and P/E is respectively 38.71, 24.18 and 24.11 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced. Company is manufacturer and seller of 2W & 3W EVs using cutting edge components procured from reputed Original Equipment Manufacturers (OEMs), which is highly competitive 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 Ankit Agarwal
• 2 Priyanka Agarwal
• 3 Sanwarmall Agarwalla