Dhyaani Tile And Marblez Limited

Dhyaani Tile is engaged in the business of trading of vitrified tiles used primarily for flooring solutions. They commenced this business in year 2019, upon takeover of the business from the earlier promoters. Earlier to this the company was engaged in the business of trading of agro commodities. Dhyaani Tile And Marblez Limited is involved in the business of trading and producing tiles for floors, bathrooms, kitchens, balconies, and stairwells. The company offers two categories of products: Double Charge Vitrified Tiles and Glazed Vitrified Tiles. The company's warehouse and the physical store are located in Ahmedabad. Dhyaani Tile And Marblez produces rustic, polished glazed, polished, and textured tiles. The company identifies its customer's needs and allows them to choose the perfect design from its wide range of tiles samples. The company has well-known brand suppliers located all over India.  As per financial performance, Dhyaani Tile And Marblez Limited has posted total income/net profits of Rs 9.35 Cr / Rs 0.09 Cr (FY19), Rs 7.12 Cr / Rs (0.07) Cr (FY20), Rs 15.11 Cr / Rs 0.26 Cr (FY21) and Rs 10.41 Cr / Rs 0.24 Cr (H1FY22). So company has shown zig-zag results. Company has posted an average EPS of Rs 0.95 and average RoNW of 15.74% for last three fiscals. Issue is priced at a P/B of 1.93 as per NAV of Rs 26.46 post issue. As per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 28.82 and as per annualised FY22 earnings P/E is 15.95. As per RHP, Comparison between listed peers are shown in above table.     On BRLM's front, GYR Capital Advisors private Limited associated with this SME IPO and handled 2 IPOs in last 3 years. From last 2 IPOs. As of now from last 2 IPOs, two are trading below and remaining are trading above issue price or at par. ( As on 25.03.22 ) As per financials DTHL, has shown zig-zag results, RoNW is 78.99% and P/E is respectively 29 and 16 as per FY21 and annualised FY22 earnings, which looks fully priced, but sudden rise in IPO years raises concerns. Performance of BRLM is poor post listing. So we are giving AVOID rating to this IPO.

• 1 Mr. Chintan Nayan Bhai Rajyaguru