Diensten Tech Limited

Diensten Tech Limited is into the business of Information Technology ('IT') professional resourcing, IT Consultancy, IT Training and Software AMC. They connect the clients to individuals with a specific IT skill set, manage capacity across a team, or deliver in-house technology experts to take client project to full delivery.  Company is a next-generation IT consultancy service provider that helps enterprises reimagine their businesses for the digital age. They provide end-to-end professional solutions to make large companies and organizations more competitive by combining in-depth knowledge of a wide range of business sectors and innovative technologies with a fully collaborative approach. They are a lifelong learning partner for enterprises, helping them build skills in emerging technologies at scale. The Corporate Training division helps build innovative learning modules for organizations in the workplace by structuring a smarter workforce, supporting changes and driving growth.  Company has been providing technical consultancy, training, software services and other services to large corporates of the country, multinational companies, small and medium enterprises of diversified sectors. Post acquisition of PS & T business, they are focusing on this segment specifically. Some of the prestigious clients are Illumina Technology Solutions LLC, Mobiquest Mobile Technologies Pvt. Ltd, ONE97 Communications Limited, Thomas Cook (India) Ltd, Capgemini Technology Services India Ltd, Tata Consultancy Services Limited, Maruti Suzuki India Ltd, Schenker India Pvt Ltd, Motherson Technology Services Limited and Pepsico Global Business Services India LLP. As per financial performance, Diensten Tech Limited has posted total income / net profits of Rs 5.25 Cr / Rs 1.17 Cr (FY21), Rs 0.76 Cr / Rs 0.01 Cr (FY22), Rs 37.60 Cr / Rs 0.16 Cr (FY23) and Rs 26.20 Cr / Rs (1.71) Cr (Upto Q3 FY24). So as per previous financials data, company has shown inconsistent results. Company has posted an average EPS of Rs 2.47 and average RoNW of (15.23)% for last three fiscals. Issue is priced at a P/BV of 4.19 as per NAV of 23.87 as on 31.12.23. 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 5697, 514 and (36.08) respectively, which looks aggressively priced. As per RHP, There are no listed peers. On BRLM's front, Corporate Professionals Capital Private Limited is associated with this IPO and this is first SME IPO from the BRLM. As per financials, Diensten Tech Limited has shown inconsistent results, RoNW is 3.78% and P/E is respectively 5697, 514 and (36.08) as per FY22, FY23 and annualized FY24 earnings. So, issue looks aggressively priced. Company is engaged into the business of Information Technology ('IT') professional resourcing, IT Consultancy, IT Training and Software AMC, which is highly competitive and fragmented business segment. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 J.K. Traders Limited
• 2 Mr. Vipul Prakash
• 3 Mr. Abhishek Singhania
• 4 Ms. Tina Prakash