Digikore Studios Limited

As per financial performance, Digikore Studios Limited has posted total income / net profits of Rs 6.15 Cr / Rs 0.01 Cr (FY21), Rs 24.88 Cr / Rs 0.46 Cr (FY22), Rs 35.55 Cr / Rs 4.37 Cr (FY23) and Rs 11.83 Cr / Rs 2.80 Cr (Q1 FY24), So company has shown good results, but sudden rise in bottom-line before IPO is very surprising. Company has posted an average EPS of Rs 19.81/- and average RoNW of 47.40% for last three fiscals. Issue is priced at a P/BV of 3.03 as per NAV of Rs 56.49/- as on Post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 232.88, as per FY23 earnings P/E is 24.76 and as per annualised FY24 earnings P/E is around 13. As per RHP, comparison between peers is shown in above table. On BRLM's  front, Sarthi Capital Advisors Private Limited is associated with this SME IPO and handled 5 SME IPOs in last 3 years. From last 5 IPOs, one opened below issue price and remaining opened at par or above issue price on the listing day. As of now from last 5 IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 21.09.23 ) As per financials, Digikore Studios Limited has shown good results, RoNW is 74.03% and P/E is respectively 232.88, 24.76 and 13 as per FY22, FY23 and annualised FY24 earnings. As per FY22 earnings issue looks aggressively priced and as per FY23 & annualised FY24 earnings issue looks reasonably priced. Also sudden rise in net profit, is very surprising. Company is in business of providing a full suite of visual effects services, which is highly fragmented and competitive segment. But there is good growth opportunity in the Performance of BRLM is average. Based on financials and other data we are giving NEUTRAL rating, but as per gray market activity, we are giving SUBSCRIBE rating for listing gains to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Mr. Abhishek Rameshkumar 
• 2  Ms. Shree M P J Cement Works LLP