Started in 2009, DJ Mediaprint & Logistics Limited is an Integrated Printing, Logistics and Courier solutions provider in India and some other countries. The company offers bulk scanning, newspaper print advertising services, manpower supply, records management, speed post, bulk mailing, and other services. Some of the important clients of DJ Mediaprint are GIC Housing Finance, National Insurance, Citi Bank, Punjab National Bank, Philips, Aditya Birla Group, Union Bank of India, and NSDL. It has been awarded ISO 9001:2015 certification for a natural effect in highly organised activities. The company is also registered with the National Small Industries Corporation Limited and participates in the Central Government Store Purchase Programme. The company has offices at several locations such as Bhiwandi (Thane), Navi Mumbai, Mumbai, Goa, and Delhi. The services of the company can be divided into 14 categories which include printing solutions, variable data printing, continuous stationery printing, security printing, logistics, bulk mailing, speed post, international courier services, moving services, storage and record management services, bulk scanning, bulk SMS and e-mail, newspaper print advertising service and manpower supply. On the financial performance front, for the last three fiscals, DJML has posted turnover/net profits of Rs. 10.11 cr. / Rs. 0.29 cr. (FY17), Rs. 17.34 cr. / Rs. 0.65 cr. (FY18) and Rs. 20.67 cr. / Rs. 0.92 cr. (FY19). For the first nine months of FY20, it has earned net profit of Rs. 0.75 a cr. on a turnover of Rs. 13.12 cr. Trade receivables for FY19 was 4.65 Cr and total revenue was 20.67 Cr which is around 22.5% of total revenue. For the last three fiscals, DJML has posted an average EPS of Rs. 2.41 and an average RoNW of 29.54%. The issue is priced at a P/BV of 1.62 based on its NAV of Rs.12.36 as on 31.12.19 and at a P/BV of 1.38 based on post issue NAV of Rs. 14.53. If we annualise latest earnings and attribute it on fully diluted post issue equity then asking price is at a P/E of around 8.5 and as per FY19 earnings P/E is 9.1, thus IPO appears reasonably priced. As per RHP, there is no listed peers available in market. On BRLM's front, for Finshore Management Services Limited this is the 16th IPO and from last 10 IPOs, 3 opened below issue price and remaining opened around or above issue price with 0% to 25% premium on the day of listing. As of now, from last 10 IPOs, 8 are trading below issue price and remaining above or at par issue price. ( As on 20.03.20 ) Company has shown good results and issue is priced at P/E of around 9 as per FY19 earnings, which reasonably priced in current scenario. The company is working in multiple segments. Performance of BRLM is poor after listing. So we give NEUTRAL rating to this SME IPO.
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