Eastern Logica Infoway Limited

Eastern Logica Infoway Limited is engaged in multi-brand retail and retail selling as well as distribution of branded smart phones, IT hardware, software and allied accessories and services. The Company also provides networking and security solution to  consumers. They commenced their business operations in year 1995 and believe that they have built a fair market presence with over 25 years of experience. Since the commencement of business, they have been steadily increasing company market reach to cover 11 cities across the country by setting up retail stores, distribution centres, venturing into ecommerce and setting virtual offices. There has been a continuous rise in their revenue from operations and moreover they have demonstrated profitability with operating performance. The Company  primarily operate their business activities1. Retail2. Distribution3.E-Commerce  As at November 30, 2022, they have a total of 101 Employees. As per financial performance, Eastern Logica Infoway Limited has posted total income/net profits of Rs 498.83 Cr / Rs 1.82 Cr (FY20), Rs 447.03 Cr / Rs 2.34 Cr (FY21), Rs 615.58 Cr / Rs 2.85 Cr (FY22) and Rs 305.04 Cr / Rs 1.33 Cr (upto H1 FY23). So company has shown average result. Company has posted an average EPS of Rs 11.80 and average RoNW of 7.67% for last three fiscals. Issue is priced at a P/B of 1.29 as per NAV of Rs 174.16 post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 22.48 and as per annualised FY23 earnings P/E is 24.09. As per RHP, there is no listed peer. On BRLM's front, Oneview Corporate Advisors Private Limited associated with this SME IPO and does not handled any SME IPOs in last three years. As per financials Eastern Logica Infoway Limited, has shown average results, RoNW is 8.22% and P/E is respectively 22.48 and 24.09 as per FY22 and annualised FY23 earnings, which looks fully priced. Company has shown very thin margin and it operates in multi-brand retail marketing and distribution, which is highly competitive and fragmented. BRLM has not handled any IPOs before. So we are giving AVOID rating to this IPO.

• 1 Gaurav Goel
• 2 Shweta Goel