EKennis Software Limited is engaged in the business of Software IT Solution and Consulting Services, IT Product / Software Development and Software Training, Enterprise Resource Planning Solution, Learning Management Solution, 3D Printing, Digital Printing and Packaging Design Management consultancy. They have leveraged our domain expertise, processes and infrastructure to diversify our offering of services to cater to a variety of business sectors. It is also provide business process analysis and system design, technical expertise, implementation, training and support services. They have expertise in SAP ERP. The Company's major focus areas for implementation are discrete Manufacturing, Automotive, Food Processing, Chemicals, Telecom sectors. They have a team of SAP Professionals who have the credentials and capabilities to support service and consult our customers. Company's consultants are trained and qualified on SAP, Microsoft and Oracle. Company's growth is further driven by their ability to make available an assortment of quality services in the following areas:. IT Solution: The Company is an Enterprise Resource Planning solution providing organization and a Solution Implementation Company in SAP, Microsoft and Oracle. We provide services to our customers services that include tailored solutions by comprehending clients’ requirements and technology enabled services that meet business objectives. 3D and Digital Printing: The Company provides 3D printing and packaging services, a range of innovative packaging products for the retail, food, fashion, entertainment, sports, baby care, personal & hygiene, industrial & agriculture industries.. As per financial performance, Ekennis has posted total income/net profits of Rs 4.85 Cr / Rs 0.23 Cr (FY20), Rs 4.68 Cr / Rs 0.95 Cr (FY21) and Rs 3.67 Cr / Rs 0.70 Cr (upto 15.01.22 FY22). So company has shown average results over last couple of years. Company has posted an average EPS of Rs 7.08 and average RoNW of 78.94% for last three fiscals. Issue is priced at a P/B of 2.51 as per NAV of Rs 28.66 post issue. As Per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 10.62 and as per annualised FY22 earnings P/E is 11.41. As per RHP, Comparison between listed peers are shown in above table. Also issue expenses looks very high. On BRLM's front, Shreni Shares Private Limited associated with this SME IPO and handled 9 IPOs in last 3 years. From last 9 IPOs, one opened below issue price and remaining above issue price or at par. As of now from last 9 IPOs, three are trading below and remaining are trading above issue price or at par. ( As on 16.02.22 ) As per financials, Ekennis has shown average results, RoNW is 77.48% and P/E is respectively 10.62 and 11.41 as per FY21 and annualised FY22 earnings, which looks fully priced. But we have very limited financial data is available and IT sector is very highly competitive. Also if company can manage same margins in future, looks difficult. Performance of BRLM is average. So we are giving AVOID rating to this IPO.
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