Encompass Design India Limited

Encompass Design India Limited (EDIL), operating under the brand name 'ScaleSauce', is engaged in building and scaling consumer brands in India, with a focus on the home & living and food segments tailored to the modern urban Indian consumer. The Company was incorporated in 2010 as a trading enterprise and commenced the trading of fabrics. In response to emerging market opportunities, they subsequently expanded the operations to include e-commerce support services, which they operated alongside the trading activities. The Company’s core business activities include the manufacturing of home and lifestyle products, such as bed sheets, curtains, comforters, table linens, and pillow covers, as well as food products, with a primary focus on sauces, marketed under its own brands. In addition to its manufacturing operations, the Company is also involved in the trading of agro-based products, cotton, and fabrics.It further undertakes the sale of various other goods, primarily through gated market platforms, enabling access to niche buyers. In addition to the product-based operations, the Company offers a comprehensive range of digital and e-commerce support services designed to enable the growth of consumer brands in the online space. These services provide end-to-end solutions across marketing, technology, and operations, catering to both direct-to-consumer (D2C) businesses and corporate clients. Through these offerings, they assist brands in enhancing visibility, expanding their digital presence, and driving sales growth. As per financial performance, Encompass Design India Limited has posted total income / net profits of Rs 21.69 / (1.29) Cr (FY23), Rs 40.14 / Rs 6.87 Cr (FY24), Rs 55.01 Cr / 10.79 Cr (FY25) and Rs 28.17 Cr / 5.04 Cr (upto 30.09.25 FY26). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 7.21 and average RoNW of 32.50% for last three fiscals. Issue is priced at a P/BV of 29.64 as per NAV of Rs 3.61/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 22.06, 14.06 and 15.04 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, 3 Dimension Capital Services Limited is associated with this SME IPO, and has handled 2 IPOs in last three fiscal years. From last two SME IPOs, all opened above issue price or at par, on the day of listing. As of now, from last SME IPOs, all are trading above issue price or at par. ( As on 01.12.25 ) As per financials, Encompass Design India Limited has shown good growth, RoNW is 33.13% and P/E is 22.06, 14.06 and 15.04 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced. Company is engaged in the business of manufacturing of home and lifestyle products, which is competitive business segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Amit Rajendra Prasad Dalmia
• 2 Mrs. Susmita Amit Dalmia
• 3 Mr. Ruman Kailash Agarwal
• 4 Mr. Yogendra Vashishta