Incorporated in 2018, the Company, 'Faalcon Concepts Limited' is engaged in designing, engineering, fabrication and installation of façade systems. They believe in offering solutions to the customers with respect to their requirement of façade installation in complex projects. They specialise in technically demanding facades. They offer various range of products to meet the demands of the customers. Over the years, they have developed a name for themselves among the customers. The product basket ranges from glazing /curtain walls, high end aluminium doors & windows, skylights, canopies, frameless glazing, MS structures, stone cladding, metal cladding, roofing & others. They believe in offering facades which are resistant against UV rays, acidic rain, dust, noise and others. The registered office of the Company is situated at Gurugram, Haryana. They have catered to the customers base in various states such as Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Karnataka, Gujrat, Punjab and Delhi. The Company is accredited with Federation of Indian Export Organisations (FIEO) as Merchant Exporter with IEC number, they export the façade related material such as Glass, Aluminium, Aluminium Composite Panel (ACP), High Pressure Laminate (HPL), Silicon and Fasteners to the foreign clients situated at TOGO West Africa, GHANA West Africa. They have completed a varied variety of projects for Schools, financial institutions, hospitality installations, corporate buildings, and luxury houses with success. The clients are spread across India and the World, in communities from various states. The team is totally responsible to produce a comprehensive turnkey package with all project specifics from the original design phase to the final installation for any commercial or residential facade project. They have offered the services for varied type of facade projects including residential buildings, commercial complexes, schools, parks etc. The recognised list of clients include Espirit Techno Consultant Pvt. Ltd, Galaxy Magnum Infra Height Limited, Babbar Films, Maconns Infra Pvt. Ltd, Silvers Stone Regency Pvt. Ltd., St Xavier School Gurgaon High School etc. among others. They have also developed relations with some of the recognised suppliers in the industry to fulfil the raw material supplies. As per financial performance, Faalcon Concepts Limited has posted total income / net profits of Rs 5.02 Cr / Rs 0.12 Cr (FY21), Rs 18.53 Cr / Rs 0.98 Cr (FY22), Rs 13.25 Cr / Rs 1.80 Cr (FY23) and Rs 12.49 Cr / Rs 1.32 Cr (upto 31.01.24 FY24). So as per previous financials data, company has shown zigzag results, and sudden increase in net profit, just before IPO generates doubts. Issue is priced at a P/BV of 2.30 as per NAV of 26.95 as on post issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 43.30, 23.59 and 18.74 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Navigant Corporate Advisors Limited is associated with this SME IPO and handled 3 SME IPOs in last 3 year. From last 3 SME IPOs, one opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 3 SME IPOs, all are trading above or at par issue price. ( As on 15.04.24 ) As per financials, Faalcon Concepts Limited has shown zig-zag results, RoNW is 54.81% and P/E is respectively 43.30, 23.59 and 18.74 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced and sudden rise in net-profit is very surprising. Company is engaged in designing, engineering, fabrication and installation of façade systems, which is highly competitive and fragmented segment. Performance of BRLM is average. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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