Finelistings Technologies Limited

Finelistings Technologies Limited is engaged in diversified business viz., (a) retail of pre-owned luxury car; and (b) software development services, that address digital transformation, data analytics, technology consulting, infrastructure and security needs of the customers. The offerings are spread across the spectrum of various digital technologies such as cloud-based services, IT consulting services such as, big data analytics, cloud architecture, data engineering, IoT solutions and offering based solutions such as, business intelligence analytics, cloud development, cloud solutions, data management, digital transformation, IoT development and web development. Under the pre-owned luxury car retail business, they are focused on the used premium and high-end luxury cars where the average sale price is Rs 40 lakhs. They currently have a limited presence over the pre-owned value chain, such as after sales services and repairs (including sales of spare parts, lubricants and accessories), which they undertake through the affiliated service centers. They also help the clients in securing financial assistance from third-party financers. They started the operations and opened the first showroom under the brand “Finecars” on August, 2022 at Ambience Mall, Vasant Kunj, National Capital Region (NCR). As per financial performance, Finelistings Technologies Limited has posted total income / net profits of Rs 1.46 Cr / Rs (0.17) Cr (FY21), Rs 6.94 Cr / Rs (0.08) Cr (FY22), Rs 13.90 Cr / Rs 1.78 Cr (FY23) and Rs 13.59 Cr / Rs 2.76 Cr (upto 29.02.24 FY24). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs (4.10) and average RoNW of 14.52% for last three fiscals. Issue is priced at a P/BV of 2.27 as per NAV of 54.23 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 (536.93), 25.00 and 14.80 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Fedex Securities Private Limited is associated with this SME IPO and handled 13 SME IPOs and 1 Main board IPO in last 3 year. From last 10 SME IPOs, all opened above issue price or at par on the day of listing and From last 1 Main board IPO, that is opened above issue price on the day of listing. As of now from last 10 SME IPOs, four are trading below issue price and remaining are trading above issue price and From last 1 Main board IPO, that is trading above issue price. ( As on 02.05.24 ) As per financials, Finelistings Technologies Limited has shown declining results, RoNW is 50.85% and P/E is respectively (536.93), 25.00 and 14.80 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is in diversified business viz., (a) retail of pre-owned luxury car; and (b) software development services, 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.

• 1  Mr. Aneesh Mathur
• 2  Mr. Arjun Singh Rajput