Started in 2006, Focus Suits Solutions & Services Ltd is Market Research Company based in Bangalore having presence across 18 major countries in Asia, Middle East and Latin America. They offers Fieldwork, Panel Research and primary data collection services to the other Market Research Companies. They are a member of ESOMAR and CASRO. They have team of project managers who handled the project execution of different fieldwork across various industries like healthcare, automobiles, IT and telecommunications, FMCG, Retail etc. They help their clients and assist them in making strategic decisions in their respective lines of business. Company's team of project managers have, over the years, built considerable expertise in project execution of different fieldwork across various industries like healthcare, automobiles, IT and telecommunications, FMCG, Retail etc. A high proportion of their revenues come from foreign markets. The primary services they offer:A) Qualitative FieldworkB) Sensorial FieldworkC) Usability FieldworkD) Data Acquisition and Data Analysis On performance front, Focus has (on a consolidated basis) posted revenue of Rs. 15.42 crore with a net profit of Rs. 1.29 crore for FY17. For first four months ended on 31.07.17 it has reported net profit of Rs. 0.56 crore on total revenue of Rs. 5.78 crore. Surprisingly, it has preferred to give details of first four months working instead of H1. For FY17 it has posted an EPS of Rs. 5.00 and RoNW of 28.37% on an equity base of Rs. 0.15 crore. If we annualize latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 14. Issue is priced at a P/BV of 1.06 based on its NAV of Rs. 16.88 as on 31.07.17 and at a P/BV of 1.05 on the basis of post issue NAV of Rs. 17.17. As per offer document, MRSS is the listed peer for this company. MRSS is trading at a P/E of around 36 (as on 16.11.17). MRSS has given handsome rewards since listing of its IPO and is the major stakeholder. On a standalone basis Focus has posted revenue/net profits of Rs. 6.02 cr. / Rs. 0.14 cr. (FY15), Rs. 7.51 cr. / Rs. 0.65 cr. (FY16), Rs. 9.51 cr. / Rs. 0.98 cr. (FY17). For first four months of the current fiscal it has reported net profit of Rs. 0.46 cr. on revenue of Rs. 3.96 cr. On merchant banker's front, this is the 58th mandate from its stable in last three fiscals. Out of last 10 listings, 1 opened around par and the rest with premiums ranging from 1% to 130% on the day of listing. 130% rewards are from the only main board IPO of this merchant banker i.e. Astron Paper. As per financials, company's growth is good, RoNW is 28.37% for last three fiscals and issue is reasonably priced as per latest earnings. So we give SUBSCRIBE rating to this SME IPO.
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