GNG Electronics Limited is India's largest refurbisher of laptops and desktops and among the largest refurbishers of ICT Devices overall, both globally and in India with significant presence across India, USA, Europe, Africa and UAE, in terms of value, as of March 31, 2025. They follow a repair-over-replacement approach, which provides cost advantages and helps achieve true sustainability by reducing carbon footprint. Company operates under the brand 'Electronics Bazaar', with presence across the full refurbishment value chain i.e., from sourcing to refurbishment to sales, to after – sale services and providing warranty. They also provide tailor – made solutions for the customers. Their comprehensive process of refurbishment of ICT Devices such as laptops, desktops, tablets, servers, premium smartphones, mobile workstations and accessories ensures that such devices are similar to new, in terms of both performance and aesthetics, and able to offer laptops at one-third price of new devices and other devices like desktops, tablets, servers, premium smartphones, mobile workstations and accessories at 35-50% price of new devices. They are also a certified refurbishment partner with Lenovo and HP, which are top two global brands, in terms of market share of 26% and 22%, respectively, as of CY 2024. Additionally, they serve as IT asset disposition ('ITAD') partners for leasing companies, IT consulting companies and banks as they meet their sustainability and data privacy requirements. Company offers other value – added services such as ITAD and e – waste management services, warranties, doorstep service, on–site installation, flexible pay options, easy upgrades, assured buyback programmes and buyback programmes for refurbished ICT Devices. They provide tailored buyback solutions for laptops and desktops to help large format retail stores such as Vijay Sales (India) Private Limited ('Vijay Sales') and OEM brand stores such as HP India Sales Private Limited ('HP') and Lenovo Global Technology (India) Private Limited ('Lenovo') to run efficient, customer – friendly buyback programs facilitating sale of new devices. They also offer other categories of ICT Devices such as open – box and brand new ICT Devices, providing customers with a range of options that cater to different needs and budgets. In addition, they also offer ICT Devices customised to the customer specifications and requirements. As of March 31, 2025, the portfolio included 5,840 SKUs. Company has sales network with the refurbished ICT Devices being sold in 38 countries as of March 31, 2025. The sales network comprises 4,154 touch-points, in India and globally, as of March 31, 2025. These touch-points include sale of ICT Devices through IT Solutions Providers/ Value Added Resellers, System Integrators, E-Tailers, Rental and Leasing Companies and Distributors/Aggregators. They even supply to global refurbishment companies including US based companies such as Joy Systems Inc, HUBX LLC, PlanITROI LLC, and Europe based companies such as PhoenixRM Ltd (Trading as GreenIT), ATX Computers Group. Additionally in India, they supply to HP India Sales Private Limited, Lenovo Global Technology (India) Private Limited and Vijay Sales (India) Private Limited Similarly, company has a multi – channel global procurement network of 557 suppliers supported by an extensive procurement network in India and across the globe. The procurement network comprises corporates, consulting companies, intermediaries, recyclers, refurbishment partners, educational institutes, leasing companies, NBFCs, large format retail stores and OEM brand stores, as of March 31, 2025. As refurbishers, they also enable HP and Lenovo for their assets/devices recovery services which they offer to their corporate customers which also helps them enable sale of new devices. Their procurement partners, include USA based Iron Mountain and Apto Solutions Inc; Australia based Green Box Group Pty Ltd and Renew IT Pty Ltd; HP, Lenovo, Microsoft, Tata Capital Limited, and Steller Information Technology Private Limited (BitRaser). They are a Company with domestic and international operations, with five refurbishing facilities located across India, USA and UAE. They have one facility in Navi Mumbai, Maharashtra, one facility in Dallas, Texas, USA and three facilities in Sharjah, UAE, aggregating to 58,127.82 sq. ft. Each of our facilities is equipped with extensive refurbishing capabilities which includes screening and parts repair (L1 and L2 activities) and also motherboard repairs (L3 activities) along with laser keyboard reprinting, paint, fabrication and cosmetic work. They are amongst a few companies globally specialising in LCD repairs including repolarisation and light guide plate ('LGP') correction. As per financial performance, GNG Electronics Limited has posted total income / net profits of Rs 662.79 Cr / 32.43 Cr (FY23), Rs 1,143.80 Cr / Rs 52.31 Cr (FY24) and Rs 1,420.36 Cr / 69.03 Cr (FY25). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 5.89 and average RoNW of 30.40% for last three fiscals. Issue is priced at a P/BV of 11.40 as per NAV of Rs 23.31/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 83.33, 51.66 and 39.14 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, three lead managers Motilal Oswal Investment Advisors Limited, IIFL Capital Services Limited and JM Financial Limited are associated with this IPO, and have handled 101 IPOs in last three fiscals. ( As on 18.07.25 ) As per financials, GNG Electronics Limited has shown good sales growth, RoNW is 30.40% and P/E is 83.33, 51.66 and 39.14 respectively as per FY23, FY24 and FY25 earnings. So issue looks fully priced. Company is India's largest refurbisher of laptops and desktops, the sector is expected to grow at good rate. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment