Holmarc Opto-Mechatronics Limited

As per financial performance, Holmarc Opto-Mechatronics Limited has posted total income/net profits of Rs 15.73 Cr / Rs 0.68 Cr (FY21), Rs 21.17 Cr / Rs 1.55 Cr (FY22) and Rs 29.18 Cr / Rs 3.56 Cr (FY23), So company has shown good results, but sudden rise in bottom-line before IPO is very surprising. Company has posted an average EPS of Rs 3.36/- and average RoNW of 23.30% for last three fiscals. Issue is priced at a P/BV of 1.75 as per NAV of Rs 22.88/- as on post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 25.92 and as per FY23 earnings P/E is 11.29. As per RHP, there is no peers. On BRLM's front, Finshore Management Services Limited is associated with this SME IPO and handled 21 SME IPOs in last 4 years. From last 10 IPO, 3 opened below issue price and remaining opened at par or above issue price on the listing day. As of now from last 10 IPO, 3 are trading below issue price and remaining are trading above issue price. ( As on 12.09.23 ) As per financials, Holmarc Opto-Mechatronics Limited has shown good results, RoNW is 30.70% and P/E is respectively 25.92 and 11.29 as per FY22 and FY23 earnings. As per FY22 earnings issue looks fully priced and as per FY23 earnings issue looks fairly priced. Also sudden rise in net profit just before IPO and higher issue expenses are very surprising. Company is in business of manufactures scientific and engineering instruments for research, industry, and education, which is highly fragmented and competitive. Performance of BRLM is good. So we are giving NEUTRAL rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Mr. Jolly Cyriac
• 2 Mr. Ishach Sainuddin