Incorporated in 2010, Humming Bird Education is a Delhi based company involved in the business related to education. The company organizes Olympiad, a competitive examination where students are evaluated and their academic performance is ranked relative to their peer group. Humming Bird Education uses factual, conceptual, reasoning, logical, analytical and problem-solving skills to help students better understand their strengths and weaknesses. The company provides study material, free mobile app, performance analysis report for all participants. The Olympiad results also give an opportunity for schools to analyse the performance of their teachers with the help of deep insight. Humming Bird Education is an asset-light and centrally managed company. Products Offered 1. Humming Bird Talent Search Examination (HBTSE) - A Mathematics & Science Olympiad for Class 1 to 122. Humming Bird Commerce Competency Olympiad (HCC) - A commerce Olympiad that includes Accounts, Business Studies, and Economics for Classes 11 & 12.3. Humming Bird Cyber Olympiad (HCO) - A Computer Olympiad for Class 1 to 12.4. Humming Bird English Olympiad (HEO) - An English Olympiad for Class 1 to 12. 5. Humming Bird G.K. Olympiad (HGO) - A General Knowledge Olympiad for Class 1 to 12. 6. Humming Bird Hindi Olympiad (HHO) - A Hindi Olympiad for Class 1 to 12. 7. Humming Bird Math + Computer + English + Combined Olympiad (MCSE) - Olympiad that includes Mathematics, Computer, Science & English for Class 1 to 12. 8. Humming Bird MULTIPLE INTELLIGENCE TEST (HMIT) - MULTIPLE INTELLIGENCE TEST for Class 1 to 12. This Test includes questions on Mathematics, G.K., Science, English and Multiple Intelligence. 9. Humming Bird Mathematics Olympiad (HMO) - A Mathematics Olympiad for Class 1 to 12. The HMO is also available in ENGLISH MEDIUM, TAMIL MEDIUM and HINDI MEDIUM. 10. Humming Bird Science Olympiad (HSO) - A Science Olympiad for Class 1 to 12. The HSO is also available in ENGLISH MEDIUM, TAMIL MEDIUM and HINDI MEDIUM. 11. Problem Solving Olympiad (PSO) - A Problem Solving Olympiad for Class 3 to 12 12. SPELL BEE - A Spelling Competition for Class 1 to 12. For the Fiscal years ended on March 31, 2018, March 31, 2017, and March 31, 2016, the company's gross revenue stood at Rs. 117.09 Lakhs, Rs. 93.70 Lakhs and Rs. 51.56 Lakhs respectively. Further, its PAT for the Fiscal years ended on March 31, 2018, March 31, 2017, and March 31, 2016, stood at Rs. 10.57 Lakhs, Rs. 4.46 Lakhs and Rs. 0.78 Lakhs respectively. On the financial performance front, Humming Bird has posted turnover/net profits of Rs. 0.52 cr. / Rs. 0.01 cr. (FY16), Rs. Rs. 0.94 cr. / Rs. 0.04 cr. (FY17), Rs. 1.17 cr. / Rs. 0.11 cr. (FY18). For the H1 of FY19, it has earned a net profit of Rs. 0.37 cr. on a turnover of Rs. 1.09 cr. Sudden jump in top-line and bottom-line of FY19 is very surprising. For last three fiscals, Humming Bird has posted (on a consolidated basis) an average EPS of Rs. 4.31 and an average RoNW of 57.73%. The issue is priced at a P/BV of 2.71 on the basis of its NAV of Rs. 48.67 post issue. If we annualise latest earnings and attribute it on fully diluted post issue equity, then asking price is at a P/E of around 11 thus issue appears fully priced and if we take FY18 earnings, then P/E is around 76. Comparison with listed peers is given in above table and according to that listed big names like Navneet Education and C L Educate are also available at nearly same valuations. But company is not exactly comparable with peers. On BRLM's front, for Share India Services Limited this is the 2nd SME IPO. Last IPO opened above issue price with around 2% listing gains and currently trading at issue price. ( As on 14.03.19 ) Company has shown improvements in results, RoNW is 57.73% and issue looks fully priced with respect to current earnings. If we consider FY 18 earnings, than issue is very highly priced and IPOs from education industry has very bad past records. So we give AVOID rating to this SME IPO.
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