Identical Brains Studios Limited

As per financial performance, Identical Brains Studios Limited has posted total income / net profits of Rs 3.91 Cr / Rs 0.51 Cr (FY22), Rs 8.08 Cr / Rs 1.61 Cr (FY23), Rs 20.26 Cr / Rs 5.35 Cr (FY24) and Rs 11.50 Cr / Rs 2.41 Cr (H1 FY25). So as per previous financials data, company has shown good growth, but trade receivables are around 30% of FY24 total income that is high. Company has posted an average EPS of Rs 3.19 and average RoNW of 47.53% for last three fiscals. Issue is priced at a P/BV of 2.21 as per NAV of Rs 24.46/- as on Post Issue. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 46.96, 14.17 and 15.74 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Socradamus Capital Private Limited is associated with this SME IPO and this is first IPO from the lead manager. ( As on 12.12.24 ) As per financials, Identical Brains Studios Limited has shown good growth, RoNW is 44.42% and P/E is respectively 46.96, 14.17 and 15.74 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced, but higher trade receivables raises doubts. Company is a provider of computer-generated visual effects ('VFX') services, which is highly competitive and fragmented business segment. The sector is growing exponentially and this is first SME IPO from the BRLM. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Sameer Rai