Infollion Research Services Limited is a tech-oriented marketplace, operating in the B2B Human Cloud segment, catering to on-demand contingent hiring and work arrangements with senior management talent, subject matter experts, and high-ranking, seasoned professionals. They provide a platform for workers or knowledge providers (gig workers) and employers or knowledge seekers to connect and find synergetic outcomes. The key clients include top-tier Global Management Consulting firms, renowned Private Equity funds, Hedge funds, and mid-tier Corporates. Company's proprietary technology stack and research capabilities empower them to assist the clients in connecting with custom-curated, precise, and vetted subject matter experts. We operate in the premium segment of the gig-economy and are one of the enablers of contingent hiring, temporary workforce management, contracting SOW-employees, high-level independent consultations, knowledge tours, and more. They cater to global hiring requirements for the domestic and international clients. Company's 'Experts' are the key ingredients in the business model and holds key position in the work intermediation platform. They rely on the Experts to deliver quality services that fulfil the need of the clients and uphold the reputation with clients. Infollion's experts network as on the date of filing this Red Herring Prospectus consists of 62,194 experts which includes 10,573 international experts spans across the globe and 51,621 domestic experts spans across all corners of India and almost representing every industry function. Company offers following services : (1) On-Demand Experts (2) Knowledge Tours (3) 1-o-1 Sit-ins (4) Webinars (5) Pex-Panel (6) Flexi-staffing/ SOW Employees / Temporary Employees / Associate Employees As on April 30, 2023, the Company has employed 117 permanent full-time employees including managerial personnel in various departments. As per financial performance, Infollion Research Services Limited has posted total income/net profits of Rs 16.06 Cr / Rs 2.08 Cr (FY21), Rs 22.20 Cr / Rs 3.41 Cr (FY22) and Rs 35.30 Cr / Rs 5.58 Cr (FY23), So company has shown good results. But company's more than 80% revenue comes from top 5 clients, which is a concern for service companies. Company has posted an average EPS of Rs 5.85/- and average RoNW of 33.24% for last three fiscals. Issue is priced at a P/BV of 3.82 as per NAV of Rs 21.44/- as on 31.03.23. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 23.33 and as per annualised FY23 earnings P/E is 14.24. As per RHP, there are no listed peers. On BRLM's front, Holani Consultants Private Limited is associated with this SME IPO and handled 4 SME IPOs in last 3 years. From last 4 SME IPOs, 3 opened above issue price or at par and remaining below issue price on the listing day. As of now from last 4 IPOs, all are trading above issue price. ( As on 23.05.2023 ) As Per financials, Infollion Research Services Limited has shown good results, RoNW is 34.85% and P/E is respectively 23.33 and 14.24 as per FY22 and FY23 earnings, which looks fully priced. Company is in B2B human cloud segment, which is expected to see good growth in upcoming years, but this segment is very competitive and it may be difficult to maintain same growth rate and margin in future for company. Performance of BRLM is good. So we are giving NEUTRAL rating to this SME IPO, but SME IPOs are very risky in nature due to limited clients.
✍️ Post a Comment