Innovative Ideals and Services (India) Limited

Started in 2010, Innovative Ideals and Services (India) Limited is Mumbai based company, providing services of System Integration for security, safety and building automation and installation of various electronics systems. They provide a wide range of services with respect to security and electronic systems, such as, Video Door Phone, Audio Door Phone, Access Controls, HomeAutomation Systems, Intrusion Alarm System, CCTV Systems, Fire Alarm Systems and Telecom Products. Company targets the requirements of residential construction industry in B2B segment. Company provides Video Door Phones under its own brand names, namely, 'Onyx' and 'Inok'. Further, home automation solutions are provided under the brand name of 'eHomes'. Strengthening its service to B2B segment, Company introduced Fibre to the Home (FTTH) solutions in the residential projects which is a single line connection for Voice, Direct To Home and Broadband internet services. This fibre allows multiple Internet Service Providers (ISPs) to use the single fibre cable to provide their services. To expand the product portfolio to reach B2C segment, company has developed 2 innovative products, 'Savior' and 'ArmHer', addressing the need of safety of the citizens, primarily, children, women and senior citizens. Apart from this, they have also launched basic feature mobile phones which are sold under brand name, 'Inoyo'. As on August 31, 2018 company has 67 employees, who look after the business operations, administrative, secretarial, legal, marketing and accounting functions. As per financial performance, Innovative has posted total income/net profits of Rs. 12.82 cr. / Rs. 0.50 cr. (FY14), Rs. 12.45 cr. / Rs. 0.16 cr. (FY15), Rs. 12.18 cr. / Rs. 0.01 cr. (FY16), Rs. 10.75 cr. / Rs. 0.97 cr. (FY17) and Rs. 20.32 cr. / Rs. 3.09 cr. (FY18). So company has shown zig-zag performance and in FY18, there is rise in top-line and bottom-line. As per company, this rise is due to acquisition of two proprietorship concern. Trade receivables were higher than total revenue till FY17 and still its more than 50% of total revenue. For last three fiscals it has posted an average EPS of Rs. 2.93 and an average RoNW of 16.34%. Issue is priced at a P/BV of 2.49 on the basis of NAV of Rs. 16.08 as on 31.03.18. If we consider latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 14.74 and there is no listed peers as per RHP. On BRLM's front, for Pantomath Capital Advisors Private Limited this is the 82nd IPO. From last 10 IPOs, 1 at par and remaining above issue price with 1 to 10% premium. As of now, from last 10 IPOs, 3 are trading below issue price and remaining above issue price. ( As on 19.09.18 ) Company has shown zig-zag performance, RoNW is 16.34% and issue is fully priced. If company can maintain the same profit in future or not, that need to be watched. The segment of security equipments and system integration for security is highly competitive with presence of both local and international players, but has great opportunity for growth also as nearly all commercial and residential projects are insisting for security systems nowadays. Also public places are also being covered under  Performance of BRLM is good. So we give NEUTRAL rating to this SME IPO.

• 1 Mr Maqsood Shaikh
• 2 Mrs Tazyeen Shaikh