Started in 1999, 'Innovators Facade Systems Limited' is, Mumbai - Maharastra based company, engaged in designing, engineering, fabrication and installation of facade systems. Company believes in offering total solutions to its customers with respect to their requirement of facade installation in complex projects. IFSL's manufacturing facility is situated at Wada, Maharashtra and is spread over 1,25,000 square feet. Company executes end to end fabrication of its product i.e. from designing of facades to dispatching. Its product basket ranges from glazing /curtain walls, high end doors & windows, skylights, canopies, frameless glazing, MS structures, stone cladding, metal cladding, roofing, & others. Company believes in qualitative manufacturing and offer facades which are resistant against UV rays, acidic rain, dust, noise and others. They have 7 branch offices across India to aid its operations. They are executing projects in various states such as Maharashtra, Goa, Haryana, Karnataka, Tamil Nadu, Uttar Pradesh and West Bengal. At present, its major contracts are being executed in the state of Maharashtra. Over the year, company has executed around 200 projects. They have offered services for varied type of construction projects including residential buildings, commercial complexes, IT Parks, airports, retail and pharma projects. Some of their clients include M/s.Hiranandani Realtors Pvt. Ltd., M/s. Relcon Infraprojects Limited, M/s. Larsen & Toubro Limited, M/s.Grauer & Weil (I) Limited etc. They have also developed relations with some of the recognised suppliers in industry to fulfil raw material supplies. As on December 31, 2017, the present manpower strength is 198 employees. As per financial performance, IFSL has posted total revenue/net profits of Rs. 77.98 cr. / Rs. 2.32 cr. (FY13), Rs. 83.75 cr. / Rs. 2.69 cr. (FY14), Rs. 92.05 cr. / Rs. 3.14 cr. (FY15), Rs. 94.39 cr. / Rs. 1.66 cr. (FY16) and Rs. 102.36 cr. / Rs. 1.82 cr. (FY17). For the period upto Q3 of FY18, it has earned net profit of Rs. 5.75 cr. on a turnover of Rs. 126.30 cr. means it has crossed last year total revenue in just nine months and profit is also very high, which is very surprising. Company has suffered set in bottom-line for FY16 and FY17. Issue is priced at a P/BV of 1.57 on the basis of its NAV of Rs. 45.96 as on 31.12.17. For last three fiscals it has posted an average EPS of Rs. 2.13 and an average RoNW of 3.41%. If we annualise latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 18, which looks fully priced. As per DRHP, there is no listed peers which can be compared with IFSL. On BRLM's front, this is 62nd IPO from Pantomath in last three fiscals. Last 10 listings opened at a premium ranging from 1.6% to 20% on the offer price on the day of listing. As per financials, company's performance is good and consistent, but there is sudden jump in FY18 income and net profit, RoNW is 3.41% for last three fiscals and issue is fully priced as per latest earnings. From IPO fund, company will upgrade its existing manufacturing facility and it will help them to speedup their work. So, we give NEUTRAL rating to this SME IPO.
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