Inspire Films Limited

As per financial performance, Inspire Films Limited has posted total income/net profits of Rs 19.42 Cr / Rs (0.83) Cr (FY21), Rs 38.15 Cr / Rs 0.25 Cr (FY22) and Rs 48.84 Cr / Rs 4.04 Cr (FY23), So company has shown good growth, but sudden rise in bottom-line before IPO is very surprising. Company has posted an average EPS of Rs 1,910.67/- and average RoNW of 14.74% for last three fiscals. Issue is priced at a P/BV of 2.34 as per NAV of Rs 25.23/- as on post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 310.02 and as per FY23 earnings P/E is 19.84. As per RHP, comparison between peers is shown in above table. On BRLM's front, Narnolia Financial Services Limited is associated with this SME IPO and handled 2 SME IPOs in last 1 years. From last 2 IPO, all opened above issue price or at par on the listing day. As of now from last 2 IPOs, all are trading above issue price. ( As on 22.09.23 ) As per financials, Inspire Films Limited has shown good results, RoNW is 30.88% and P/E is respectively 310.02 and 19.84 as per FY22 and FY23 earnings. So, issue looks aggressively priced. Also sudden rise in net profit and higher value of trade receivables are very surprising. Company is in business of providing digital content and related services for television and film-making, which is highly fragmented and competitive segment. So we are giving NEUTRAL rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Mr. Yash Arabinda Patnaik
• 2  Beyond Dreams Entertainment Private Limited