Interiors and More Limited was founded in 2012. Initially, they focused on trading artificial flowers, importing them and selling them domestically. An artificial flower resembles a real flower but is non-perishable in nature, hence it is commonly utilized in Indian marketplaces. Artificial flowers are commonly utilized in weddings, celebrations, corporate settings, and home decor. They have been serving businesses of all sizes for over a decade. With more time and expertise, the organization began to adapt to the market and comprehend the needs of its clients. Following the success with artifical flowers, the company expanded into decorative items such as vases, plants, planters, wedding props, lights, furniture, fabric, chandeliers, candles, fragrance, and other related décor items. As on today, they are a manufacturer and trader of quality artificial flowers, plants, and other home and office décor items. They have an in-house manufacturing plant where they make the items. The company sources raw materials from both domestic and foreign markets. The primary revenue of the company is generated from the sales of artificial flowers, plants & leaves. Artificial flowers, plants & leaves have been a core focus of the business, and they have established themselves as a reputable provider in this particular market segment. The expertise in sourcing high-quality materials, manufacturing realistic-looking flowers, and meeting customer demands has contributed to the success in this area. The company started manufacturing in 2021 when they established the first facility at Plot No. 301/1, II Phase, GIDC, Umargam, District Valsad, Gujarat. The facility is fully furnished with all the tools required for production, test equipment for quality control, and additional handling supplies to enable efficient assembly and simple logistics. They work hard to keep the facilities safe by following the main safety guidelines set forth in the internal health and safety handbook and holding frequent safety meetings. Over the past few years, as they have expanded into new product categories, the product mix has changed. The goal is to continuously grow the product line by introducing new styles and varieties to the current selection. They communicate with the customers directly through marketing on a continuous basis. In order to better meet market demands, the sales team works directly with the clients to get their opinions and insights on impending industry trends. This helps to enhance the range of products. As per financial performance, Interiors and More Limited has posted total income / net profits of Rs 6.63 Cr / Rs 0.43 Cr (FY21), Rs 9.99 Cr / Rs 1.04 Cr (FY22), Rs 25.27 Cr / Rs 5.93 Cr (FY23) and Rs 18.54 Cr / Rs 3.55 Cr (upto Q3 FY24). So as per previous financials data, company has shown good growth. But maintaining similar margins in future may be difficult. Company has posted an average EPS of Rs 6.67 and average RoNW of 41.95% for last three fiscals. Issue is priced at a P/BV of 8.65 as per NAV of 26.23 as on 31.12.23. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 152.10, 26.79 and 33.59 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Gretex Corporate Services Limited is associated with this SME IPO and handled 19 SME IPOs in last 3 year. From last 10 SME IPOs, three opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 19 IPOs, two are trading below issue price and remaining are trading above issue price.( As on 13.02.24 ) As per financials, Interiors and More Limited has shown good growth, RoNW is 59.57% and P/E is respectively 152.10, 26.79 and 33.59 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced and maintaining such margin in future will be difficult. Also high inventories may impact profitability in future. Company is engaged in business of manufacturing & trading artificial flowers & decorative items, which is highly competitive and fragmented segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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