Started in 2007, Jakharia Fabric Limited is a Thane - Maharastra based company engaged in the business of dyeing and processing of fabrics on job work basis for other textile companies as well as for own manufacturing product lines. The Company procures Grey Fabric from the market and further dyes and finishes the same as per the client's requirements on the basis of the quality of the fabric, sizing requirements etc. It also outsources certain processes like the weaving of the fabric and printing as per the demand of the customers based on the quality required. The Company manufactures and processes the fabric especially suitable for Shirtings. Jakharia Fabric Limited is in process of setting up an additional processing facility at Plot No. J1/1, MIDC Tarapur Industrial Area, Boisar, Palghar - 401 506. This facility is being set up through M/s Jakharia Industries, which is a Partnership Firm, wherein the Company is a partner. The Partnership firm intends to carry on the business of preparing spinning doubling texturing weaving, winding, knitting, scouring, sizing, bleaching, coloring, dying, printing and finishing and processing working or manufacturing in any way whatsoever of cotton, linen, wool synthetics and various other textile products. The Company has set-up two (2) processing units located at MIDC Area of Saravali, Bhiwandi in Maharashtra and MIDC Area of Tarapur, Bhiwandi in Maharashtra. The plant has the facilities for dyeing and processing wide range of fabrics. As of March 31, 2018, the company has 319 employees on its payroll. As per financial performance, company has posted total income/net profits of Rs. 47.87 cr. / Rs. 0.81 cr. (FY13), Rs. 75.82 cr. / Rs. 3.57 cr. (FY14), Rs. 89.17 cr. / Rs. 4.33 cr. (FY15), Rs. 77.23 cr. / Rs. 4.46 cr. (FY16) and Rs. 77.02 cr. / Rs. 3.39 cr. (FY17). For the period upto Q3 of FY18, it has earned net profit of Rs. 1.89 cr. on a turnover of Rs. 53.76 cr. So top-line and bottom-line are almost similar. For last three fiscals, it has posted an average EPS of Rs 14.28 and an average RoNW of 23.41%. Issue is price at P/BV of 2.45 based on its NAV of 73.56 as on 31.12.17. If we annualise latest net profit of FY18 and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 29 plus, against industry average P/E of 33.90. As per offer documents it has shown Vishal Fabrics Ltd, Gini Silk Mills, Siyaram Silk and Donear Industries Bombay Dyeing as its listed peers who are currently trading at a P/E of around 76, 32, 5 and 17.25 (as on 22.06.18). So issue os fully priced as per latest earmimgs On BRLM's front, for Aryaman Financial Services limited, this is the 31st IPO and from last 10 IPOs, 5 opened below issue price, 3 opened at par and other listed with 1% to 10% premium on the day of listing. As of now, from last 10 IPOs, 5 are trading below issue price and remaining above issue price. ( As on 22.06.18 ) As per financials, company's performance is stable with fall in top-line and bottom-line in FY17, RoNw is 23.41% for last three fiscals and issue is fully priced as per latest earnings. Performance of BRLM is also not good. So we give NEUTRAL rating to this SME IPO as per current market situation.
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