Lamosaic India Limited

As per financial performance, Lamosaic India Limited has posted total income / net profits of Rs 10.03 Cr / Rs 0.51 Cr (FY22), Rs 31.76 Cr / Rs 4.07 Cr (FY23), Rs 55.66 Cr / Rs 8.23 Cr (FY24) and Rs 72.87 Cr / Rs 10.76 Cr (QFY24). So as per previous financials data, company has shown good growth, but trade receivables are around 33% and inventory level is also very high. Company has posted an average EPS of Rs 7.64 and average RoNW of 41.71% for last three fiscals. Issue is priced at a P/BV of 2.37 as per NAV of Rs 84.36/- as on post issue. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 50.78, 25.12 and 9.61 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front,  Inventure Merchant Banker Services Private Limited is associated with this SME IPO and handled 13 IPOs in last 3 years. From last 10 IPOs, two opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 IPOs, all are trading below issue price as on today. ( As on 19.11.24 ) As per financials, Lamosaic India Limited has shown good growth, RoNW is 53.94% and P/E is respectively 50.78, 25.12 and 9.61 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced, but higher trade receivables, high inventory level and such high margins raises doubts. Company is in business of trading of flush doors, decorative laminates, acrylic sheets, printing paper (base), plywood, etc, which is highly fragmented and competitive business segment. Performance of BRLM is very poor post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Vinod Visaria Juthalal
• 2 Mr. Jay Manilal Chheda
• 3 Mr. Jitesh Khushalchand Mamaniya