Macobs Technologies Limited

Macobs Technologies Limited operates within the male grooming industry, specializing in the niche area of below-the-belt grooming, and conducts its business exclusively through e-commerce channels such as our website https://menhood.in/, without maintaining physical stores or a traditional retail footprint. This focus addresses a significant gap in the market, particularly in regions where discussion around such aspects of personal care is often limited. They offer a range of products specifically designed for men's grooming needs, encompassing tools like specialized trimmers for sensitive areas, hygiene products tailored for male skin, and a variety of self-care items. These products are developed with a commitment to innovation, safety, and effectiveness, catering to the unique requirements of their target demographic. Beyond its product range, the Company is dedicated to educating and changing societal perceptions about male grooming, primarily leveraging online platforms. This involves creating and sharing content that promotes awareness and open conversation on topics traditionally considered taboo. The company's approach is deeply customer-centric, focusing on understanding and meeting the evolving needs of its consumers through digital engagement and feedback mechanisms. Our company engages in the procurement of products through a job work arrangement as part of the operational strategy. This approach enables us to maintain flexibility in production, focus on our core competencies in design and innovation, and leverage the manufacturing expertise of the partners to ensure high-quality products. Specifically, the company has entered into an Exclusive Distribution Agreement with Guangzhou Zhongpai Electronics Co. Ltd. (China) dated December 08, 2023. Under this agreement, Guangzhou Zhongpai Electronics Co. Ltd. is responsible for the manufacturing of the designed products on a job work basis. As per financial performance, Macobs Technologies Limited has posted total income / net profits of Rs 6.02 Cr / Rs 0.39 Cr (FY22), Rs 14.83 Cr / Rs 2.04 Cr (FY23), Rs 20.75 Cr / Rs 2.21 Cr (FY24). So as per previous financials data, company has shown growth, but net cash flow of company is negative in FY23 & FY24. Company has posted an average EPS of Rs 3.71 and average RoNW of 55.35% for last three fiscals. Issue is priced at a P/BV of 5.49 as per NAV of 13.65 as on 31.03.24. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 188.90, 35.92 and 33.20 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. SKI Capital Services Limited is associated with this IPO and this is first IPO of this BRLM. As per financials, Macobs Technologies Limited has shown good growth, RoNW is 22.52% and P/E is respectively 188.90, 35.92 and 33.20 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but negative cash-flow raises doubts. Company is engaged in the business of male grooming industry, which is highly fragmented and competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Shivam Bhateja 
• 2 Dushyant Gandotra
• 3 Divya Gandotra