Maxposure is a diverse new-age media and entertainment company offering 360-degree services across multiple distribution platforms. Specialising in customised solutions, the house of Maxposure stands on four pillars: Inflight Entertainment, Content Marketing, Technology and Advertising. They are one of the few marketing and communication companies to have successfully transitioned from print to digital media marketing segment and to have expanded its services across all verticals of aviation, travel, government and hospitality industries. The Company through its long-standing experience and award-winning services has been able to diversify its offerings to include a wide spectrum of in-flight experiences, ranging from curated entertainment on IFE systems, on-board communication through hi-tech patented solutions, innovative inflight magazines, sampling on board, and strategic ambient advertising. Moreover, the Company also offers strategic and innovative advertisement platforms to an advertiser to target a flyer at every step of the journey starting from pre-boarding, on-board, and post-boarding. Generally, in order to stream content on-board, the airplane needs to have an in-built entertainment system, in which content can be fed and streamed. However, in order to cater to low-budget airlines, the Company has devised a hardware solution, called ‘AeroHub’, through which content can be streamed wirelessly on the personal devises of the passengers in a cost effective manner. The innovative and diverse service portfolio and result oriented strategies have aided in curating an industry-wide client selection across various geographies. The end-to-end solutions and integrated service offerings has enabled us in successfully inculcating a horizontal marketing approach in the business operations. The consistent efforts and specialised services have helped in achieving a mix of private and government clientele spread across inter alia, tourism, automobile, hospitality, aviation, lifestyle, fashion, real estate and banking industries. In additional to multiple industries, they offer the services across multiple geographies, as well. To reach a wider global audience, they offer the content services in over 21 foreign and regional languages, including German, Russian, Arabic, Portuguese, Japanese, Chinese, French, Tamil, Marathi, Gujarati, Malayalam, Odia, etc. Working across multiple platforms, they provide content development, curation, moderation, translation and transcreation services. They are a content and digital partner for several government department and entities, and also provide creative solutions to major corporates across different industries like aviation, automobile, tourism, hospitality, retail & banking. The Company has a vast sales network pan India and has also established offices in Delhi, Mumbai, Bengaluru and Kolkata. For the digital projects they also have employees, hired locally, who are stationed in offices of the clients, in Bhopal and Chennai. The local talent understands the regional insights and sentiments and results in offering tailored services to the clients. Through the strategically located offices and teams in four major cities in India, they cover almost the entire country and understand the nuances of Indian market trends and the Indian consumer. They have also successfully launched and managed projects outside of India, especially in the Indian subcontinent and the Middle East, such as, Gulf Air (Kingdom of Bahrain), Air Arabia (Sharjah), VFS (UAE), Jazeera Airways (Kuwait) to name a few. During the three months period ended September 30, 2023 and the Financials Year 2023, 2022 and 2021, the revenues earned from our domestic operations contributed Rs 1726.28 lakhs , Rs 2835.08 lakhs, Rs 2815.85 lakhs and Rs 1940.76 lakhs, respectively and revenues earned from the international operations contributed Rs 289.86 lakhs, Rs 343.84 lakhs, Rs 452.15 lakhs and Rs 75.09 lakhs, respectively. As per financial performance, Maxposure Limited has posted total income / net profits of Rs 22.47 Cr / Rs 0.36 Cr (FY21), Rs 33.21 Cr / Rs 0.35 Cr (FY22), Rs 33.56 Cr / Rs 4.41 Cr (FY23) and Rs 20.59 Cr / Rs 3.71 Cr (upto Q2 FY24). So as per previous financials data, company has shown average growth, but sudden rise in net profit just before IPO raises doubts. Also trade receivables are above 30% of FY23 revenue. Company has posted an average EPS of Rs 1.44 and average RoNW of 7.76% for last three fiscals. Issue is priced at a P/BV of 3.15 as per NAV of 10.48 as on 30.09.23. 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 214.41, 17.01 and 10.12 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, GYR Capital Advisors Private Limited is associated with this SME IPO and handled 20 SME IPOs in last 3 year. From last 19 IPOs, one 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, four are trading below issue price and remaining are trading above issue price. ( As on 09.01.24 ) As per financials, Maxposure Limited has shown average results, RoNW is 14.20% and P/E is respectively 214.41, 17.01 and 10.12 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. But sudden rise in net profit just before IPO raises doubts and also trade receivables are high. Company is in business of media and entertainment, which is highly competitive and unorganised 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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