Mehul Telecom Limited is in the business of operating a multi-brand mobile retail chain offering smartphones and other electronic products and accessories through a hybrid 'COCO' (Company Owned, Company Operated) and 'FOFO' (Franchisee Owned, Franchisee Operated) retail model. The retail portfolio comprises products from leading smart phone and phone accessory manufacturers viz., MI, Samsung, Vivo, Oppo, Realme, Nokia, OnePlus, Redmi, Nothing, Tecno, Intel, Infinix, Xiaomi and other popular Brands. In addition to handsets, they retail connected lifestyle products and peripherals such as Air Conditioners, Refrigerators, Washing Machines, Televisions, wearables, audio devices, and power solutions like speakers, smartwatch, ear phones, head phones, tablets, mobile covers, phone chargers, screen guards, power banks, phone warranty plans, fire sticks, car holder clamps, pen drive etc. of various brands. As on the date of RHP, they operate from total 80 stores across the state of Gujarat out of which 6 are COCO stores and 74 are FOFO stores. They have the Registered Office in Rajkot, Gujarat. The products are marketed across Gujarat and they have generated Rs 15,198.76 Lakhs, Rs 12,088.66 Lakhs, Rs 10,719.83 Lakhs and Rs 8,015.19 Lakhs, from the sales for the period ending on December 31, 2025, financial year ending 2025, 2024 and 2023 respectively. The Company derives its revenue from a single business segment, namely the sale of mobile phones, other electronic products, and mobile accessories, operated through both COCO and FOFO business models. a) Sales Through Company Operated Retail Retail Stores (COCO Model) : The Company operates a chain of Company Owned Company Operated retail stores across Gujarat, focusing on high-traffic locations to maximize customer engagement. As on the date of filing of RHP, they manage 6 stores where they showcase the range of mobile phones and accessories. Each store is fully operated and maintained by the Company, covering all operational aspects, including staffing, management, and strategic direction, to ensure consistency in service quality and brand experience across our retail footprint. b) Sales through Franchise Owned Franchise Operated Outlets (FOFO Model): As on the date of filing of this RHP, they distribute mobile phones and accessories through 74 Franchise Owned Franchise Operated outlets under the FOFO model. In this structure, the Company licenses its brand name to franchise partners in different cities. While each outlet operates independently under the ownership and management of the franchisee, it utilizes the brand, ensuring alignment with the brand identity and service standards across all locations. As per financial performance, Mehul Telecom Limited has posted total income / net profits of Rs 80.27 / 0.51 Cr (FY23), Rs 107.36 / Rs 2.19 Cr (FY24), Rs 115.47 Cr / 5.74 Cr (FY25) and Rs 152.02 Cr / 7.07 Cr (uptoQ3 FY26). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises concerns. Also net-cash flow is negative. Company has an average EPS of Rs 5.43 and average RoNW of 47.80% for last three fiscals. Issue is priced at a P/BV of 3.09 as per NAV of Rs 31.72/- as on 31.12.25 If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 46.67, 16.96 and 10.86 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Cumulative Capital Private Limited is associated with this IPOs, and has handled 5 IPOs in last three fiscal years. From last five IPOs, all opened above issue price or at par, on the day of listing. As of now, from last 5 IPOs, one is trading below issue price and remaining all are trading above issue price or at par. (as on 11.04.26 ) As per financials, Mehul Telecom Limited has shown good growth, RoNW is 35.31% and P/E is 46.67, 16.96 and 10.86 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced. But, sudden rise in net-profit just before IPO and negative cash-flow raises doubts. Company is in the business of operating a multi-brand mobile retail chain offering smartphones and other electronic products, which is highly competitive business segment. Performance of BRLM is good post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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