Micropro Software Solutions Limited

As per financial performance, Micropro Software Solutions Limited has posted total income/net profits of Rs 13.92 Cr / Rs 1.81 Cr (FY21), Rs 17.55 Cr / Rs 3.71 Cr (FY22), Rs 22.17 Cr / Rs 8.21 Cr (FY23) and Rs 2.75 Cr / Rs 0.65 Cr (Upto 31.05.23 FY24). So company has shown good growth, but trade receivables are more than 50% that is very high. Company has posted an average EPS of Rs 3.97/- and average RoNW of 29.13% for last three fiscals. Issue is priced at a P/BV of 2.43 as per NAV of Rs 33.33/- as on post issue. As per FY22, FY23 and annualised FY24 earnings on fully diluted equity post issue, asking price is at P/E of respectively around 31.20, 14.09 and 29.36. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Swaraj Shares And Securities Private Limited is associated with this SME IPO and handled 1 SME IPOs in last 1 years. From last one IPO, all opened above issue price or at par on the listing day. As of now from last one IPO, all are trading above issue price. ( As on 31.10.23 ) As per financials, Micropro Software Solutions Limited has shown good results, RoNW is 35.93% and P/E is respectively 31.20, 14.09 and 29.36 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. But, higher trade receivables and issue expenses are big concern. Company is in business of IT related services, which is highly fragmented and competitive segment. So we are giving NEUTRAL rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Mr. Sanjay Yadavrao Mokashi
• 2  Mr. Hitesh Dhirajlal Parikh
• 3  Mr Prashant Renukadas Rajurkar
• 4  Mrs. Meenakshi Sanjay Mokashi
• 5  Mrs. Shefali Hitesh Parikh
• 6  Mrs. Swati Prashant Rajurkar