Moxsh Overseas Educon Private Limited

Moxsh Overseas Educon Limited, started in 2012, is an Edu-Medi Tech company engaged in the business of offering diverse and cohesive learning solutions, counselling and mobility services to students aspiring to pursue medical studies (MBBS) in India or abroad under the brand 'MOKSH' ( 'Student Mobility Services'). Under the student mobility services, they also provide advisory to students for their medical career planning and execution. They are a digitally native, technology led business, providing online learning program (test preparation) for medical entrance examinations, NEET-UG and for medicos (i.e. medical aspirants or graduates of a medical school) to appear for medical licensing examination, such as USMLE, PLAB, DHA, NeXT, FMGE etc, under the brand 'MOKSH Academy' ( 'Healthcare Academy' ). Based in Mumbai, as of August 31, 2022 they have presence across 23 touch points in India, of which they have presence in 18 cities through franchisee arrangements and with registered and branch offices in 5 cities viz Mumbai, Pune, Delhi, Bhopal and Ahmedabad.  The Company present service offerings can be categorized into: Student Mobility• University Guidance• Application Support• University Placement• Travel Support• Post Arrival Services Healthcare Academy• NEET UG• FMGE• NeXT• USMLE Step 1• USMLE Step 2CK As on August 31, 2022, they have the total strength of 115 Employees. As per financial performance, Moxsh has posted total income/net profits of Rs 8.18 Cr / Rs 0.22 Cr (FY20), Rs 3.87 / Cr 0.04 Cr (FY21), Rs 10.09 Cr / Rs 1.11 Cr (FY22) and Rs 2.28 Cr / Rs 0.17 Cr (Q1FY23). So company has shown growth except pandemic year, but jump in net profit in pre IPO year is very surprising. Company has posted an average EPS of Rs 4.25 and average RoNW of 55.87% for last three fiscals. Issue is priced at a P/B of 2.76 as per NAV of Rs 55.49 post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 30.85 and as per annualised FY23 earnings P/E is 50.06. As per RHP, there is no listed peers. On BRLM's front, Fedex Securities Private Limited associated with this SME IPO and handled 12 SME IPOs in last 3 years. From last 10 IPO all opened above issue price or at par. As of now from last 10 IPOs, four are trading below and remaining are trading above issue price or at par. ( As on 19.12.22 ) As per financials, MOEL has shown growth, RoNW is 75.54% and P/E is respectively 30.85 and 50.06 as per FY22 and annualised FY23 earnings, which looks aggressively priced. Also very high issue expenses raises doubt along with sudden jump in net profit pre IPO year. Company is in field of MBBS Career Counselling and healthcare academy. This field is highly competitive with lot of local players. Performance of BRLM is average. So we are giving AVOID rating to this SME IPO.

• 1 Priti Dhananjay Shah.