MRP AGRO LIMITED

Incorporated on April 2018, MRP Agro Limited, based at Tikamgarh Madhya Pradesh, is engaged in trading of food grains, fly-ash and coal including Import and Export of such products with a large base of ever growing consumers. The company has built a strong market and purchase such products domestically for supply to its consumers. The Company has trading network in urban and rural areas.The company trade in some of food grain items with brand name such as 'MRP'. The company is having the local mandi license for purchase of food grains via auction from local market of Tikamgarh, Madhya Pradesh. Also the Company is registered dealer with Department of Mines & Geology, Government of Jharkhand for Purchase of Mineral such as Coal. The Company purchases the food grains, fly-ash and coal from local market by way of auction in large quantity and further sale the Products after clearing the Quality check to the wholesalers. The company's business model is B2B (Business to Business Basis) as they deal in bulk trading of food grains, fly-ash and coal. On the financial performance front, MRP Agro Limited has reported turnover/net profits (loss) of Rs. 36.34 cr. / Rs. 0.18 cr. (FY19) and Rs. 18.73 cr. / Rs. 0.11cr. (FY20). For upto H1 of FY21, company has posted 8.57 Cr total income and 0.14 Cr net profit. For the last two years, company has posted average EPS of Rs. 2.88 and RoNW of 18.27%. The issue is priced at a P/BV of 1.65 based on its NAVs of Rs. 24.22 post issue. As per FY20 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 63. If we annualise latest earnings of FY21 on fully diluted equity, than P/E is around 42. So issue looks very aggressively priced. As per RHP, there is no listed peers. On BRLM's front Beeline Broking Limited has handled 6 IPOs in last three fiscals. Out of last 6 listing, all are opened above issue price on the day of listings. As of now from last 6 IPOs, 3 are trading below issue price and remaining above issue price. ( As on 04.02.2021 ) For MRP Agro Limited, Very limited financial data is available as company is very new and issue is priced at P/E of around 63 as per FY20 earnings, which is very aggressively priced. Also this business segment has very much competition. Performance of BRLM is average. So we give AVOID rating to this SME IPO.

• 1 Mr. Manish Kumar Jain
• 2 Mrs. Raksha Jain
• 3 Manish Kumar Jain HUF