Naman In-Store (India) Limited is one of the prominent display and retail furniture & fixture company with a broad spectrum of offerings and in-store solutions to various industries and retail stores. Further, they manufacture modular furniture for offices, beauty store, low-housing kitchens, educational institution as well as supermarket shelving solutions. The Company specializes in the design and execution of turnkey projects by bringing together under the same roof all of the resources necessary to meet the needs of any fit-out project. They manufacture in-store customised furniture and fixtures in wood, metal and plastic and in respect of kiosks, full shops, Countertop Units (CTU), Countertop Display Unit (CDU), Point of Sales Merchandising (POSM), etc. They operate on a B2B (Business-to-Business) model. The range of fixtures is designed to enhance the visual appeal and functionality of retail spaces. They have a diverse clientele spanning different geographies, industry verticals, and service offerings. As on September 30, 2023 they have served around 32 retail customers and their franchises and 4 industrial customers. They have a team of highly experienced professionals and skilled manpower. They have the manufacturing facilities located at Vasai, Maharashtra, having constructed area of approx. 1,41,687 Sq. Ft. The company has well established and high-tech manufacturing equipments and design facility to manufacture the various combination and size products as per the design and specification of clients. They are equipped with all facilities to execute all types of manufacturing activities such as design and prototyping, metal and wood fabrication, moulding, powder coating, cutting, printing, polishing & packaging, etc. Further they have 2 warehouses located in Kaman, Maharashtra and 1 at Bengaluru. They provide the services PAN India. Further, they have expanded the reach and presence by successfully procuring export order in USA to supply retail furniture and fixtures. Other business vertical includes sale of storage system, accessories, general furniture other than retail, metal powder scrap & other scrap, point of sale material, Job Work, Cost of metal enclosures which is other than retail & industrial work. As per financial performance, Naman In-Store (India) Limited has posted total income / net profits of Rs 13.41 Cr / Rs 0.05 Cr (FY21), Rs 51.09 Cr / Rs 0.21 Cr (FY22), Rs 149.94 Cr / Rs 3.82 Cr (FY23) and Rs 79.30 Cr / Rs 6.19 Cr (upto Q2 FY24). So as per previous financials data, company has shown very good growth, but sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 2.64 and average RoNW of 65.30% for last three fiscals. Issue is priced at a P/BV of 1.04 as per NAV of 85.96 as on 30.09.2023. 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 442.82, 24.59 and 7.58 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, GYR Capital Advisors Private Limited is associated with this SME IPO and handled 22 SME IPOs in last 3 year. From last 22 SME 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 22 SME IPOs, four are trading below issue price and remaining opened above or at par issue price. ( As on 18.03.24 ) As per financials, Naman In-Store (India) Limited has shown good results, RoNW is 65.30% and P/E is respectively 442.82, 24.59 and 7.58 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit just before IPO is very surprising. Company is in business of manufacturing modular furniture, which is highly competitive and fragmented 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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