Naturewings Holidays Limited

As per financial performance, Naturewings Holidays Limited has posted total income / net profits of Rs 4.18 Cr / Rs 0.20 Cr (FY22), Rs 11.76 Cr / Rs 0.65 Cr (FY23) and Rs 21.90 Cr / Rs 1.12 Cr (FY24). So as per previous financials data, company has shown good growth. Company has posted an average EPS of Rs 3.66 and average RoNW of 38.92% for last three fiscals. Issue is priced at a P/BV of 2.41 as per NAV of 30.66 as on post issue. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 117.58, 35.94 and 20.90 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Fedex Securities Private Limited is associated with this SME IPO and handled 31 SME IPOs and 1 main board IPO in last 4 years. From last 10 SME IPOs, all opened above issue price and from one main board IPO that opened above  issue price or at par on the day of listing. As of now from last 10 SME IPOs, five are trading below issue price and remaining are trading above issue price as on today and from one main board IPO that is trading above issue price as on today. ( As on 02.09.24 ) As per financials, Naturewings Holidays Limited has shown good growth, RoNW is 42.13% and P/E is respectively 117.58, 35.94 and 20.90 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but issue expenses looks high. Company offers specialized and curated holiday packages for leisure travelers visiting the Himalayan ranges, which is highly fragmented and competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Sandip Raha
• 2 Mousumi Raha