Net Avenue Technologies Limited

As per financial performance, Net Avenue Technologies Limited has posted total income / net profits of Rs 14.47 Cr / Rs 0.23 Cr (FY21), Rs 32.76 Cr / Rs 2.61 (FY22), Rs 34.51 Cr / Rs 1.76 Cr (FY23) and Rs 7.83 Cr / Rs 0.94 Cr (upto Q1 FY24). So as per previous financials data, company has shown average results, but sudden rise in net profit in Q1 FY24, just before IPO is very surprising. Company has posted an average EPS of Rs 1.90 and average RoNW of 240.84% for last three fiscals. Issue is priced at a P/BV of 0.66 as per NAV of 27.39 as on 30.06.23. 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 14.77, 21.90 and 10.24 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Shreni Shares Private Limited is associated with this SME IPO and handled 23 SME IPOs in last 3 years. From last 10 IPOs, one opened below issue price and remaining opened above issue price or at par on the listing day. As of now from last 10 IPOs, all are trading above issue price. ( As on 24.11.23 ) As per financials, Net Avenue Technologies Limited has shown average result, RoNW is 75.53% and P/E is respectively 14.77, 21.90 and 10.24 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is in business of online digital direct-to-consumer business for Indian Ethnic wear and accessories, 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.

• 1 Mr. Rajesh Nahar
• 2 Mr. Ritesh Katariya