NET PIX SHORTS DIGITAL MEDIA LIMITED

Incorporated in 2019, Net Pix Shorts Digital Media Limited is a Mumbai-based technology entertainment company. The company prepares online short film content and publish it on the digital media channels and OTT platforms. It started content distribution through its channel "Net Pix Shorts" on the 'YouTube' portal. As of Sept 05, 2020, it has released 12 videos constituting 154.94 minutes of content and also has 8 short films. The company has 246,000 subscribers to its YouTube channel. Net Pix Shorts Digital Media also uploads its videos on other digital platforms like Hungama Play, Sony Liv, Mx Player, Shorts TV, and Hotstar. Recently, it has released its own music channel, "Net Pix Raw Music". In this, the company has uploaded 4 music videos aggregating to 15.70 minutes of content. On the financial performance front, Net Pix Shorts Digital Limited has reported turnover/net profits (loss) of Rs. 0.18 cr. / Rs. 0.02 cr. (FY20). For upto Q1 of FY21, company has posted 0.01 Cr total income and (0.02) Cr net loss. For the last year, company has posted EPS of Rs. 0.14 and RoNW of 1.40%. The issue is priced at a P/BV of 1.5 based on its NAVs of Rs. 20.02 post issue. As per FY20 earnings issue is priced at P/E of around 421. So as per FY20 earnings issue looks very aggressively priced. As per RHP, there is no listed peers. In Q1 of FY21, company has posted losses. On BRLM's front Aryaman Financial Service Limited has handled 23 IPOs in last three fiscals. Out of last 10 listing, 3 opened below issue price and remaining opened with premiums ranging from 0% to 2% on the day of listings. As of now from last 10 IPOs, 4 are trading below issue price and remaining are trading above issue price. ( As on 19.11.2020 ) Company is very new and issue is priced at P/E of around 420 as per FY20 earnings, which is very aggressively priced and company has posted losses in Q1 FY21. Performance of BRLM is average. So we give AVOID rating to this SME IPO.

• 1 Mr. Danish Zakaria Aghadi