Niks Technologies Limited

Incorporated in 2014, NIKS Technology Limited is an IT solution service provider company. The company are committed to deliver high quality services like Digital Marketing, Software development, mobile app development, website development. Moreover, company provide classroom training and certification courses to students. The company have diversified product portfolio, which primarily caters to growing demand IT services sector.     Products and services  Digital Marketing : SEO, SEM, content marketing, content automation, e-commerce, social media marketing, social media optimization, email direct marketing and display advertising. Online & Offline courses : Ethical hacking & Cyber security, Embedded system & robotics, digital marketing, Internet of things (IoT), Machine Learning, Artificial Intelligence, Data science, PLC-SCADA, web development, software development, Programming language(C,C++,JAVA,PHP,PYTHON etc), server administrator,VLSI designing, Networking and software testing. Software Development : PHP Development, AJAX Development, MySQL Development, .NET Development, J2EE and SharePoint Development. Web Development : Website designing, custom web designing, PHP Design and application development, website hosting,Responsive web designing, SEO friendly web designing, E-commerce web design website redesigning, website support and maintenance and complete satisfactory solutions. On the financial performance front, Niks Technologies has reported turnover/net profits (loss) of Rs. 0.19 cr. / Rs. 0 cr. (FY18), Rs. 0.19 Cr. / Rs. 0 Cr. (FY19) and Rs. 0.19 Cr. / Rs. 0.08 Cr in FY20. For 10M of FY21, company has posted 0.27 Cr total income and 0.14 Cr net profit. So, for the last three years, company has posted zigzag results, average EPS of Rs. 5.15 and RoNW of 39.82%. The issue is priced at a P/BV of 6.10 based on its NAVs of Rs. 32.94 post issue.  As per FY20 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 90. If we annualise latest earnings of FY21 on fully diluted equity, than P/E is around 43. So issue looks very aggressively priced and there are no peers are per RHP document.  On BRLM's front Gretex corporate Services Pvt. Ltd. Limited has handled 11 IPOs in last three fiscals. From 10 IPOs, 1 is opened below price and remaining are opened above price with gain of 1-5%. As of now from 10 IPOs, 4 are trading below issue price and remaining are trading above issue price. (19.03.2021) For Niks Technologies Limited, results are zigzag, for last three fiscals RoNW is 30.87%, P/E is around 90 as per FY20 earnings and 43 for annualised FY21 earnings. So issue looks very aggressively priced. IT Services sector is growing at good rate in BHARAT and upcoming 5-10 years will be very good, but this sector is very highly competitive. Performance of BRLM is average. So we give AVOID rating to this SME IPO.

• 1 Mr. Manish Dixit