Nirmitee Robotics India Limited

Started in 2016, Nirmitee Robotics India Ltd makes robots using robotic technology to offer ozone sterilisation and HVAC duct cleaning services. It has customised robots that are controlled by machines to scrub, polish, scrap, remove dust, bacteria, and debris and to sanitise the duct for more months. The company has patented duct cleaning robots to do cleaning, inspection, and post-cleaning operations. These robots have an advanced controller mechanism along with a high-resolution camera. Nirmitee Robotics serves a wide range of industries such as convention centers, trains, hospitals, offices, and builds house sensitive equipment such as data centers. It is an ISO certified company to implement a quality management system and work across different regions. On the financial performance front, for the last three fiscals, NRIL has posted turnover/net profits of Rs. 0.06 cr. / Rs. 0.01 cr. (FY17), Rs. 0.70 cr. / Rs. 0.02 cr. (FY18) and Rs. 2.04 cr. / Rs. 0.21 cr. (FY19). For the first six months of FY20, it has earned a net profit of Rs. 0.03 cr. on a turnover of Rs. 1.00 cr. Superb performance in pre-IPO year raises concern. With such small operations, NRIL coming out with IPO in March 2020 with FY20 financial performance for the 1st half (i.e. six months period ended on 30.09.19) also raises concern. For the last three fiscals, NRIL has posted an average EPS of Rs. 4.70 and an average RoNW of 13.63%. The issue is priced at a P/BV of 1.05 based on its NAV of Rs. 175.61 as on 30.09.19 and at a P/BV of 3 based on post issue NAV of Rs. 61.72. If we annualise latest earnings and attribute it on fully diluted post issue equity then asking price is at a P/E of around 185 and as per FY19 earnings its priced at P/E of around 54, thus IPO appears exorbitantly priced. On BRLM's front for Aryaman Financial Services Limited, this is the 38th IPO in the last three fiscals (including the ongoing). Out of last ten listing, two opened at discount and the rest with premiums ranging from 0.03% to 2% on the day of listings. As of now from last 10 IPOs, 4 are trading below issue price and remaining above or near issue price. ( As on 29.09.2020 ) Company has shown average results and issue is priced at P/E of around 185 as per annualised FY20 earnings and around 54 as per FY19 earnings, which very aggressively priced in current scenario. Performance of BRLM is average. So we give AVOID rating to this SME IPO.

• 1 Mr. Jay Prakash Motghare
• 2 Mr. Kartik Eknath Shende
• 3 Mr. Rajesh Narendra Admane