Nouritrans Exim Ltd

Started in 1995, Nouritrans Exim Ltd (NEL) is in the business of exports, imports and trading of commodity. They have global presence which covers various markets in USA, UK, Europe, South Africa and Middle East. The company has been accredited as an International Commodity Export-Import & trading company and having APEDA certificate. Its product portfolio covers various Agro based products and Scraps. Over the decades, NEL has emerged as a leading Import-Export & Trading Company with wide portfolio of International and Domestic customers. They have introduced "Al-Ayman" brand in the year 2009. Company's product portfolio covers various Agro based products and Scraps which is as follows:1. AL-AYMAN Basmati Rice2. AL-AYMAN Wheat Flour3. AL-AYMAN Sunflower Oil4. AL-AYMAN Mango Pulp5. AL-AYMAN Canned Vegetables On performance front, for last four fiscals NEL has posted turnover/net profits of Rs. 1.19 cr. / Rs. 0.005cr. (FY14), Rs. 4.18 cr. / Rs. 0.05 cr. (FY15), Rs. 6.35 cr. / Rs. 0.06 cr. (FY16) and Rs. 11.60 cr. / Rs. 0.30 cr. (FY17). Thus it has posted rising trends in top and bottom lines. FY 17 net profit includes other income of Rs. 0.12 cr. For last three fiscals it has posted an average EPS of Rs. 0.64 and average RoNW of 25.33% on the paid up equity capital of Rs. 1.51 crore which is at Rs. 4.06 crore now. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of around 60 plus. Thus pricing of the issue is very aggressive. As per prospectus details, NEL has no listed peers to compare with. As per financials, company's growth is good, RoNW is just 6.87% for FY 17 and issue is very highly priced. So we give AVOID rating to this SME IPO.

• 1 Mrs. Shaheen Vohra