Omfurn India Limited is manufacturer and supplier of Pre-Finished Wooden Doors and Modular Furniture in India. They have been in business since November 13, 1997, which gives them a quarter-century of experience in this industry. They create a wide range of wooden doors and furniture for Modular Kitchens, Wardrobes, Vanities and Modern Office furniture through customized, system-based, or turnkey projects PAN India, got listed in NSE the year 2017. The manufacturing factory in Umbergaon has a total area of 1,61,460 sq. ft. to increase manufacturing capacity and began manufacturing of furniture for premium hotels. The factory is equipped with the latest CNC woodworking machine from Germany and Italy. They also have an in-house design facility that provides complete furniture solutions, keeping in mind constant evolutions in international designs. They maintain the quality standards and have obtained certifications like ISO 9001, 14001, and 45001 under the strict certification rules. They believe the infrastructure is designed to manufacture high-quality furniture products efficiently and effectively. As per financial performance, Omfurn India Limited has posted total income / net profits of Rs 21.84 Cr / Rs (0.99) Cr (FY21), Rs 32.30 Cr / Rs 0.60 Cr (FY22), Rs 71.08 Cr / Rs 4.15 Cr (FY23) and Rs 44.75 Cr / Rs 2.89 Cr (upto Q2 FY24). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Also trade receivables is around 27% of FY23 total income. Company has posted an average EPS of Rs 2.58 and average RoNW of 8.19% for last three fiscals. Issue is priced at a P/BV of 1.59 as per NAV of 47.25 post issue. 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 147.67, 21.28 and 15.27 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Gretex Corporate Services Limited is associated with this SME IPO and handled 22 SME IPOs in last 3 year. From last 10 SME IPOs, two opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 SME IPOs, three are trading below issue price and remaining opened above or at par issue price. ( As on 18.03.24 ) As per financials, Omfurn India Limited has shown good results, RoNW is 16.12% and P/E is respectively 147.67, 21.28 and 15.27 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit just before IPO is very surprising. Company is manufacturer and supplier of Pre-Finished Wooden Doors and Modular Furniture in India, 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.
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