Omnipotent Industries Limited

Omnipotent Industries is primarily engaged in the business of supplying bulk and packed bitumen as well as other bituminous products. The company either directly imports these products or buys from third-party importers and sells them to their various distributors as well as corporates. The company's products include bitumen 60/70 & 80/100, bitumen VG10, VG30, VG 40; bitumen emulsion, blown bitumen, micro surfacing bitumen, and modified bitumen CRMB, PMB, NRMB. The company is also engaged in consultancy services of setting up of plants for Bitumen & Bituminous products. The company provides end-to-end solutions from identification of land, plant & machinery to imparting training & making policy with staff on marketing & quality testing. The company has relationships with various importers, manufacturers, transporters, warehousing & bulk storage entities which gives them a cost advantage due to bulk purchase as well as sharing of logistics costs.The company is in the process of shifting its plant at Gandhidham, Kutch, Gujarat, which will be managed by a third-party operator. On the financial performance front, Omnipotent Industries Limited reported turnover/net profits (loss) of Rs. 30.97 cr./ 0.01 Cr. (FY19), Rs 50.17 Cr. / Rs. 0.37 Cr. (FY20), Rs. 100.85 Cr. / 1.39 Cr (FY21) and Rs 65.83 Cr / Rs 64.37 Cr (4M FY22). So Company has shown exceptional growth in sales and net profit. For the last three years, company has posted average EPS of Rs. 4.69 and RoNW of 67.36%. The issue is priced at a P/BV of 1.61 based on its NAV of Rs. 39.21 post issue. As per FY21 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 27 and if . So issue looks aggressively priced. Comparison between listed peers in shown above table, but it can't be compared apple to apple basic On BRLM's front, Inventure Merchant Banker Services Private Limited associated with this SME IPO and handled 4 IPOs in last 3 years. From last 4 IPOs, two opened below issue price and remaining above issue price or at par. As of now from 4 IPOs, three are trading below and remaining is trading above issue price or at par As on (11.11.21 ) For Omnipotent Industries Limited financials are good, RoNW is 76.59% and P/E is around 27 for FY21 earnings. So issue looks fully priced with very high growth. Performance of BRLM is poor. So we give NEUTRAL rating to this SME IPO.

• 1 Punit K. Popat