Ondoor Concepts Limited

As per financial performance, Ondoor Concepts Limited has posted total income/net profits of Rs 183.06 Cr / Rs (5.23) Cr (FY21), Rs 173.33 Cr / Rs (5.36) Cr (FY22), Rs 180.15 Cr / Rs 0.06 Cr (FY23) and Rs 70.25 Cr / Rs 0.55 Cr (Upto 31.08.23 FY24). So company has shown static results with losses in past, but sudden rise in net-profit just before IPO, is very surprising. Company has posted an average EPS of Rs 14.27/- and average RoNW of 16.89% for last three fiscals. Issue is priced at a P/BV of 1.30 as per NAV of Rs 159.91/- as on post issue. As per FY22, FY23 and annualised FY24 earnings on fully diluted equity post issue, asking price is at P/E of respectively around (21.88), 1,926.08 and 87.89. As per RHP, comparison between peers is shown in above table. On BRLM's front, First Overseas Capital Limited is associated with this SME IPO and handled 18 SME IPOs in last 3 years. From last 10 IPO, one opened below issue price and remaining opened at par or above issue price on the listing day. As of now from last 10 IPO, Four are trading below issue price and remaining are trading above issue price. ( As on 13.10.23 ) As per financials, Ondoor Concepts Limited has shown static results, RoNW is 25.51% and P/E is respectively (21.88), 1,926.08 and 14.61 as per FY22, FY23 and annualised FY24 earnings. So, issue looks aggressively priced. Also, sudden rise in net-profit and higher value of issue expenses are very surprising. Company is in e-commerce business (grocery & home essentials), which is highly fragmented and competitive segment. Performance of BRLM is good. So we are giving AVOID rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Narendra Singh Bapna
• 2  Pramod Ramdas Ingle
• 3  Vaishali Pramod Ingle
• 4  Swati Bapna
• 5  NSB BPO Solutions Private Limited