One Point One Solutions Ltd

Started in 2008, One Point One Solutions Limited is Thane, Maharashtra based provider of Business Process Management Services. 1Point1 service ranges from Data management and Business Analytics, Integrated Telephony Management, Customer Relationship Management, Sales Management, Document Management, Payment Gateway Management, Order Booking Management and IVR Solutions Management. Company also offers Skill Development and Training Program. Company is mainly engaged in outsourcing services which includes Inbound and Outbound Call, Back Office/Transaction Processing, Data Management services and Business Analytics. Company provides these services in various industries including Telecommunication, BFSI, Travel, Manufacturing, E-commerce etc. List of clients includes Bharti Airtel, Videocon d2h, Baroda Pioneer Asset Management, Dish Infra Services, LIC Mutual Fund Asset Management, Shop CJ Network, Wonderchef Home Appliances etc. Company provides services to all its client‘s customers in 13 languages namely, English, Hindi, Kashmiri,Punjabi, Marathi, Gujarati, Assamese, Bengali, Oriya, Tamil, Telugu, Malayalam and Kanada from its delivery centers at Mumbai, Gurgaon, Indore and Bangalore. About the financial performance, OPO has posted total revenue/net profit of Rs. 64.06 cr. / Rs. 2.34 cr. (FY15), Rs. 84.17 cr. / Rs. 3.31 cr. (FY16) and Rs. 90.51 cr. / Rs. 4.62 cr. (FY17). For Q1 of current fiscal it has reported total revenue of Rs. 25.63 crore with a net profit of Rs. 1.19 crore. For last three fiscals on standalone basis it has posted an average EPS of Rs. 4.03 and average RoNW of 46.30% on an equity base of Rs. 1 crore. Issue is priced at a P/BV of 4.25 to Rs. 3.84 on its NAV as at 31.03.17 on standalone and on consolidated basis. Since March 2017 its equity has risen by nearly nine times and that will further rise to around 16.7 times post issue. If we annualize its latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 16 plus against industry average of around 21. Thus issue is fully priced. On merchant banker's front, this is 54th mandate from its stable in the past three years and last 10 listings marked openings at a premium of 0.01% to 20% on the day of listings. As per financials, company's growth is good, RoNW is 46.30% for last three fiscals on an equity base of Rs 1 crore and issue is fully priced as per latest earnings. Company is working in Business Process related services, which is very competitive, but it has good growth potential also, So, we give NEUTRAL rating to this SME IPO.

• 1 Mr. AKSHAY CHHABRA
• 2 TECH WORLDWIDE SUPPORT PRIVATE LIMITED