Orient Technologies Limited

Orient Technologies Limited is an information technology (IT) solutions provider headquartered in Mumbai, Maharashtra incorporated in the year 1997. The business verticals of company are as follow: 1. IT Infrastructure: Products and solutions include Data Centre Solutions and End-User Computing2. IT Enabled Services (IteS): Services include Managed Services, Multi-Vendor Support Services, IT Facility Management Services, Network Operations Centre Services, Security Services, and Renewals; and3. Cloud and Data Management Services: Services include migration of workload from data centres to cloud. Company's business operations are, currently, concentrated in India and the revenues are predominantly generated from India, including from various multinational companies and transnational corporations. They operate out of their headquarters and corporate office situated in Mumbai, Maharashtra, with sales and services offices located across various cities in India such as Navi Mumbai and Pune in Maharashtra, Ahmedabad, Gujarat, New Delhi, Bengaluru, Karnataka and Chennai, Tamil Nadu. They also have a branch located in Singapore. Company have recently ventured into 'Device as a service (DaaS)'. Under DaaS they provide desktops, laptops, tablets, printers, scanners, smartphones, and servers, bundled with software, along with managed services on a 'pay-per-use' model i.e. on a subscription basis. The DaaS market in India is at a very nascent stage and is currently fragmented. Some leading public and private sector entities across diverse end-use industries such as BFSI, information technology, information technology enabled services, healthcare / pharmaceutical, are their customers. For example BFSI - Bluechip, Tradebulls, VJS Bank and VKS Bank, ITeS - Integreon, Government & PSUs - Coal India, Mazagon Dock, Healthcare and Pharmaceutical - ACG, Jyothy Labs & Others - D'Decor. As at June 30, 2024, company had an aggregate of 1,482 permanent employees. As per financial performance, Orient Technologies Limited has posted total income / net profits of Rs 469.12 Cr / Rs 33.49 Cr (FY22), Rs 542.01 Cr / 38.29 Cr (FY23) and Rs 606.86 Cr / Rs 41.45 Cr (FY24). So as per previous financials data, company has shown steady growth. Company has an average EPS of Rs 11.14 and average RoNW of 27.66% for last three fiscals. Issue is priced at a P/BV of 4.21 as per NAV of Rs 48.95/- as on 31.03.24. If we attribute latest earnings of FY22, FY23, and FY24, then asking price is at a P/E of around 25.61, 22.40, and 20.70 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, one lead manager is associated with this IPO, and have handled around 2 IPOs in last four fiscals. Elara Capital (India) Private Limited: This is 3rd IPO from this BRLM. From last 2 IPOs, all opened above issue price on the day of listing. As of now, from last 2 IPOs, all are trading above issue price. (As on 14.08.24) As per financials, Orient Technologies Limited has shown good results, RoNW is 23.64% and P/E is 25.61, 22.40 and 20.70 respectively as per FY22, FY23, and FY24 earnings. So, issue looks fully priced. Company is in business of information technology (IT) solutions provider, which is a very fragmented and competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Ajay Baliram Sawant
• 2  Umesh Navnitlal Shah
• 3 Ujwal Arvind Mhatre
• 4 Jayesh Manharlal Shah