P. E. Analytics Limited

P.E. Analytics Limited Company was incorporated on January 08, 2008 as a private limited company under the provisions of the erstwhile Companies Act, 1956 with the Registrar of Companies, New Delhi in the name and style of P.E. Analytics Private Limited.The Company is engaged in providing proprietary Real Estate Business Intelligence and Analytics platform on B2B business model to various users such as Developers, construction industry, Investors, Banks, Housing finance companies, Equity research firms, real estate PE funds, REIT’s, financial institutions, Mortgage Insurers, HNIs, Lenders and Investors in real estate.  Company's principal business lines are characterised by their market-leading positions, high barriers to entry, PAN India footprint and potential for long-term growth. In order to capitalize on the opportunities available to us and to drive long-term value.The company owns and operates PropEquity which is an online subscription-based real estate data and analytics platform covering over 1,36,153 projects of 42,231 developers across over 44 cities in India with 13+years of catalog data.. Company's proprietary database, covers pan India footprint across 44 cities, real estate data covering more than data 180 points over 13 years and over 156 months on month data base. They have coverage of over 42,000 developers, over 1,36,000 projects in India and over 97,00,000 units. While the transparency of the Real estate markets and availability of information varies greatly by cities and markets, the team at P.E. Analytics works hard to capture all relevant information possible As per financial performance, P.E. Analytics Limited has posted total income/net profits of Rs 16.13 Cr / Rs 3.47 Cr (FY19), Rs 17.24 Cr / Rs 1.17 Cr (FY20), Rs 19.75 Cr / Rs 6.92 Cr (FY21) and Rs 12.15 Cr / Rs 4.10 Cr (H1FY22). So company has shown inconsistent results over last couple of years and sudden rise in profit raises concerns. Company has posted an average EPS of Rs 1,383.53 and average RoNW of 16.79% for last three fiscals. Issue is priced at a P/B of 2.32 as per NAV of Rs 49.12 post issue. As per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 17.26 and as per annualised FY22 earnings P/E is 14.55 . As per RHP Comparison between listed peers are shown in above table.    On BRLM's front, Sarthi Capital Advisors Private Limited associated with this SME IPO and handled 44 IPOs in last 3 years. From last 10 IPOs, two opened below issue price and remaining above issue price or at par. As of now from last 10 IPOs, six are trading below and remaining are trading above issue price or at par. ( As on 22.03.22 ) As per financials, P.E. Analytics has shown inconsistent results, RoNW is 20.84% and P/E is respectively 17 and 15 as per FY21 and annualised FY22 earnings, which looks fairly priced, but sudden rise in profit in IPO year raises concerns and if company can maintain same margins in future or not need to be watched. Performance of BRLM is poor post listing. So we are giving NEUTRAL rating to this IPO.

• 1 Mr. Samir Jasuja