Paramatrix Technologies Limited

As per financial performance, Paramatrix Technologies Limited has posted total income / net profits of Rs 28.25 Cr / Rs 6.79 Cr (FY22), Rs 33.32 Cr / Rs 7.08 Cr (FY23) and Rs 28.60 Cr / Rs 4.13 Cr (FY24). So as per previous financials data, company has shown zigzag results. Company has posted an average EPS of Rs 6.35 and average RoNW of 19.31% for last three fiscals. Issue is priced at a P/BV of 2.09 as per NAV of 52.7 as on post issue. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 18.65, 17.89 and 30.64 respectively, which looks aggressively priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Inventure Merchant Banker Services Private Limited is associated with this SME IPO and handled 11 SME IPOs since 2021 - 22. From last 10 IPOs, two opened below issue price and remaining above issue price or at par on the day of listing. As of now from last 10 IPOs, eight are trading below issue price and remaining are trading above issue price as on today. ( As on 23.08.24 ) As per financials, Paramatrix Technologies Limited has shown incosistent results, RoNW is 13.69% and P/E is respectively 18.65, 17.89 and 30.64 as per FY22, FY23 and FY24 earnings. So, issue looks aggressively priced. Company is in business of  IT Software Services, which is highly competitive and fragmented segment. Performance of BRLM is poor post listing. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mukesh Keshubhai Thumar
• 2 Bhavna Mukesh Thumar