Picturepost Studios Limited (PPSL) is a creative and innovative post-production Company specializing in film editing, Computer Generated Imagery ('CGI'), visual effects ('VFX'), video conversion, grading, film and Commercial mastering of channels and digital platforms. Picturepost Studios, with a team of professionals, offer a wide range of services to cater to the diverse needs of the entertainment industry. They are one of the visual effects Company covering the entire spectrum of post- production requirements ranging from digital intermediates and visual effects to online editorials and operates as a studio, specializing in Films, Web series and advertisements, With a strong focus on high-end colour grading, motion design, visual effects, and online editing. They have worked on extensive portfolio of many Web series, Commercials and Film, notable works which include projects like Half CA, Panchayat Season 3, Mera Bhai, TVS Jupiter, Park Avenue, Ponds Aloetac, Bade Miyan Chote Miyan and many more prestigious productions. The Company operates from approx. 3,300 sq. ft. office space in Khar and approx. 2,000 sq. ft. in Andheri, that offers VFX services along with other studio related services. Their service offerings have increased significantly, and they have continued to augment the customer base over the years and, as at March 31, 2024, they have served 265 Customers. As on April 30, 2024, they have employed 105 employees in various departments. As per financial performance, Picturepost Studios Limited has posted total income / net profits of Rs 0.29 Cr / Rs 0.21 Cr (FY22), Rs 10.85 Cr / Rs 0.86 Cr (FY23) and Rs 26.54 Cr / Rs 4.28 Cr (FY24). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 1.02 and average RoNW of 55.64% for last three fiscals. Issue is priced at a P/BV of 7.36 as per NAV of 3.26 as on 31.03.24. 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 324.20, 117.26 and 20.47 respectively, which looks fully priced. As per RHP, there is no listed peers. On BRLM's front, Shreni Shares Limited is associated with this SME IPO and handled 31 IPOs in last 3 years. From last 10 IPOs, all opened above issue price or at par on the day of listing. As of now from last 10 IPOs, one is trading below issue price. ( As on 31.07.24 ) As per financials, Picturepost Studios Limited has shown good growth, RoNW is 55.64% and P/E is respectively 324.20, 117.26 and 20.47 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit just before IPO raises doubts. Company is engaged in post-production film editing, Computer Generated Imagery ('CGI'), visual effects ('VFX'), video conversion, etc which is highly fragmented and competitive business segment. Performance of BRLM is good. So, we give "SUBSCRIBE FOR LISTING GAINS" rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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