PKH Ventures Limited is in the business of Construction & Development, Hospitality and Management Services. They execute Civil Construction works for Third Party Developer projects and have been awarded with two Government Projects viz., Hydro Power Project, Nagpur Project and three Government Hotel Development Projects viz., Rajnagar Garhi Project, Pahadikhurd Project and Tara Resort Project, being executed through the Subsidiaries/SPVs/ the Company. The Civil Construction business is executed by the Subsidiary and construction arm, Garuda Construction. The Hospitality vertical is in the business of owning, managing and operating hotels, restaurants, QSRs, spas and sale of food products. They have concluded the development of the Delhi Police Headquarters in April 2021, which involved the construction of twin towers of seventeen storeys each, with a complete glass facade and steel bridge connecting the two towers. They are proposing to develop Forthcoming Development Projects, which include real estate development at Amritsar, Punjab; real estate redevelopment project at Dadar-Matunga, Mumbai; agro processing cluster at Jalore, Rajasthan; cold storage park/facilities at Indore, Madhya Pradesh; and a wellness centre & resort at Chiplun, Maharashtra. Company developed two hotels in Mumbai viz., Golden Chariot Vasai Hotel & Spa and Golden Chariot, The Boutique Hotel near Mumbai International Airport ('Mumbai Hotels') and has been owning, managing and operating the Mumbai Hotels since FY 2015. They expanded the Hospitality operations into the restaurant space in Mumbai city by opening restaurants in the year 2013 under the brand name Golden Chariot and Balaji. The Restaurant Casablanca at Sahara Star, Mumbai commenced operations in the year 2017. The QSR business under the brand name Zebra Crossing, Hardy's Burger and Mumbai Salsa were also launched in the year 2017. In November 2021, the Company extended its Hospitality offering by undertaking the management and operations of Juvana Resort and Spa, a luxury resort at Aamby Valley, Lonavala developed by Golden Chariot Retreats and Infra Private Limited, the Group Company. As per financial performance, PKH Ventures Limited has posted total income / net profits of Rs 169.00 Cr / Rs 14.10 Cr (FY20), Rs 264.66 Cr / Rs 51.63 Cr (FY21) and Rs 245.41 Cr / Rs 66.41 (FY22) and Rs 155.03 Cr / Rs 39.00 Cr (9MFY23). So as per previous financials data, company has shown average growth, but net profit increased significantly. Also company has provided only 9 month data for FY23. Company has posted an average EPS of Rs 5.24 and average RoNW of 12.38% for last three fiscals. Issue is priced at a P/BV of 2.66 as per NAV of 55.63 as on 31.12.2022. If we attribute latest earnings of FY22 on fully diluted equity post issue, then asking price is at a P/E of around 18.33 and as per annualized FY23 earnings P/E is around 23.41, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, IDBI Capital Markets & Securities Limited lead managers is associated with this IPO, and have handled around 2 IPOs in last two fiscals. one opened below issue price and remaining opened above issue price or at par on the day of listing. As of now, from last 2 IPOs, 1 are trading below issue price and remaining are trading above issue price or at par. ( As on 24.06.2023 ) As per financials, PKH Ventures Limited has shown average growth, RoNW is 13.28% and P/E is respectively 18.33 and 23.41 as per FY22 and annualized FY23 earnings, which looks fully priced. PAT margins of Company looks very good in given years. Company is in business of construction / development, hospitality & management services, etc which are highly competitive and fragmented. BRLM has handled very limited IPOs. So there is nothing special in this company. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions..
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