Plada Infotech Services Limited

As per financial performance, Plada Infotech Services Limited has posted total income/net profits of Rs 44.60 Cr / Rs 0.65 Cr (FY21), Rs 48.87 Cr / Rs 1.09 Cr (FY22) and Rs 62.75 Cr / Rs 2.33 Cr (FY23), So company has shown good growth, but sudden rise in bottom-line before IPO is very surprising. Company has posted an average EPS of Rs 2.75/-  and average RoNW of 25.28% for last three fiscals.  Issue is priced at a P/BV of 3.82 as per NAV of Rs 12.55/- as on 31.03.23. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 37.55 and as per FY23 earnings P/E  is 17.60. As per RHP, comparison between peers is shown in above table. On BRLM's front, Indorient Financial Services Limited is associated with this SME IPO and handled 2 SME IPOs in last 2 years. From last 2 IPO, one opened  below issue price and remaining opened at par or above issue price on the listing day. As of now, from last 2 SME IPOs, one is trading below issue price and remaining is trading above issue price. ( As on 29.09.23 ) As per financials, Plada Infotech Services Limited has shown average results, RoNW is 31.07% and P/E is respectively 37.55 and 17.60 as per FY22 and FY23 earnings. So, issue looks fully priced. Also sudden rise in net profit and higher value of issue expenses are very surprising. Company is in business of BPO service provider with having Pan India presence, which is highly fragmented and competitive segment. Performance of BRLM is average. So we are giving SUBSCRIBE rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Shailesh Kumar Damani
• 2  Anil Mahendra Kotak