Incorporated in 2017, Jodhpur based Priti International Limited is a company engaged in the manufacturing and exporting of Handicraft Products. It also deals in manufacturing of wooden, metal and textile-based furniture and handicrafts products, upcycling and recycling of various kinds of raw, unusable and waste metal and wooden articles. The Company's products range from solid wood and metal furniture articles, home furnishing items, creative wooden and metal articles for various uses, textile-based products like cushions, pillow covers, rugs and carpets, handbags, travel bags and backpacks, pet products, etc. Priti Lohiya, one of the promoters of the Company, commenced the business of handicraft products in the name and style M/s. Priti International, a proprietary concern in the year 2002 at facilities located at Basni and Boranada in Jodhpur, Rajasthan. The running business of M/s. Priti International was acquired by Priti International Limited on November 11, 2017. Priti International majorly caters to international markets. It exports products to wholesalers and retailers from countries such as Spain, Belgium, Holland, Netherlands, Turkey, England, China, Greece, Germany etc. The company also export its products to customers working on some specific projects e.g. newly constructed hotels, restaurants, bars & pubs, etc. The company has 45 employees on its payroll. It also employs contract labourers and temporary labourers as per requirement. As per financial performance, as a proprietary concern, it posted total income/net profits of Rs. 19.15 cr. / Rs. 0.64 cr. (FY13), Rs. 20.04 cr. / Rs. 0.76 cr. (FY14), Rs. 20.55 cr. / Rs. 3.39 cr. (FY15), Rs. 21.98 cr. / Rs. 0.94 cr. (FY16) and Rs. 20.33 cr. / Rs. 1.11 cr. (FY17). Thus while top line remained static for all these years, it has seen heavy ups and downs for bottom lines raising concern of sustainability going forward. For the period ended 10.11.17 it has earned net profit of Rs. 0.64 cr. on a turnover of Rs. 10.94 cr. Post conversion into a public limited company, for the period ended on 31.12.17 it has posted net profit of Rs. 0.16 cr. on a turnover of Rs. 3.24 cr. If we combine workings of period ended 10.11.17 and 31.12.17, then it has earned net profit of Rs. 0.80 cr. on a turnover of Rs. 14.18 cr. If we annualize this merged performance and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 18 plus. It has no listed peers to compare with. Issue is priced at a P/BV of 3.55 on the basis of its NAV of Rs. 21.13 as on 31.12.17 and at a P/BV of 2.10 on the basis of post issue NAV of Rs.35.68. Thus issue appears fully priced. On BRLM's front, for Pantomath Capital Advisors Private Limited, this is the 77th IPO and from last 10 IPOs, 2 listed at par and remaining with 2% to 20% premium on the day of listing. As of now, from recent 10 IPOs, 6 are trading below issue price and remaining above issue price. ( As on 05.06.18 ) As per financials, company's performance is almost static and issue is fully priced as per latest earnings. Performance of BRLM in recent past is poor and most IPOs which listed above issue price are trading below issue price. So we give NEUTRAL rating to this SME IPO as per current market situation.
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