QVC Exports Limited is engaged in the business of dealing in ferro alloys, including but not limited to high carbon silico manganese, low carbon silico manganese, high carbon ferro manganese, high carbon ferro chrome and ferro silicon. They also engaged in the dealing in raw materials for manufacturing of steel. As on March 31, 2024, 82.95% of total revenue from operations was earned from the export operations. Further, as of January 31, 2024, they export the products to various countries, including but not limited to Taiwan, Japan, Bangaladesh, Vietnam, Thailand, Turkey, Aganistan, Korea, Italy, Ukrain, United Kingdome, Belgium, Oman, etc. They import manganese ore, manganese ore lumps from reputed miners and manufactures in Hong Kong and France. As on August 6, 2024 our Company has 15 employees on payroll. The Company has been steadily growing in the field of motion picture production since its inception. They have produced over 22 projects and have 6 films under production and another 7 under pre-production stages. They believe that they would be able to release the under-production project in the next fiscal. Further, the Company is also engaged in various other projects which are presently under the research & development stage. Further to the primary objectives of making films, the secondary objective is to amplify the films IP by cutting across various derivatives for the same, which could include, remakes, sequels and/or prequels (Chaar Sahibzaade :2, foreign language productions, stage plays, web-series, television productions, documentaries, electronic books (currently in production), comic books, print publications, games (Super V), merchandising, adaptations in different formats across different modes and media, spin-offs, etc. As per financial performance, QVC Exports Limited has posted total income / net profits of Rs 127.83 Cr / Rs 1.23 Cr (FY22), Rs 214.71 Cr / Rs 7.97 Cr (FY23) and Rs 454.63 Cr / Rs 6.05 Cr (FY24). So as per previous financials data, company has shown good growth. Company has posted an average EPS of Rs 4.74 and average RoNW of 12.39% for last three fiscals. Issue is priced at a P/BV of 1.66 as per NAV of 51.91 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 72.84, 39.02 and 14.86 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Khandwala Securities Limited is associated with this SME IPO and handled 3 SME IPOs in last 2 year. From last 3 IPOs, all opened above issue price or at par on the day of listing. As of now from last 3 IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 20.08.24 ) As per financials, QVC Exports Limited has shown good results, RoNW is 17.75% and P/E is respectively 72.84, 39.02 and 14.86 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced. Also issue expenses looks very high. Company is in business of dealing ferro alloy and steel manufacturing raw materials, which is highly competitive and fragmented segment. Performance of BRLM is average. 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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