Radiowalla Network Limited is into the business of customer engagement services which includes in-store radio services (exclusive radio channel for a brand) on subscription model basis, corporate radio (private radio channels for employee engagement in organisation) and advertisement services which includes digital signage solution, content management services and point of purchase advertising to the clients. They exclusively cater to the business-to-business (B2B) sector. In the realm of In-Store Radio, they furnish audio services to diverse clients, including malls, retailers, and hospitals, addressing their background audio requirements. They offer background music services, which involve providing a selection of music to enhance the ambient atmosphere of various spaces. They deliver AI-driven playlists of continuously updated music. In the domain of Corporate Radio, they extend audio services to corporate clients, encompassing both musical and non-musical components. The music facet comprises of a specified background music to enhance the ambient atmosphere of the office places of the clients. The non-musical facet comprises internal communications, announcements, birthday wishes, significant company news, and any other information that the company intends to convey to its employees. The background music services aim to create a pleasant and customized auditory experience tailored to the specific needs and preferences of the clients and their respective environments. Under Audio Advertising, they offer programmatic Advertising which is data-driven approach to buying and placing digital advertisements in real-time. Instead of the traditional manual process of ad buying, where human negotiations and manual insertion orders are involved, programmatic advertising relies on algorithms and technology to automate the buying of ad inventory. It allows for precise targeting, efficient use of advertising budgets, and the ability to reach the right audience at the right time. Under Visual Advertising, they offer Digital out of Home Advertising (DOOH) and Static Branding Opportunities. Digital Out of Home Advertising (DOOH) represents a contemporary advertising approach wherein they deploy digital standees, video walls, LED displays, touch screen kiosks, and commercial-grade monitors for clients and overseeing the management of their content. This dynamic method ensures a modern and engaging visual experience for the audience. In Static Branding Opportunities, they create a platform for brand visibility and engagement, implementing strategies that involve direct interaction with the target audience. These activities aim to enhance brand recognition and generate valuable leads for the clients. Over the last few years, the company has brought in new innovative audio solutions for its clients and have expanded the base to other countries like UAE, Mexico, Sri Lanka and in Middle East as well. As per financial performance, Radiowalla Network Limited has posted total income / net profits of Rs 5.90 Cr / Rs 0.10 Cr (FY21), Rs 10.50 Cr / Rs 0.47 Cr (FY22), Rs 14.03 Cr / Rs 1.02 Cr (FY23) and Rs 8.72 Cr / Rs 1.14 Cr (upto 31.10.23 FY24). So as per previous financials data, company has shown very good growth. Company has posted an average EPS of Rs 16.25 and average RoNW of 74.27% for last three fiscals. Issue is priced at a P/BV of 2.19 as per NAV of 34.73 as on Post issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 113.97, 52.41 and 27.41 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Narnolia Financial Services Limited is associated with this SME IPO and handled 8 SME IPOs in last 1 year. From last 8 SME IPOs, all opened above issue price or at par on the day of listing. As of now from last 8 SME IPOs, two are trading below issue price and remaining trading above or at par issue price. ( As on 21.03.24 ) As per financials, Radiowalla Network Limited has shown good results, RoNW is 30.49% and P/E is respectively 113.97, 52.41 and 27.41 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is in business of customer engagement services. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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