Rashi Peripherals Limited is among the leading national distribution partners for global technology brands in India for information and communications technology ('ICT') products in terms of revenues and distribution network in Fiscal 2023. They are also one of the fastest growing national distribution partners for global technology brands in India in terms of revenue growth between Fiscal 2021 and Fiscal 2023. The revenue from operations grew at a CAGR of 26.32% from Rs 59,250.48 million in Fiscal 2021 to Rs 94,542.79 million in Fiscal 2023 and were Rs 54,685.10 million in the six months ended September 30, 2023. They differentiate themselves by offering end-to-end services such as pre-sale activities, solutions design, technical support, marketing services, credit solutions and warranty management services. The pan-India distribution network comprises 50 branches that operate for sales and as service centers and 63 warehouses, as of September 30, 2023. Through the branches and warehouses, they are able to cover 680 locations in India, as of September 30, 2023. They were incorporated in 1989 and have more than 34 years of experience in distribution of ICT products in India. The Company commenced operations with manufacturing of peripherals. With the liberalization of the Indian IT sector in 1991, they transitioned to distribution of ICT products of global technology brands in India. They have been instrumental in facilitating the entry of a number of global technology brands and were among the select players that led the formalization of the fragmented and unorganized ICT products distribution in India. Over the years, they have continually expanded the operations and between Fiscal 2002 and the six months ended September 30, 2023, the Company distributed 311.89 million units (including shortages of certain items, and items given free, if any) of ICT products. As of September 30, 2023, they are a national distribution partner for 52 global technology brands. They are a national distribution partner of global technology brands in product categories such as personal computing, mobility, enterprise, embedded solutions, components, lifestyle, storage and memory devices, power and 226 accessories. They distribute products for global technology brands such as ASUS Global Pte. Ltd., Dell International Services India Private Limited, HP India Sales Private Limited, Lenovo India Private Limited, Logitech Asia Pacific Limited, NVIDIA Corporation, Intel Americas, Inc., Western Digital (UK) Limited, Schneider Electric IT business India Private Limited, Eaton Power Quality Private Limited, ECS Industrial Computer Co. Ltd., Belkin Asia Pacific Limited, TPV Technology India Pvt Ltd., LG Electronics India Private Limited, Toshiba Electronic Components Taiwan Corporation, and Harman International (India) Private Limited, among others. They work with global technology brands to offer market intelligence, channel engagement strategies, competitive benchmarking and assist in formulation of entry strategies into India for global technology brands that currently do not have or have limited presence in the country. They assist global technology brands in growing their market share in India through competitive analysis across product segments, geographies and customer categories. They also provide product portfolio planning assistance across price points, ensure availability of products through multiple channels and sales promotion strategies. In the experience, these activities have helped global technology brands to penetrate, grow and retain their market share in the Indian market. As per financial performance, Rashi Peripherals Limited has posted total income / net profits of Rs 5,931.74 Cr / Rs 136.35 Cr (FY21), Rs 9,321.92 Cr / Rs 182.51 Cr (FY22), Rs 9,468.95 Cr / Rs 123.34 Cr (FY23) and Rs 5,473.27 Cr / Rs 72.01 Cr (Q2 FY24). So as per previous financials data, company has shown good sales growth, but net profit is declining. Company has an average EPS of Rs 34.47 and average RoNW of 24.87% for last three fiscals. Issue is priced at a P/BV of 1.64 as per NAV of 189.94 as on 30.09.23. If we attribute latest earnings of FY22, FY23, TTM and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 11.23, 16.62, 16.01 and 14.23 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, two lead managers are associated with this IPO, and have handled around 102 IPOs in last three fiscals. JM Financial Limited : This is 47th Main Board IPO from this BRLM. From last 10 Main Board IPOs, two opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 Main Board IPOs, two are trading below issue price and remaining are trading above issue price.( As on 31.01.2024 ) ICICI Securities Limited : This is 57th Main Board IPO from this BRLM. From last 10 Main Board IPOs, two opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 Main Board IPOs, three are trading below issue price and remaining are trading above issue price.( As on 31.01.2024 ) As per financials, Rashi Peripherals Limited has shown good growth, RoNW is 17.60% and P/E is respectively 11.23, 16.62, 16.01 and 14.23 as per FY22, FY23, TTM and annualised FY24 earnings. So, issue looks fully priced, but declining trend in net profit indicates higher competition. Company is a national distribution partners for global technology brands in India for ICT products, which is highly competitive segment. So, we give "SUBSCRIBE FOR LISTING GAINS" rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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