Resourceful Automobile Limited is actively involved in the dealership of two-wheeler bike of Yamaha, operating under the showroom name 'Sawhney Automobile'. Specializing in the sales and servicing of motorcycles and scooters, with quality products and exceptional customer service, making it a trusted destination for motorcycle enthusiasts. Presently the company has two concept-driven showrooms with one workshop embeds. The Blue Square outlet situated at Dwarka, New Delhi showcase Yamaha's entire range of two-wheelers, apparels & accessories. Yamaha's Blue Square facilities are designed to define their legacy in global motorsports with 'Blue' characterizing their racing DNA and 'Square' defining an entry into the world of Yamaha. These exclusive outlets showcase the brand's racing DNA through a Yamaha Blue themed interior and a borderline surrounding the exterior of the outlet. Both of these new locations are 3S facilities offering end-to-end Sales, Service and Spares support. The hospital in Bharuch is an ultra-luxury hospital with 25 beds for in-patient treatment and is also equipped with diagnostic devices for performing test such as, 2D Echocardiography, Electrocardiography, Tread Mill Test, Holter monitoring, Ambulatory Blood Pressure Measurement, Stress test, Dobutamine Stress Echocardiography & high end Coronary care with life-saving equipment such as Intra-aortic Ballon Pump Machine, Biphasic Defibrillator, Ventilators, BIPAP machines, Syringe Pump, Volumetric Infusion Pumps and Multipara Monitoring Machines. They have capabilities to undertake complex intervention procedures using Cutter ballons for In-Stent blockages, Implanting Drug eluting Ballons in previously implanted stent, fractional flow reserve & rotablator technology for hard calcified blockages. The Satellite Hospital at Ankleshwar is a 15 bedded nursing home which act as a referral centre and offers non-surgical day-to-day treatment to the patients. The Satellite Hospital is also self-sustaining as they are strategically located to fulfil demand for basic tertiary care. As per financial performance, Resourceful Automobile Limited has posted total income / net profits of Rs 11.27 Cr / Rs 0.002 Cr (FY21), Rs 12.50 Cr / Rs 0.29 Cr (FY22), Rs 19.38 Cr / Rs 0.42 Cr (FY23) and Rs 17.24 Cr / Rs 1.52 Cr (upto Feb FY24). So as per previous financials data, company has shown normal sales growth, but sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 4.06 and average RoNW of 25.37% for last three fiscals. Issue is priced at a P/BV of 2.16 as per NAV of 54.12 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 108.16, 74.88 and 18.71 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Swastika Investmart Limited is associated with this SME IPO and handled 9 SME IPOs in last 3 years. From last 9 IPOs, one opened below issue price and remaining above or at par on the day of listing. As of now from last 9 IPOs, four are trading below issue price and remaining above issue price as of now. ( As on 20.08.24 ) As per financials, Resourceful Automobile Limited has shown average results, RoNW is 25.37% and P/E is respectively108.16, 74.88 and 18.71 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit just before IPO raises doubts. Company is engaged in the dealership of two-wheeler bike of Yamaha, which is highly fragmented and competitive business segment. Performance of BRLM is average. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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