Richa Info Systems Limited

Richa Info Systems Limited is engaged in the business of assembling innovative products and systems. The company acts as an integrator of multifaceted solutions of leading quality products like Interactive Flat Panel, Interactive Board, Digital Podium, Digital Kiosk, and CCTV Cameras. They provide wide choice of "Innovative Solutions", providing service to Government organizations across India through Government e Marketplace. The Company import raw material from China and assemble the semi finished products and install the requisite software as per the customers requirement. The Company continues to provide the Annual Maintenance services to the clients to whom they have supply the products. As per financial performance, Richa Info System Limited has posted total income/net profits of Rs 15.04 Cr / Rs 0.20 Cr (FY19), Rs 17.56 Cr / Rs 0.33 Cr (FY20), Rs 20.11 Cr / Rs 0.72 Cr (FY21) and Rs 4.09 Cr / Rs 0.18 Cr (FY22). So Company has shown average results over last couple of years. Company has posted an average EPS of Rs 4.18 and average RoNW of 51.16% for last three fiscals. Issue is priced at a P/B of 2.53 as per NAV of Rs 49.4 post issue. As Per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 42.07 and as per annualised FY22 earnings P/E is 41.67. As per RHP there are no listed peers.     On BRLM's front, Swastika Investment Limited associated with this SME IPO and has not handled any SME IPO in last 3 years. ( on 07.02.22 ) As per financials, Richa Info Systems Limited has shown average result, RoNW is 51.62% and P/E is respectively 42 and 41 as per FY21 and annualised FY22 earnings, which looks aggressively priced. So we are giving AVOID rating to this IPO.

• 1 Mr Tushar Dineshchandra Shah
• 2 Mrs Hemaben Tushar Shah