Started in 1995, Ridings Consulting Engineers India Ltd Company is engaged in Geospatial Services which includes Sub Surface Utility Engineering (SUE)Survey/ Ground-penetrating radar (GPR) Survey, Geographic Information Systems and Geospatial database development (GIS &Mapping Solution), Geospatial -Marketing consulting and planning, Training (GIS/ AutoCAD/ Arc Suite/ GPR/ EPL & DGPS/TotalStation), Geographic Information Systems for Utilities (Power, Water & Telecom) and Land surveying and Geospatial Data (Digital& large Scale Geospatial Data) etc. Basically Geographic Information Systems (GIS) applications including mapping of utilitiessuch as electrical network, telecom network, water supply and sewerage systems. We also provide services in the field such as GPR(Ground Penetrating Radar) / Sue Survey, Navigation Survey, Property Tax Surveys, Land Usage Surveys, Investigative Surveys(gather competition, market penetration data), Socio Economic Surveys, Geospatial Application Development and Services whichdirectly provide services to various private sector, Semi Government & Government entities in field of telecom, oil and gas, publicutilities etc. in India, Bahrain and other gulf countries. RCEIL is an ISO 9001:2015 certified company for providing training and services in the field of Topographical GroundSurvey, Cartography, Digitisation, Data Base, Software Development/Customisation, GIS, Development, all type of Engineering, Survey/design and Remote sensing and Digital Photogrammetry Applications. Ridings consists of team which provides professional services that are customised to make its principals' businesses a success in India as well as out of India. RCEIL has maintained long-standing relationship with its major customers such as Reliance Jio, Airtel, L&T, TCS, TomTom, HERE (formerly NavTeq), Reliance ADA, TATA, Jacobs Zate, Mott McDonald, various government municipalities and utility providing agencies etc. On financial performance front, RCEIL has posted turnover/net profits of Rs. 15.14 cr. / Rs. 0.74 cr. (FY13), Rs. 13.52 cr. / Rs. 1.17 cr. (FY14), Rs. 13.57 cr. / Rs. 1.07 cr. (FY15), Rs. 14.27 cr. / Rs. 0.52 cr. (FY16) and Rs. 16.90 cr. / Rs. 1.02 cr. (FY17). For H1 of FY18, it has earned net profit of Rs. 0.45 cr. on a turnover of Rs. 6.23 cr. As per financials, top-line remained constant, and bottom-line shown zig-zag effect. Issue is priced at a P/BV of 1.37 on the basis of NAV of Rs. 13.1 post issue. For last three fiscals, it has posted an average EPS of Rs. 1.0 and an average RoNW of 10.45%. If we annualise latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 25 against peers like Genesys International Corporation Limited and Rolta India Limited are trading at P/E of 39.9 and 3.3. So issue is fully priced as per latest earnings. On the merchant banker's front, this is the 12th IPO in last three fiscals. Out of last 10 listings, 1 opened at discount to offer price and remaining with a premium ranging from 4% to 20%. As per financials, growth in top-line and bottom-line are constants except some set backs, RoNW is 10.45% for last three fiscals and issue is fully priced as per latest earnings. So, we give NEUTRAL rating to this SME IPO.
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