Riyaasat Lifestyle Limited operates as an ethnic wear company, offering a wide array of Indian ethnic wear along with fusion and Indo-Western styles. Their product categories for men include Sherwani, Kurta Pyjama, Jodhpuri, and Koti-sets, while the womenswear collection encompasses Sarees, Lehengas, and Gowns. A core part of their business model is customization—tailoring style, design, embroidery, and sizes to individual customer preferences. The company sells through exclusive brand outlets (EBOs) in offline high-street fashion, as well as an online channel via their website and online marketplaces using outright sales (OS) and pure-play marketplace (MP) models. The company caters directly to retail consumers in the Business-to-Consumer (B2C) segment while also steadily building its presence in the Business-to-Business (B2B) market. The brand focuses heavily on the wedding and festive wear segment, leveraging localized consumer preferences in the Western Indian region, specifically generating the vast majority of its sales from Gujarat and Maharashtra. Riyaasat operates workshop facilities located in Ahmedabad (Gujarat) and Malad West, Mumbai (Maharashtra), covering areas of approximately 1,200 sq. ft. and 800 sq. ft. respectively. The workshops are well-equipped with automatic and semi-automatic equipment like Jack sewing machines, garment steamers, and overlock machines to ensure high efficiency and precision in tailoring. The company also relies on third-party job workers to carry out various stages of the manufacturing process, such as cutting, embroidery, stitching, and finishing, to maintain operational flexibility and meet seasonal demand surges. As their manufacturing model utilizes third-party job workers and custom tailoring at workshops rather than automated heavy-industry production lines, traditional plant capacity utilization percentages are not applicable. As per financial performance, Riyaasat Lifestyle Limited has posted total income / net profits of Rs 20.94 / 1.32 Cr (FY23), Rs 23.34 / 4.08 Cr (FY24), Rs 25.19 / Rs 4.87 Cr (FY25) and Rs 28.13 Cr / 4.29 Cr (Upto 31.01.26 FY26). So as per previous financials data, the company has shown good growth, and the trade receivables to total sales ratio is well maintained at around 8.18%, 6.07%, and 13.45% for FY24, FY25 and FY26 respectively. Furthermore, unlike many peers, the operating cash flow is strictly positive for FY24 (Rs 0.61 Cr), FY25 (Rs 5.16 Cr) and FY26 (Rs 2.09 Cr). The company has a weighted average EPS of Rs 5.17 and a weighted average RoNW of 50.66% for the last three fiscals. The issue is priced at a P/BV of 4.90 as per the NAV of Rs 22.03/- as (31.01.26). If we attribute the latest earnings of FY24, FY25 and annualized FY26 on equity post-issue, then the asking price of Rs 66 is at a P/E of around 28.41, 23.85 and 22.53 respectively. As per RHP, there are no listed peers in the Indian market. On BRLM's front, Mark Corporate Advisors Private Limited is associated with this IPO, and has handled 5 IPOs in the past. From last 5 IPOs, one opened below issue price and remaining all opened above issue price or at par, on the day of listing. As of now, from the last 5 IPOs, three are trading below the issue price and the remaining three are trading above the issue price or at par. (as on 16.06.26) As per financials, Riyaasat Lifestyle Limited has shown good growth, RoNW is 37.15% (in FY25) and P/E is 28.41, 23.85 and 22.53 respectively as per FY24, FY25 and annualized FY26 earnings. So, the issue looks reasonably priced. The company maintains healthy trade receivables and positive operating cash flows, which provide operational comfort. The company is primarily engaged in the manufacturing, marketing, and sale of disposable paper tableware and packaging, operating in the B2B and B2C segments, which is a highly competitive business segment. While the performance of the BRLM is average, the extreme geographical concentration risk (100% reliance on Odisha) and historical compliance delays raise some operating doubts. So, we give a NEUTRAL rating for this IPO for investors with a high-risk appetite looking for long-term growth. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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