Rosmerta Digital Services Limited, a subsidiary of Rosmerta Technologies Limited ('RTL'), has been engaged in providing digitally enabled services and digitally enabled channel sales of automotive component & accessories. The company initially offered vehicle registration services to Original Equipment Manufacturers (OEMs) and has since diversified into a comprehensive range of services, including garage services, last-mile delivery service, selling of automotive components and accessories, etc. Rosmerta Digital Services Limited operates in two main segments: A) Digitally Enabled Services: Company provides digitally enabled vehicle registration services, last-mile delivery and garage services to the customers. They provide Vehicle Ownership Experience which includes services such as vehicle registration services, transfer of ownership, State Transport Authority approvals, Fame and State subsidy assistance, and other Regional Transport Office related support. The services are offered to OEMs or companies dealing in the sale of vehicles like Cars24. Company's in-house platform, URJA, is pivotal in optimizing these complex workflows, providing seamless integration and efficient management of services nationwide. This segment caters to the B2B customers. Further, they also provide Last Mile Service Delivery which includes offerings like HSRP Last Mile Enablement (Delivery of HSRPs to dealerships or customer's home). B) Digital Enabled Channel Sales: They have entered into the automotive component and accessories market, bolstered by a robust network of over 150 active channel partners, in 2023. This segment focuses on the sale of automotive components and accessories to retailers and garages. Additionally, the wide-reaching network of delivery agents ensures prompt and reliable delivery of orders, enhancing the overall efficiency and customer satisfaction. The company has a team of over 505 feet (as on September 30, 2024) with pan-India presence and domain expertise. Rosmerta Digital holds a significant share of Indian Electric Two Wheeler vehicle registrations, including with OLA Electric, and has recently partnered with Royal Enfield for their direct-to-consumer vehicle sales registrations. Additionally, it commands a significant market share in HSRP last-mile enablement. Company's inhouse app namely, MyRaasta app supports garage partners by increasing footfall, facilitating the sale of spare parts and accessories. As per financial performance, Rosmerta Digital Services Limited has posted total income / net profits of Rs 2.03 Cr / Rs (0.03) Cr (FY22), Rs 29.79 Cr / Rs 1.61 Cr (FY23), Rs 84.19 Cr / Rs 10.62 Cr (FY24) and Rs 92.54 Cr / Rs 14.85 Cr (H1 FY25). So as per previous financials data, company has shown exponential growth. Company has posted an average EPS of Rs 1.66 and average RoNW of 77.16% for last three fiscals. Issue is priced at a P/BV of 2.92 as per NAV of 50.34 as on post issue. If we attribute latest earnings of FY23, FY24 and annualised FY25 on fully diluted equity post issue, then asking price is at a P/E of around 20.40, 19.72 and 15.08 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Expert Global Consultants Private Limited is associated with this SME IPO and handled 12 SME IPOs in last 3 years. From last 10 IPOs, all opened above issue price or at par on the day of listing. As of now from last 10 IPOs, three are trading below issue price and remaining are trading above issue price as on today. ( As on 05.11.24 ) As per financials, Rosmerta Digital Services Limited has shown exponential growth, RoNW is 86.51% and P/E is respectively 482, 73.86 and 26.3 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced, but the growth company has shown is sustainable or not, need to be watched. Company is engaged in providing digitally enabled services and digitally enabled channel sales of automotive component & accessories, which is highly competitive and fragmented business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment