Started in 2010, Saketh Exim Limited is Navi Mumbai based company which manufactures and fabricates various steel products which are meant for its application in Pipe Support Systems, HVAC Systems, Anti-vibration System and Equipments for Industrial, Commercial, Utility and OEM Installations. Company manufactures various engineering products, metal and base metal products like G. I. nuts, various types of bolts, clamps, hangers etc. Apart from these, company's Product Portfolio includes all types of bathroom pipes, fittings, bathroom accessories and sanitary wares. Company is even engaged in trading of textile products. They trade into fancy shirting and finish fabrics. Based on the orders received from the customers for the textile products, they order the exact requirement from the suppliers and make the final product available to these customers. Company has 3 manufacturing units located at Vasai. Company employs 39 employees as on March 31, 2018, consisting of accountants, trainees and other staff. Company exports its products to various geographies such as USA and various countries in Middle East serving to various companies of several industries. Company has a good customer base in India as well as internationally which includes international Companies like Technopro Middle East FZCO, Hamat Alezz Trading Est., Bin Dasmal General Trading Co LLC., Al Sayed Center A/C & Refrigeration Materials etc. For SEL, as on March 31, 2018, about 58.11% of total business comes from export sales of manufactured products, 1.24% from local sales of manufactured goods and balance comes from trading of textile products. Company is focusing on increasing growth in the export markets. Exports brings in better realisation of margins, prompt delivery due to faster and planned pace of projects, better payment terms and access to larger markets. This also reduces the risk of dependence on a single market and ensures that any slowdown in the market would not affect overall growth and performance of the Company. As per financial performance, company has posted total income/net profits of Rs. 33.21 cr. / Rs. 0.13 cr. (FY14), Rs. 37.49 cr. / Rs. 0.40 cr. (FY15), Rs. 46.72 cr. / Rs. 0.77 cr. (FY16), Rs. 51.40 cr. / Rs. 0.96 cr. (FY17) and Rs. 61.99 cr. / Rs. 1.07 cr. (FY18). From the financials, company has shown steady growth in all these years. For last three fiscals, it has posted an average EPS of Rs 2.87 and an average RoNW of 16.93%. Issue is priced at P/BV of 2.26 based on its NAV of 30.53 post issue. Also the renumeration given to promoter in FY18 was 47.00 lakhs with net profit of company 1.07 Cr. If we take latest earnings of FY18 and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 32. This valuation looks very aggressively prices. On BRLM's front, for Aryaman Financial Services limited this is the 37th IPO. From last 10 IPOs, 2 listed below issue price, 1 at par and remaining above issue price. As of now, from last 10 IPOs, 3 are trading below issue price and remaining above issue price. ( As on 26.07.18 ) As per financials, company's performance is consistent, RoNw is 16.93% for last three fiscals and issue is highly priced as per latest earnings. So we give AVOID rating to this SME IPO as per current market situation.
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