Started in 2015, Salebhai Internet Limited is an Indian e-commerce portal that enables people living away from home order a range of specialties directly from their hometowns. It is also a one-stop solution for those who want to discover regional products from across India. People can pick from a wide variety of delicious consumable items like sweets, namkeen, chocolates, bakery, spices, dry fruits, beverages, and pickles. Salebhai also offers other products such as handicrafts, paintings, puja items, handloom goods, and herbal & wellness items. Salebhai, the E-commerce marketplace focuses on requirements of over 17 Diaspora communities living in big Indian cities as well as those who live abroad. With 8500 products sourced from over 100 cities and 300 select vendors, the company provides people with an opportunity to buy products in various categories from sellers across India as well as discover new items from different communities and cultures. Salebhai.com plans to further deepen its offerings to customers by penetrating into smaller towns for sourcing, will widen the offering by adding new categories which are missed by people. Company has 22% of its buyers who have ordered at least twice from the website, and 19% buyers with more than five orders, as of March 2017. Company has a team of 31 professionals with expertise in IT, marketing, content development, innovation, disruptive thinking, channel management, logistics, and customer support on its payroll. As per financial performance, company has posted total income/net profits of Rs. 0.04 cr. / Rs. - (1.11) cr. (FY16), Rs. 0.46 cr. / Rs. - (2.88) cr. (FY17) and Rs. 1.13 cr. / Rs. - (1.60) cr. (upto 31.01.18 FY18). Company's financial not looks any impressive and it has been incurring losses for all these years. For last two fiscals, it has posted an average EPS of Rs - (416.14) and an average RoNW of - (148.31)%. Issue is priced at P/BV of 5.56 based on its NAV of 18.88 as on 31.03.18. As earnings are negative, so it P/E is also negative. As per prospectus, it has shown Infibeam Incorporation Limited as its listed peer, but it can't be compared strictly. On BRLM's front, for Monarch Networth Capital Limited this is the 10th IPO and from last 9 IPOs, 2 opened below issue price, 3 at par and other listed with 1% to 20% premium on the day of listing. As of now, from last 9 IPOs, 7 are trading below issue price and remaining above issue price. ( As on 23.07.18 ) As per financials, company's performance is not good, RoNw is negative for all these years since inception and issue is very aggressively priced as per latest earnings. Performance of BRLM is also not good. So we give AVOID rating to this SME IPO as per current market situation.
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