Sameera Agro And Infra Limited is a multi-faceted infrastructure development and construction of Residential, Commercial spaces, Apartments, Townships, Multi storied complexes, Gated communities, Landscapes, Bridges, Flyovers, Subways, Alleys, Industrial parks, Laying of Water pipelines, Gas pipelines and other related works with the primary objective of delivering quality and value to the clients. Over the years, they have fortified the commitment by delivering massive and technically driven projects across India on tough terrains and in a tough industry environment. They have a breadth of experience encompassing the major sectors of the infrastructure industry. As a part of the other business activity from the year 2021, the Company has expanded its wings to processing, drying, sale, purchase, marketing, and distribution of agricultural commodities of pulses, cereals, grains, such as urad dal, moong dal, toor dal etc., - peeled and unpeeled, mung dal, black grans, green gram, mung beans, red lentils, yellow dal, split yellow peas etc. The company has established over a period of 2 years a strong customer network, suppliers' network and warehouses for storage of goods. The Company has got manufacturing and processing units on lease basis near Hyderabad which is accessible for all the three states viz., Telangana, Karnataka, and Maharashtra. The Company is also in the process of acquiring processing mills on lease basis at Guntur and Rajahmundry in Andhra Pradesh. During the past three financial years, the Company operates and total revenues accounts for 37.17% in Infrastructure industry and 62.83% in Agriculture industry and 100% revenues are accounted from Agriculture industry for the financial years 2021-22 and 2022-23. As per financial performance, Sameera Agro And Infra Limited has posted total income / net profits of Rs 80.09 Cr / Rs 1.22 Cr (FY21), Rs 105.34 Cr / Rs 2.74 Cr (FY22), Rs 138.82 Cr / Rs 10.04 Cr (FY23) and Rs 94.37 Cr / Rs 6.92 Cr (upto Q2 FY24). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO is very surprising. Company has posted an average EPS of Rs 8.61 and average RoNW of 40.40% for last three fiscals. Issue is priced at a P/BV of 3.55 as per NAV of 50.67 as on post issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 78.19, 21.36 and 15.49 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, First Overseas Capital Limited is associated with this SME IPO and handled 20 SME IPOs and 1 main board in last 3 years. From last 10 IPOs, one opened below issue price and remaining are opened above issue price or at par on the day of listing. As of now from last 10 IPOs, five are trading below issue price and remaining are trading above issue price. ( As on 18.12.23 ) As per financials, Sameera Agro And Infra Limited has shown good growth, RoNW is 53.46% and P/E is respectively 78.19, 21.35 and 15.49 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced, and maintaining such high margins in future will also be difficult. Also sudden jump in net-profit is very surprising. Company is in business of infrastructure development & agricultural commodities, which is highly competitive and fragmented segment. Performance of BRLM is average. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment