Service Care Limited

As per financial performance, Service Care Limited has posted total income/net profits of Rs 108.12 Cr / Rs 1.36 Cr (FY20), Rs 89.33 Cr / Rs 0.23 Cr (FY21), Rs 115.02 Cr / Rs 1.74 Cr (FY22) and Rs 132.17 Cr / Rs 3.02 Cr (10M FY23), So company has shown average results. Company has posted an average EPS of Rs 1177.75/- and average RoNW of 20.73% for last three fiscals. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 44.15 and as per annualized FY23 earnings P/E is 21.23. As per RHP, comparison between listed peers are shown in above table. On BRLM's front, Swastika Investmart Limited is associated with this SME IPO and handled 5 SME IPOs in last 3 years, Last 5 IPOs, one opened below issue price and remaining opened above issue price on the listing day. As of now from last 5 IPOs, 3 are trading below issue price and remaining are trading above issue price. ( As on 12.07.23 ) As per financials, Service Care Limited has shown average results, RoNW is 27.59% and P/E is respectively 44.15 and 21.23 as per FY22 and annualized FY23 earnings, which looks aggressively priced. Also issue expenses are very high. Company is in business of providing services such as Workspace Administration Services and Workforce Administration Services across all business domains, which is a highly fragmented and competitive. Performance of BRLM is average. So we are giving AVOID rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mrs. Shany Jalal
• 2 Mr. Anil Kumar M
• 3 Mr. Amit Kumar Rakhecha