Shashwat Furnishing Solutions Limited

Shashwat Furnishing Solutions Limited, started in March 2021, is engaged in processing of semi-finished furniture products into finished products and manufacturing through job work of furniture and handicraft items. The company specialize in developing a qualitative range of Industrial Furniture and Restaurant and Cafe Furniture, Garden and Outdoor Furniture Vintage Furniture, Mirror Frames, Wall clocks and various other decoration & handicrafts objects.  Shashwat Furnishing Solutions Limited acquired a sole proprietorship business M/s Handicrafts Village in 2021. The Company operates from its registered office situated at 121, Mahaveer Nagar, Jain Colony, Jodhpur - 342001, Rajasthan, India, along with warehouse at Plot No 18-19, Moti Nagar, Sangariya, Khasra Number 184, Jodhpur – 342013, Rajasthan, India and processing unit at H-258, Boranada industrial park, Boranada, Jodhpur- 342012, Rajasthan, India. As per financial performance, SFSL has posted total income/net profits of Rs 1.23 Cr / Rs 0.16 Cr (11M FY22). So company has shown very limited financial data. Company has posted EPS of Rs 0.77 and RoNW of 9.06% for last three fiscals. Issue is priced at a P/B of 3.83 as per NAV of Rs 11.74 post issue. As per annualised FY22 earnings P/E is 53.50. As per RHP, there are no listed peers.     On BRLM's front, Beeline Broking Limited associated with this SME IPO and handled 13 IPOs in last 4 years. From last 10 IPOs, three opened below issue price and remaining above issue price or at par. As of now from last 10 IPOs, four are trading below and remaining are trading above issue price or at par. ( As on 20.04.22 ) As per financials SFSL, has given very limited data, RoNW is 9.06% and P/E is 53.50 as per annualised FY22 earnings, which looks aggressively priced. The furniture and handicraft sector is highly competitive and there is nothing special with this company. Performance of BRLM is average post listing. So we are giving AVOID rating to this IPO.

• 1 Mr. Hitesh Karnawat