Sheetal Universal Limited

As per financial performance, Sheetal Universal Limited has posted total income / net profits of Rs 38.83 Cr / Rs 0.25 Cr (FY21), Rs 39.83 Cr / Rs 0.28 (FY22), Rs 131.65 Cr / Rs 1.98 Cr (FY23) and Rs 58.26 Cr / Rs 1.87 Cr (31.08.23 FY24). So as per previous financials data, company has shown sudden rise in sales and profits. Company has posted an average EPS of Rs 1.46 and average RoNW of 30.63% for last three fiscals. Issue is priced at a P/BV of 2.34 as per NAV of 29.91 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 283.36, 40.34 and 17.81 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Beeline Capital Advisors Private Limited is associated with this SME IPO and handled 23 SME IPOs in last 2 years. From last 10 IPOs, all opened above issue price or at par on the listing day. As of now from last 10 IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 30.11.23 ) As per financials, Sheetal Universal Limited has shown average results, RoNW is 30.63% and P/E is respectively 283.36, 40.34 and 17.81 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is in business of sourcing, processing and supply in agriculture commodities, which is highly fragmented and competitive segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Hiren Vallabhbhai Patel
• 2 Mrs. Kajal Hiren Patel