SHINE FASHIONS INDIA LTD

Shine Fashions (India) Limited, started in 2019 and based in Mumbai - Maharashtra, is primarily engaged in importing, supplying and trading of non-woven interlining fabrics, woven fusible interlinings and microdot fusible interlinings. The interlinings produced are indifferent sizes, to cater diverse customers specifications. They are offering high grade quality and fine finish products to the customers. They provide bulk of products to the customers in the stipulated time frame and as per their choice. Company's infrastructure spans a large area and segregated into various departments. The department or units includes quality control, testing, packaging and many more. They have hired good team for carrying out business activities and handling each department. Moreover, the infrastructure is equipped with various equipment and other necessary things. They stringently test the products before their delivery to the clients to ensure their correctness. The products are used in various industries and companies for their fine finish. They offer the products to the prestigious customers in white, off-white, black, and charcoal. The product portfolio includes Hot Web Adhesive, Woven Stretch Interlining, Cap Interlining, Tricot, Non-Woven Interlining, Cotton Fusible Interlining, and Trafetta. On the financial performance front, Shine Fashions (India) Limited has reported turnover/net profits (loss) of Rs. 7.96 cr. / Rs. 0.92 cr. (FY20). For upto 31.05.20 of FY21, company has posted 0.02 Cr total income and (0.03) Cr net loss. For the last year, company has posted EPS of Rs. 3.45 and RoNW of 10.37%. The issue is priced at a P/BV of 1.17 based on its NAVs of Rs. 34.23 post issue. As per FY20 earnings issue is priced at P/E of 16. So as per FY20 earnings issue looks fully priced. Comparison between listed peers are shown in above table. On BRLM's front Shreni Shares Private Limited has handled 3 IPOs in last three fiscals. Out of last 3 listing, all opened with premiums ranging from 0% to 2% on the day of listings. As of now from last 3 IPOs, all are trading above issue price. ( As on 21.10.2020 ) Company is very new and issue is priced at P/E of around 16 as per FY20 earnings, which is fully priced in current scenario. Also company had posted losses for first two months of FY21. Currently  Performance of BRLM is average. So we give AVOID rating to this SME IPO.

• 1 MR. ANISH ANIL MEHTA
• 2 MR. ANIL ZAVERCHAND MEHTA