Shoora Designs Limited

As per financial performance Shoora Designs Limited has posted total income/net profits of Rs 0.16 Cr / Rs 0.03 Cr (FY22) and Rs 2.10 Cr / Rs 0.11 Cr (FY23), So company has shown good growth, but very limited financial data is available and sudden growth in net profit just before IPO raises doubts. Company has posted an average EPS of Rs 0.83/- and average RoNW of 19.24% for last three fiscals. Issue is priced at a P/BV of 1.99 as per NAV of Rs 24.13/- as on post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 184.45 and as per FY23 earnings P/E is 63.10. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Swaraj shares and securities private limited  is associated with this SME IPO and not handled any SME IPOs in last 3 years. ( As on 16.08.23 ) As per financials, Shoora Designs Limited has shown good results, RoNW is 7.22% and P/E is respectively 184.45 and 63.10 as per FY22 and FY23 earnings, which looks aggressively priced. Also sudden rise in net profit just before IPO raises doubts. Company is in business of manufacturing and trading of diamonds and jewelleries, which is a highly fragmented and competitive. 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  Mr. Satish K Kansodariya
• 2  Mrs. Sejalben Satish Kansodariya
• 3  Mr. Rajeshbhai Labhubhai Mer