Sigma Solve Limited, started in 2010 and based in Ahmedabad - Gujarat, is engaged in the IT and IT enabled services. We offer turnkey consultancy services to our customers in their business domain. We also in association with group entity 'Sigma Solve' provide services related to Web & E-commerce Development, Real Time Application development, Business Intelligence Analytics, CRM Development, Digital Marketing, UI & UX Design, Automation Testing and Quality Assurance. Company 'Sigma' and 'Sigma Solve Inc.' (Erstwhile group concern and now subsidiary company w.e.f. October 23, 2019) having their offices at Florida (USA), Atlanta (Home Office), Australia (Home Office) jointly makes efforts for new business acquisitions. Company’s 100% of the revenue is from export of services, and in order to provide hassle free payment facilities to the clients, company channelize the payment through 'Sigma Solve Inc.', having their presence in Florida (USA), Atlanta (Home Office) and Australia (Home Office). After working in association with Sigma Solve Inc. for more than 9 years, they have acquired 51.04% stake on October 23, 2019 by investing Rs 210.93 Lakhs in Sigma Solve Inc. and making it the subsidiary company. As on June 30, 2020, company employed 103 personnel. On the financial performance front, for the last three fiscals, SSL has reported standalone turnover/net profits (loss) of Rs. 2.57 cr. / Rs. 0.23 cr. (FY18), Rs. 3.49 cr. / Rs. 0.35 cr. (FY19) and Rs. 5.69 cr. / Rs. 0.65 cr. (FY20). On consolidated basis, company has posted Rs 10.96 Cr revenue with profit of Rs 1.94 Cr. So company has shown good growth over the years. For the last three fiscals, company has posted average EPS of Rs. 2.76 and an average RoNW of 29.69% on standalone basis and for FY20 EPS of Rs 5.73 and RoNW is 28.23% on consolidated basis. The issue is priced at a P/BV of 2.46 based on its NAVs of Rs. 18.32 post issue on standalone basis and P/BV of 1.94 based on its NAVs of Rs. 23.23 post issue on consolidated basis . As per FY20 earnings (with post issue equity) issue is priced at P/E of 9.51. So as per FY20 earnings issue looks reasonably priced. Comparison between listed peers are shown in above table. On BRLM's front for Beeline Broking Ltd, this is the 6th IPO in last three fiscals. Out of last 5 listing, 1 opened at issue price and the rest with premiums ranging from 1% to 10% on the day of listings. As of now from last 5 IPOs, three are trading below issue price, and remaining above issue price. ( As on 26.09.2020 ) Company has shown good results and issue is priced at P/E of around 10 as per FY20 earnings, which is fairly priced in current scenario. Company is in IT sector which is very highly competitive with growth opportunities. Performance of BRLM very poor. So we give NEUTRAL rating to this SME IPO.
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