Started in 2008, Sky Gold Limited is Mumbai based company, engaged in the business of designing, manufacturing and marketing of Gold jewelleries. Company mainly deals in 22 Karat gold jewellery. They have the ability to create localised product design mixes to suit various regional tastes. They provide an extensive range of designs and also use studded American diamonds and / or coloured stones in many of the jewellery products. Currently, Sky Gold caters to a large number of wholesalers, showrooms and retailers who buy the products in bulk quantities. Company offers a wide range of products from gold jewellery for special occasions such as weddings and festivals to daily wear jewellery for all ages, genders and across various price points. The products are designed by in-house team of creative designers and also certain freelance designers. The product range includes necklaces, rings, pendants, bracelets, earrings and bangles and customised jewellery based on customer demand. Besides, various clients in Mumbai and nearby areas, they also cater to various jewellery brands. They have incorporated the latest technology for the manufacturing facility which reduces the turnover time from order receipt to delivery to just 72 hours. Sky Gold operates from a 2,740 sq. ft. sole manufacturing facility which is located in the heart of Mumbai city in Mulund (West) where they make casting based jewellery using rubber dye, wax moulds and machines. Company has currently installed capacity of 3000 kg per annum with capacity utilisation of around 77.27% for FY18. Company has central sales offices at Mumbai and also set-up sales offices in Kerala and Telangana to offer better concentration and service in Southern regions of India. They have also recently begun export operations which are handled by the Mumbai sales office. As on June 30, 2018, Company has 3 whole time directors, 40 employees on payroll and approximately 46 personnel on contract basis. As per financial performance, company has posted total income/net profits of Rs. 96.25 cr. / Rs. 0.64 cr. (FY14), Rs. 127.77 cr. / Rs. 0.82 cr. (FY15), Rs. 183.31 cr. / Rs. 0.94 cr. (FY16), Rs. 164.41 cr. / Rs. 0.94 cr. (FY17) and Rs. 548.89 cr. / Rs. 2.63 cr. (FY18). So company has shown consistent growth in top-line and bottom-line over the years except FY17, but the sudden jump in top-pine and bottom-line for FY18 is very much surprising. For last three fiscals it has posted an average EPS of Rs. 4.52 and an average RoNW of 14.21%. Issue is priced at a P/BV of 2.48 on the basis of post issue NAV of Rs. 72.68. If we consider latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 37 and industry average as per RHP is 30, so issue looks aggressively priced. On BRLM's front, for Aryaman Financial Services limited this is the 38th IPO. From last 10 IPOs, 1 listed below issue price, 2 at par and remaining above issue price. As of now, from last 10 IPOs, 1 is trading below issue price and remaining above issue price with gain of around 1 - 10%. ( As on 17.09.18 ) Company has shown consistent growth except FY17, RoNW is 14.21% and issue is priced at P/E is 37 which looks expensive. Sudden jump in top-line and bottom-line in FY18 raises concerns and if company can able to repeat the performance, is big question. Performance of BRLM is neither good nor bad. So we give AVOID rating to this SME IPO.
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