Supreme Facility Management Limited

As per financial performance, Supreme Facility Management Limited has posted total income / net profits of Rs 236.69 Cr / Rs 5.77 Cr (FY22), Rs 330.78 Cr / Rs 7.28 Cr (FY23), Rs 356.95 Cr / Rs 10.93 Cr (FY24) and Rs 99.33 Cr / Rs 3.6 Cr (Q1 FY25). So as per previous financials data, company has shown good growth, but trade receivables are around 28% of FY24 total income that is very high. Company has posted an average EPS of Rs 3.4 and average RoNW of 20.14% for last three fiscals. Issue is priced at a P/BV of 3.73 as per NAV of Rs 20.39/- as on 30.06.24. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 32.02, 22.65 and 17.34 respectively, which looks fully priced. As per RHP, there is no listed peers. On BRLM's front, Khandwala Securities Limited is associated with this SME IPO and handled 7 SME IPOs in last 3 years. From last 7 IPOs, one opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 7 IPOs, five are trading below issue price and remaining are trading above issue price or at par as on today. ( As on 07.12.24 ) As per financials, Supreme Facility Management Limited has shown good growth, RoNW is 21.29% and P/E is respectively 32.02, 22.65 and 17.34 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced, but higher trade receivables raises doubts. Company is an integrated business services provider focused in offering Integrated Facility Management ('IFM') services and other Support Services ('Support Services') to industries across multiple sectors, which is highly competitive and fragmented business segment. Performance of BRLM is poor post listing. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Lalasaheb Vitthalrao Shinde
• 2 Rajendra Lalasaheb Shindebr>
• 3 Manisha Rajendra Shinde