TIMES GREEN ENERGY (INDIA) LTD

Incorporated in 2010, Times Green Energy (India) Limited is engaged in the farming and selling activities of agriculture produce and trading of natural organic products, bioproducts, and pesticides. The company operates in two business segments; Agro-Business (distribution of agro products and agrochemicals including organic bio-products) and Women Hygiene and Safety (distribution of Sanitary Napkins). Recently, in Sep 2020, it has launched an app, Bharatbazaar (Kisaan to Kitchen) to sell 1000+ products including cooking essentials, dairy products, branded foods, and sanitary napkins in and around Hyderabad. On the financial performance front, TGE reported turnover/net profits (loss) of Rs. 20.19 cr./ 0.08 cr. (FY18), Rs. 15.15 cr./ 0.09 cr. (FY19) and Rs. 15.14 cr. / Rs. 0.12 cr. (FY20). For upto Q3 FY21, company has posted 5.87 Cr total income and 0.13 Cr net profit. So company has shown decline in top-line and it may be due to current pandemic situation. For the last three years, company has posted average EPS of Rs. 1.67 and RoNW of 10.44%. The issue is priced at a P/BV of 1.63 based on its NAVs of Rs. 37.46 post issue. As per FY20 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 83 and if we annualise FY21 earnings, then P/E is around 60. So issue looks aggressively priced. As per RHP, there is no listed peers. On BRLM's front Aaryaman Financial Services Pvt. Ltd. has handled 25 IPOs in last three fiscals. From 10 IPOs, 2 are opened below and remaining are opened above issue price. As of now from 10 IPOs, 3 are trading below and remaining are trading above issue price . ( As on 11.06.2021 ) For Times Green Energy (India) Limited, financials are almost static, RoNW is 9.34%, P/E is around 83 for FY20 and if we annualise FY21 earnings, then PE is around 60. So issue looks aggressively priced. Performance of BRLM is good. So we give AVOID rating to this SME IPO.

• 1 Mrs. Dinne Lakshmi Jumaal
• 2 Mrs. Kanuparthi Vani