Trekkingtoes.com Limited, started in 2012, is engaged in the the business of offering travel aggregator platform to cab rental services to wide range of customers via the on Call booking Service, Website i.e. www.hippocabs.com and mobile application (app) i.e.HippoCabs. Company is also engaged in Data Base trading, Software Consultancy services, Currency Conversion Services inIndian as well as International Markets. Using dynamic pricing algorithms, they have been able to increase the efficiency of return booking to a point where almost all the driver partners are able to get the return journeys directly through the platform. Following a route specific approach, they are able to manage the demand and supply on both sides of the route, enabling the client to pay only for one way and for drivers to have customers on both the sides. Company has more than 1500 vendors with more than 4000 vehicles registered with them for intercity services. They provide dynamic pricing and route specific approach. Currently the services cover approximately 200 cities across India. They plan to replicate the route specific approach which they applied on Jaipur-Delhi route on similar routes like Delhi- Agra, Delhi-Chandigarh, Delhi-Dehradun, Delhi-Manali, Jaipur-Agra and Mumbai-Pune to become market leader on these routes. On the financial performance front, for the last three fiscals, Trekkingtoes.com has reported turnover/net profits (loss) of Rs. 3.17 cr. / Rs. (0.44) cr. (FY18), Rs. 4.84 cr. / Rs. (1.07) cr. (FY19) and Rs. 2.69 cr. / Rs. 0.03 cr. (FY20). So company has posted losses consistently and for FY20 also on operational basis company has posted loss. For the last three fiscals, company has posted average EPS of Rs. (410.03) and an average RoNW of 92.41%. The issue is priced at a P/BV of 3.28 based on its NAVs of Rs. 32.03 post issue. As per FY20 earnings issue is priced at P/E of 668. So as per FY20 earnings issue looks very aggressively priced. As per RHP, there is no listed peers available. On BRLM's front for Fast Track Finsec Private Limited, this is the 4th IPO in last three fiscals. Out of last 3 listing, 1 opened below issue price and the rest with premiums ranging from 0.5% to 6% on the day of listings. As of now from last 3 IPOs, two are trading below issue price, and remaining above issue price. ( As on 18.08.2020 ) Company has shown inconsistent results and issue is priced at P/E of around 668 as per FY20 earnings, which is over priced in current scenario. Performance of BRLM is poor. So we give AVOID rating to this SME IPO.
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