Unicommerce eSolutions Limited is an e-commerce enablement Software-as-a-Service ('SaaS') platform in the transaction processing or nerve centre layer. They enable end-to-end management of e-commerce operations for brands, sellers and logistics service provider firms. They enable their enterprise clients and small and medium business ('SMB') clients to efficiently manage their entire journey of post-purchase e-commerce operations through a comprehensive suite of SaaS products that include (i) the warehouse and inventory management system ('WMS'); (ii) the multi-channel order management system ('OMS'); (iii) the omni-channel retail management system ('Omni-RMS'); (iv) seller management panel for marketplaces, housed in their platform, Uniware; (v) recently introduced post-order services related to logistics tracking and courier allocation ('UniShip'); and (vi) payment reconciliation ('UniReco'). Additionally, they offer several sub-modules that the customers may use as a part of their routine operations. Company's products are designed and regularly updated to meet these challenges and the business needs of various types and sizes of retail enterprises, both online and offline. They provide a modular suite of products with features developed over years for a variety of uses across industries, including inter alia, inventory management and visibility, management of orders across channels, timely order fulfilment and minimised cancellations, procurement and vendor management and returns management. Company's products also enable plug-and-play integrations that seamlessly connect other critical components of a client's supply chain stack, such as their own apps/websites, marketplaces, logistics service providers, point of sales systems and financial/ERP systems for automated data exchange and for exchanging critical operating instructions with sales systems and financial/ERP systems of the clients to enable end-to-end automation. They have an extensive suite of technology and partner integrations, which, till March 31, 2024, comprises 131 Marketplaces and WebStore integrations, 101 Logistics Partner integrations and 11 ERPs, POS and other systems integrations. They have been able to create a large, growing base of marquee clients across the retail and e-commerce landscape in Bharat as well as consistently onboard new clients in international geographies. The clients, inter alia, include D2C brands, brand aggregator firms, traditionally offline brands, e-commerce retailers, marketplaces, third-party logistics and fulfilment players and SMBs. The clients belong to various sectors including fashion (apparel, footwear, accessories), electronics, home and kitchen, FMCG, beauty and personal care, sports and fitness, nutrition, health and pharma as well as third-party logistics and warehousing. Some of the clients Lenskart, Zivame, Paragon, Boat, Portronics, Mamaearth, Sugar, emami, cello, Urban Company, etc. They had 795 enterprise clients and 2,707 SMB clients during the quarter ended March 31, 2024, 672 enterprise clients and 3,009 SMB clients during the quarter ended March 31, 2023, and 470 enterprise clients and 2,404 SMB clients during the quarter ended March 31, 2022. As per financial performance, Unicommerce eSolutions Limited has posted total income / net profits of Rs 61.36 Cr / Rs 6.01 Cr (FY22), Rs 92.97 Cr / 6.47 Cr (FY23) and Rs 109.43 Cr / Rs 13.07 Cr (FY24). So as per previous financials data, company has shown good sales growth, but making consistent losses and cash-flow is also negative. Company has an average EPS of Rs 0.87 and average RoNW of 16.07% for last three fiscals. Issue is priced at a P/BV of 15.81 as per NAV of Rs 6.83/- as on 31.03.24. If we attribute latest earnings of FY22, FY23, and FY24, then asking price is at a P/E of around 184.07, 170.83, and 84.59 respectively. As per RHP, there is no listed peers, but we may compare companies like Rate Gain, Newgen with Unicommerce and it looks aggressively priced. On BRLM's front, two lead managers are associated with this IPO, and have handled around 35 IPOs ( Mainboard and SME ) in last three fiscals. IIFL Securities Limited: This is 32nd IPO from this BRLM. From last 10 IPOs, one opened below issue price on the day of listing. As of now, from last 10 IPOs, all are trading above issue price. (As on 01.08.23) CLSA India Private Limited: This is 5th IPO from this BRLM. From last 4 IPOs, one opened below issue price on the day of listing. As of now, from last 4 IPOs, all are trading above issue price. (As on 01.08.23) As per financials, Unicommerce eSolutions Limited has shown good growth, RoNW is 18.98% and P/E is 184.07, 170.83, and 84.59 respectively as per FY22, FY23, and FY24 earnings. So, issue looks very aggressively priced. Company is an e-commerce enablement Software-as-a-Service ('SaaS') platform in the transaction processing or nerve centre layer, which is a specialised business segmented. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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