Usha Financial Services Limited

As per financial performance, Aditya Ultra Steel Limited has posted total income / net profits of Rs 515.98 Cr / Rs 4.89 Cr (FY22), Rs 530.49 Cr / Rs 2.78 Cr (FY23) and Rs 588.56 Cr / Rs 7.92 Cr (FY24). So as per previous financials data, company has shown zig-zag results. Company has posted an average EPS of Rs 3.33 and average RoNW of 16.92% for last three fiscals. Issue is priced at a P/BV of 2.83 as per NAV of 21.93 as on 31.03.24. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 31.50, 55.46 and 19.43 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Swastika Investmart Limited is associated with this SME IPO and handled 11 IPOs in last 3 years. From last 10 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 10 IPOs, three are trading below issue price and remaining are trading above issue price as on today. ( As on 04.09.24 ) As per financials, Aditya Ultra Steel Limited has shown zig-zag results, RoNW is 21.08% and P/E is respectively 31.50, 55.46 and 19.43 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced. Company is in business of manufacturing of rolled steel product i.e. TMT bars under the Kamdhenu brand catering mainly to the construction industry and for infrastructure development, which is highly fragmented and competitive business segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Rajesh Gupta
• 2 Anoop Garg
• 3 Geeta Goswami
• 4 Nupur Gupta
• 5 BR Hands Investments Private Limited