Vilin Bio Med Limited

As per financial performance, Vilin Bio Med Limited has posted total income/net profits of Rs 16.82 Cr / Rs 0.16 Cr (FY20), Rs 11.72 Cr / Rs 0.12 Cr (FY21), Rs 11.22 Cr / Rs 0.03 Cr (FY22) and Rs 9.03 Cr / Rs 1.28 Cr (9M FY23), So company has declining results, but the sudden rise in net profit just before IPO is very surprising. Company has posted an average EPS of Rs 0.1/- and average RoNW of 1.15% for last three fiscals. Issue is priced at a P/BV of 1.84 as per NAV of Rs 16.28/- post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 1249 and as per annualised FY23 earnings P/E is 24.51. As per RHP, comparison between listed peers are shown in above table. On BRLM's front, Inventure Merchant Banker Services Private Limited is associated with this SME IPO and handled 6 SME IPOs in last 3 years. First Overseas Capital Limited : This is 7th IPO from this BRLM. From last 6 IPOs, three opened below issue price and remaining opened above issue price or at par on the day of listing. As of now, from last 6 IPOs, all are trading below issue price. ( As on 15.06.23 ) As Per financials, Vilin Bio Med Limited has shown poor results, RoNW is 0.45% and P/E is respectively 1249 and 24.51 as per FY22 and annualised FY23 earnings, which looks very aggressively priced. Also sudden rise in net profit just before IPO raises concerns. Company is in domestic pharmaceutical business, which is highly competitive and fragmented. Performance of BRLM is poor. So we are giving AVOID rating to this SME IPO, readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr Viswa Prasad Sadhanala
• 2 Mr. Ramesh Reddy Sama
• 3 Mr. Sadhanala Venkata Rao
• 4 Mr. D. Srinivasa Reddy