Vinyas Innovative Technologies Limited

As per financial performance, Vinyas Innovative Technologies Limited has posted total income/net profits of Rs 207.80 Cr / Rs 1.23 Cr (FY21) and Rs 212.16 Cr / Rs 1.00 Cr (FY22) and Rs 238.85 Cr / Rs 7.34 Cr (FY23), So company has average growth, but sudden rise in bottom-line before IPO is very surprising. Company has posted an average EPS of Rs 11.26/- and average RoNW of 9.80% for last three fiscals. Issue is priced at a P/BV of 1.66 as per NAV of Rs 99.55/- as on Post issue. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 206.00 and as per FY23 earnings P/E is 28.28. As per RHP, comparison between peers is shown in above table. On BRLM's front, Sarthi Capital Advisors Private Limited is associated with this SME IPO and handled 5 SME IPOs in last 3 years. From last 5 IPOs, one opened below issue price and remaining opened at par or above issue price on the listing day. As of now from last 5 IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 26.09.23 ) As per financials, Vinyas Innovative Technologies Limited has shown average results, RoNW is 16.13% and P/E is respectively 206.00 and 28.28 as per FY22 and FY23 earnings. So, issue looks aggressively priced. Also sudden rise in net profit is very surprising. Company is in business of providing related services for design, engineering, and electronics manufacturing, which is highly fragmented and competitive segment. Performance of BRLM is good. So we are giving NEUTRAL rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Narendra Narayanan
• 2  Mrs. Meera Narendra
• 3  Mr. Sumukh Narendra