Visaman Global Sales Limited is engaged in the business of supply of round pipes, square pipes, rectangle pipes, various specification of structural steels, BGL coils, GP(GI) coils, HR coils, CR coils, colour coated coils, MS sheets, GP and GC sheets, CR sheets, HR sheets and plates, colour coated sheets, roofing PUF panel, wall PUF panel etc. Further, the company also provide the credit facility to the existing customers as value added service. They provide facility to pay later to the existing customers with good financial record in this case if the customers had paid all the outstanding amount in a proper time frame, then they fix their credit worthiness via fix amount of credit limit and the credit days which varies with customers to customers. In addition, company provides the facility of customization to meet the specific requirement of the customers w.r.t specific size, length, breadth, thickness etc. of the products. They send the requisition to manufacturer for customization of specified products. Further, in certain cases, if the manufacturer is unable to do the specified customization, then, the same will be get done by the third-party process houses. The Company outsources the process of modification and alteration to the third party. They are one of the dealers of APL Apollo Tubes Limited. Company sells the products through a diversified sales & distribution mix viz. Business-to-Consumer (B to C), Business-to-Channel (B to CH) and Business-to-Business (B to B). As per financial performance, Visaman Global Sales Limited has posted total income / net profits of Rs 136.36 Cr / Rs 0.33 Cr (FY21), Rs 324.07 Cr / Rs 0.94 Cr (FY22), Rs 376.05 Cr / Rs 1.13 Cr (FY23) and Rs 206.91 Cr / Rs 1.01 Cr (Upto Q3 FY24). So as per previous financials data, company has shown good growth. Company has posted an average EPS of Rs 1.03 and average RoNW of 11.46% for last three fiscals. Issue is priced at a P/BV of 2.34 as per NAV of 18.38 as on post issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 62.74, 52.41 and 43.84 respectively, which looks aggressively priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Shreni Shares Limited is associated with this SME IPO and handled 28 SME IPOs in last 3 year. From last 10 SME IPOs, all opened above issue price or at par on the day of listing. As of now from last 10 SME IPOs, two are trading below issue price and remaining are trading above issue price. ( As on 20.06.24 ) As per financials, Visaman Global Sales Limited has shown good growth, RoNW is 11.40% and P/E is respectively 62.74, 52.41 and 43.84 as per FY22, FY23 and annualized FY24 earnings. So, issue looks aggressively priced. Company is engaged in the business of trading of round pipes, square pipes, rectangle pipes, various specification of structural steels, BGL coils, GP(GI) coils, HR coils, CR coils, colour coated coils, MS sheets, GP and GC sheets, CR sheets, HR sheets and plates, colour coated sheets, roofing PUF panel, wall PUF panel etc, which is highly competitive and fragmented business segment. Performance of BRLM is good. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment