Vrundavan Plantation Limited

As per financial performance, Vrundavan Plantation Limited has posted total income/net profits of Rs 6.72 Cr / Rs 0.28 Cr (FY21), Rs 12.23 Cr / Rs 0.34 Cr (FY22), Rs 18.27 Cr / Rs 1.99 Cr (FY23) and Rs 3.60 Cr / Rs 0.31 Cr (Upto 31.05.23 FY24). So company has shown good growth, but sudden rise in net-profit just before IPO is very surprising. Issue is priced at a P/BV of 2.96 as per NAV of Rs 36.44/- as on post issue. As per FY22, FY23 and annualised FY24 earnings on fully diluted equity post issue, asking price is at P/E of respectively around 165.4, 28.91 and 30.56. As per RHP, there is no peers. On BRLM's front, Interactive Financial Services Limited is associated with this SME IPO and handled 9 SME IPOs in last 3 years. From last 9 IPO, two opened below issue price and remaining opened at par or above issue price on the listing day. As of now from last 9 IPO, six are trading below issue price and remaining are trading above issue price. ( As on 27.10.23 ) As per financials, Vrundavan Plantation Limited has shown good results, RoNW is 4.19% and P/E is respectively 165.4, 28.91 and 30.56 as per FY22, FY23 and annualised FY24 earnings. So, issue looks aggressively priced. Also, sudden rise in net-profit is very surprising. Company is in business of nursery, which is highly fragmented and competitive segment. Performance of BRLM is poor. 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  Upendra Tiwari