WomenCart Limited

As per financial performance, WomenCart Limited has posted total income/net profits of Rs 1.35 Cr / Rs (0.17) Cr (FY21), Rs 4.25 Cr / Rs 0.20 Cr (FY22), Rs 9.65 Cr / Rs 0.51 Cr (FY23) and Rs 8.49 Cr / Rs 1.03 Cr (Upto 31.08.23 FY24). So company has shown good results, but sudden rise in net-profit is very surprising. Company has posted an average EPS of Rs 0.73/- and average RoNW of (0.08)% for last three fiscals. Issue is priced at a P/BV of 2.38 as per NAV of Rs 36.06/- 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 174.83, 71.51 and 14.61. As per RHP, comparison between peers is shown in above table. On BRLM's front, Narnolia Financial Services Limited is associated with this SME IPO and handled 3 SME IPOs in last 1 years. From last 3 IPO, all opened above issue price or at par on the listing day. As of now from last 3 IPO, one is trading below issue price and remaining are trading above issue price. ( As on 11.10.23 ) As per financials, WomenCart Limited has shown good growth, RoNW is 15.11% and P/E is respectively 174.83, 71.51 and 14.61 as per FY22, FY23 and annualised FY24 earnings. So, issue looks aggressively priced. Also, sudden rise in net-profit and higher value of issue expenses are very surprising. Company is in business of online consumer care product marketing for men and women, 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  Mrs. Veena Pahwa