Yaap Digital Limited is a digital marketing, content, and technology services company, built for brands seeking meaningful connections with today's digital-first consumers. Through a unified model that blends creative storytelling, data-driven decision making, and AI-powered marketing technologies, they offer an integrated suite of services including influencer marketing, content creation, performance marketing, UI/UX design, media buying, and marketing analytics. As of the date, company operates across three countries, India, United Arab Emirates, and Singapore under the 'YAAP' brand and its wholly-owned subsidiaries. They have employed over 100 employees and have been executing marketing campaigns for past nine years, covering sectors such as financial services, consumer goods, tourism, automotive, technology, healthcare, and government projects. The rise of AI-powered and immersive advertising solutions is set to shape the future landscape, ensuring sustained long-term growth for India's advertising industry. Digital marketing involves the advertising of products, brands, or services using digital tools and internet media. It includes elements such as Social Media Marketing, Search Engine Optimization, Influencer Marketing, Pay-Per-Click Advertising, Content Marketing, UI/UX Design, Packaging Design, Brand Strategy and Identity, Performance Marketing and Brand Collaborations. Digital marketing accounted for the largest share of the advertising market at 45.68% in CY 2024, underscoring a fundamental shift in consumer engagement and marketing strategies. Operating in the rapidly growing digital advertising and marketing services industry (Source: D&B Report), they are focused on meeting the evolving needs of modern businesses. The business is structured around a fully digital model that focuses on modern marketing methods rather than traditional approaches. they offer services that bring together data, AI based tools, and content to help clients manage their marketing needs. This approach enables businesses to work with a single provider instead of coordinating with multiple separate agencies. As per financial performance, Yaap Digital Limited has posted total income / net profits of Rs 78.04 / (2.59) Cr (FY23), Rs 113.06 / Rs 2.50 Cr (FY24), Rs 154.39 Cr / 11.93 Cr (FY25) and Rs 91.42 Cr / 9.20 Cr (upto Q3 FY26). So as per previous financials data, company has shown good growth, but net-profit increased suddenly just before the IPO and trade receivables are around 26% of FY25 total sales. Company has an average EPS of Rs 4.25 and average RoNW of 29.19% for last three fiscals. Issue is priced at a P/BV of 6.81 as per NAV of Rs 21.30/- as on 31.12.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 121.09, 25.44 and 24.73 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Socradamus Capital Private Limited is associated with this IPOs, and has handled 3 IPOs in last three fiscal years. From last 3 IPOs, one opened below issue price and remaining all above issue price or at par, on the day of listing. As of now, from last 3 IPOs, all are trading below issue price or at par. (as on 21.02.26 ) As per financials, Yaap Digital Limited has shown average results, RoNW is 53.63% and P/E is 121.09, 25.44 and 24.73 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced. Also sudden rise in net-profit and higher trade receivables are some red flags. Company is a digital marketing, content, and technology services company, which is highly competitive business segment. Performance of BRLM is poor post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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