IPO Review

BLS E-Services Limited is a technology-enabled digital service provider, offering (i) Business correspondent services to major banks in India, (ii) Assisted E-services; and (iii) E-Governance Services at grassroots levels in India. Through its robust network, it provides access points for the delivery of essential public utility services, social welfare schemes, healthcare, financial, educational, agricultural, and banking services for governments (G2C) and businesses (B2B).

OBJECTS OF THE ISSUE

• Strengthening the technology infrastructure to develop new capabilities.
• Funding initiatives for organic growth by setting up of BLS Stores.
• Achieving inorganic growth through acquisitions.

Rahul Sharma

Executive Director and Chief Financial Officer (CFO) of the Company. He was appointed as the Chief Financial Officer of the Company since December 21, 2022. He has been associated with BLS group since the year 2011. He has over 16 years of experience in the field of taxation, finance and accounts.

Shikhar Aggarwal

Chairman and Non-Executive Director of the Company. He has over 6 years of experience in providing technology enabled services to governments and citizens with his association with BLS group of companies since 2016 and is presently, the joint managing director of BLS International Services Limited.

Sanjay Kumar Rawat

Company Secretary & Compliance Officer of the Company since March 14, 2023. He is an associate member of the Institute of Companies Secretaries of India. He has over 12 years of experience in secretarial and legal compliance. Prior to joining this Company, he was associated with Terracis Technologies Limited and TaraSpan Solutions Private Limited.

Lokanath Panda

Chief Operating Officer of the Company with effect from April 12, 2023. He has over 20 years of experience in in the field of payment systems, financial inclusion, citizen services portfolio and expansion of retail channel for other value added services and products. Presently, he is also a whole time director in the Subsidiary i.e., ZMPL.

COMPANY PROFILE

• Through its tech-enabled integrated business model, we provide digital and physical products and services in the G2C, B2C, and B2B categories in semi-urban, rural, and remote areas.
• The Company organizes its business along three primary business segments, (i) Business Correspondents Services; (ii) Assisted E-services; and (iii) E-Governance Services.
• A key stakeholder in each of its business segments are merchants, with whom it collaborate for delivery of its products and services to the citizens.
• Its merchants act as its interface with the consumers and play a critical role in delivering goods and services. Presently, its merchants are organized into two categories i.e. BLS Touchpoints and BLS Stores. As of September 30, 2023, it has 98,034 BLS Touchpoints, which includes 1,016 BLS Stores.

COMPETITIVE STRENGTHS

• Asset light business mode.
• It enables social and financial inclusion in India.
• Multiple cross-selling and up-selling opportunities, network effect, and wide reach for customer acquisition.
• Business model with diverse sources of revenue and negligible customer acquisition and retention costs. Successful track record of the acquisition.
• Experienced senior management.

KEY STRATEGIES

• Strengthening and integrating its technology backbone. Grow its merchants and BLS Stores network.
• Pursue strategic investments and acquisitions to enhance product and service capabilities.
• Leverage existing market position to grow each business segment, with an aim to improve cross-selling results.

KEY CONCERNS

• The Company As a result of its limited operating history, it may not be able to compete successfully, and it may be difficult to evaluate its business and future operating results.
• None of the e-governance projects are awarded to the Company directly. All of its contracts to E- Governance projects are awarded to its Corporate Promoter, BLS International Services Limited. Deterioration in the performance of its Subsidiaries may adversely affect its results of operations. It is dependent on and derives a substantial portion of its revenue from, a single customer, one of the largest PSU Bank.
• The Company provides E-Governance Services only in the states of Punjab, Uttar Pradesh and West Bengal.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

BLS E Services Limited is a digital service provider, and it could be a beneficiary of digital India initiatives by the government. The company operates on an asset-light business model, has a wide reach for customers, and has a business model with diverse sources of revenue. The company has also reported consistent growth in its financials. A few concerns are that the company has a limited operating history, making it difficult to evaluate its business and growth; secondly, it is dependent on a single customer for major revenue; and third, it has geographical concentration. Finally, it is valued at a P/E of 44x, which seems fairly priced, so considering all the factors, we give a subscribe rating to this.

Nova AgriTech Limited an agri-input manufacturer and it offer soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach, wherein it mainly offer ecologically sustainable and nutritionally balanced products based on its Research and Development.

OBJECTS OF THE ISSUE

• Funding capital expenditure for the expansion.
• Payment of certain outstanding loans of the company.
• General corporate purposes.

KEY MANAGERIAL PERSONNEL

Adabala Seshagiri Rao

Chairperson and Independent Director of the Company. He holds Degree of Bachelor of Science and Degree of Bachelor of Laws from the Andhra University. He has over 35 years of experience in the banking industry. His last employment before retirement was with the Union Bank of India.

Malathi S

Promoter and Executive Director of the Company. She has completed her Bachelor of Commerce from Kakatiya University. She has been associated with the Company since 2011 and oversees the operations of the Company.

Kiran Kumar Atukuri

Promoter and Managing Director of the Company. He has almost two decades of experience. He is the guiding force behind all the corporate decisions and is responsible for the entire business operations specifically manufacturing and sales operations of the Company.

Gunupudi Kamoji Srinivas

Chief Financial Officer – Finance and Account. He holds a degree in Bachelor of Commerce from Andhra University and is a member of the Institute of Chartered Accountants of India. He has 27 years of experience with several organizations.

Neha Soni

Company Secretary of the Company. She holds a degree of Bachelor in Commerce and Bachelor of Law from Devi Ahilya Vishwavidyalya and is a member of the Institute of Company Secretaries of India (“ICSI”). She has 2 years of experience having worked with C.R. Broadcasting Hyderabad Limited as a Company Secretary.

COMPANY PROFILE

• Nova AgriTech manufactures, distributes, and markets a wide range of product categories consisting of (a) soil health management products; (b) crop nutrition products; (c) biostimulant products; (d) biopesticide products (e) Integrated Pest Management products; (f) new technologies; and (g) crop protection products.
• As of November 30, 2023, it has received a total of 720 product registrations comprising 7 registrations in the soil health management category, 176 registrations in the crop nutrition category, 4 registrations in the biopesticide category, 7 registrations under Technical Indigenous Manufacture, and 526 registrations in the crop protection category.
• It has a total dealer network comprising approximately 11,722 dealers out of which approximately 6,769 dealers are active in the current fiscal year and this network is currently spread across 16 states of India.
• The Company intends to import and distribute Technicals, which will be a prominent factor in the growth of the agriculture sector in India in the near future.

COMPETITIVE STRENGTHS

• One-stop solution for soil health management, crop nutrition, biostimulants, biopesticides, Integrated Pest Management (IPM), and crop protection through a diversified branded product portfolio.
• Established a distribution network across various geographies through many dealers. Strengthening farmer outreach through Nova Kisan Seva Kendra.
• Technology-driven product development and marketing. Experienced Management Team and Promoters.
• Well Equipped Research and development facility.

KEY CONCERNS

• The Company is subject to strict technical specifications, quality requirements, regular inspections, and audits by various authorities and/or regulators.
• The business is subject to climatic conditions. Seasonal variations and unfavorable weather patterns may have an adverse effect on its business.
• It may be subject to fluctuations in prices or any unavailability of the raw materials that it uses in its products.
• A substantial part of the revenue generated by the Company is from the jurisdiction of Andhra Pradesh, Karnataka, and Telangana only.
• The company is currently dependent on a single manufacturing unit located in Telangana.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Nova Agritech is an agri-input manufacturer that provides a one- stop solution for the health of soil and crops through its diversified branded product portfolio. It has a strong presence across geographies, and its effective marketing strategy positions the company for continued growth.

Nova Agritech's financial performance has been impressive, with consistent growth over the past three years and expansion plans firmly in place.

However, some key risks require consideration. The company's business is inherently linked to climatic conditions and relies on a limited geographical area for the majority of its revenue.

Additionally, the agri-input sector is highly competitive. However, the issue is valued at a P/E of 13.05x, and its RoNW of 38.27% is also attractive, thus considering all the factors we suggest to Apply for this IPO for listing benefits.

EPACK Durable Limited is the second largest room air conditioner original design manufacturer (“ODM”) in India in terms of number of units (indoor units + outdoor units) manufactured in Fiscal 2023. Its current product portfolio currently comprises i) Room air conditioners where it designs and manufactures complete RACs. ii) Small domestic appliances. and iii) Components.

OBJECTS OF THE ISSUE

• Funding capital expenditure for the expansion.
• Payment of certain outstanding loans of the company.
• General corporate purposes.

KEY MANAGERIAL PERSONNEL

Bajrang Bothra

Chairman and Whole-time Director on the Board of the Company. He oversees the business operations and management of the Company. He has a master’s degree in commerce from Shri Ram College of Commerce, University of Delhi, Delhi. He has approximately 27 years of experience in the electronics manufacturing sector.

Ajay DD Singhania

Managing Director and Chief Executive Officer of the Company. He has approximately 24 years of experience in the electronics manufacturing sector. He oversees the sales and marketing, production, supply chain management, and R&D departments of the Company.

Rajesh Kumar Mittal

Chief Financial Officer of the Company. He has been associated with the Company since June 8, 2020. He has approximately 25 years of post-qualification work experience in the finance and accounting.

Esha Gupta

Company Secretary and Compliance Officer of the Company. She has been associated with the Company since April 3, 2023. She has approximately 15 years of experience in the secretarial sector.

COMPANY PROFILE

• Since 2003, EPACK has been on a journey of evolution , where it initially started as an OEM for RAC brands.
• Driven by its focus on product development and innovation , it evolved into an ODM partner for RACs for its customers.
• The company also identified the opportunity to increase its value addition in its offerings to customers, and accordingly, started manufacturing various components such as sheet metal, injection moulded, cross-flow fans, and PCBA components.
• In parallel, it capitalized on its existing manufacturing infrastructure to strategically expand its operations in the small domestic appliances (“SDA”) market.
• The Company has dedicated R&D centers in Greater Noida, Bhiwandi, and Dehradun and it has 4 manufacturing facilities in Dehradun and two other facilities as Bhiwandi Manufacturing Facility and the Sri City Manufacturing Facility.
• Its top customers include Blue Star Limited, Daikin Air conditioning India Private Limited, Carrier Midea India Private Limited, Voltas Limited, Havells India Limited, Haier Appliances (India) Private Limited.

COMPETITIVE STRENGTHS

• Long-standing relationships with established customers.
• Among the key manufacturers in the fast-growing RAC and SDA manufacturing industries.
• Advanced vertically integrated manufacturing operations with a product portfolio aimed at capturing the full spectrum of the RAC and SDA value chain.
• Robust product development and design optimization capabilities.
• Experienced Promoters supported by the senior management team.

KEY STRATEGIES

• Expanding its existing product portfolio.
• Continue to drive operational efficiencies through expansion of its integrated manufacturing capabilities and continued investment in its R&D infrastructure.
• Increase wallet share with existing customers and continue to focus to expand its customer base. Further, explore initiatives to strengthen control over its supply chain.

KEY CONCERNS

• A significant portion of the company’s revenue is generated from its top 5 customers.
• The Company’s customers do not make long-term commitments to it and may cancel or change their sourcing requirements.
• Failure to maintain its quality accreditations and certifications may negatively impact its brand and reputation.
• The industry is competitive and company’s inability to compete effectively may adversely affect its business.
• Its RAC business is subject to seasonal variations and cyclicality.

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COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

EPACK Durable is India's second-largest room air conditioner (RAC) ODM. The company boasts long-standing relationships with top customers, leverages advanced vertically integrated manufacturing and possesses robust product development capabilities. EPACK Durable prioritizes continuous product portfolio expansion. And its consistent financial performance demonstrates operational efficiency and growth potential.

However, some key risks warrant consideration. The company's dependence on a limited number of major customers. Additionally, the RAC industry is highly competitive, and the business experiences seasonal fluctuations.

The issue is fully priced at a P/E valuation of 56.4x; thus, considering all the factors ,we recommend that investors apply for this IPO with a mid- to long-term view. However, they should carefully evaluate their risk tolerance and current market sentiments.

Azad Engineering manufactures and supplies high-precision forged and machined components to global original equipment manufacturers (“OEMs”) in the energy, aerospace, defense, and oil and gas industries, manufacturing highly engineered, complex, and mission and life-critical components. The Company’s products include 3D rotating airfoil/ blade portions of turbine engines and other critical components.

OBJECTS OF THE ISSUE

• Funding capital expenditure of the Company.
• Payment of certain of the borrowings availed by the Company.

KEY MANAGERIAL PERSONNEL

Rakesh Chopdar

Chairman and CEO of the Company. He has completed his education until the 10th standard from Trinity Public School, Hyderabad, Telangana. He has been involved with the Company since 2003 and has more than two decades of experience in engineering and manufacturing activities.

Ronak Jajoo

Chief Financial Officer of the Company. He has previously worked with Pransa Financial Consultants Private Limited as vice president. He joined the Company on April 15, 2021.

Ful Kumar Gautam

Company Secretary and Compliance Officer of the Company. He has passed the examination in relation to bachelor’s degree in commerce (insurance) from Loyola Academy Degree & P.G. College and is an associate member of the Institute of Company Secretaries of India. He is also an associate member of the Insurance Institute of India.

COMPANY PROFILE

• Azad Engineering’s components have been supplied to countries such as the USA, China, Europe, the Middle East, and Japan since its inception.
• Its customers include global OEMs across the energy, aerospace, defense, and oil and gas industries such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.
• The demand for its precision, forged and machined components is driven by requirements relating to energy turbines (industrial, gas, nuclear, and coal), and aircraft (commercial and military), amongst others.
• In the energy industry, its Company produces high-precision rotating and stationary 3D airfoils/ blades, special machined parts, and combustion component assemblies.
• Its aerospace and defense products include airfoils/ blades and components for engines, auxiliary power units (“APUs”), hydraulics, actuating systems, flight controls, fuel, and inerting sections of commercial and defense aircraft and spacecraft.

COMPETITIVE STRENGTHS

• A preferred name in the manufacturing of highly engineered, complex, and mission and life-critical high- precision components for global OEMs.
• Supplying to OEMs with high global market penetration.
• Long-standing and deep customer relationships.
• Advanced manufacturing facilities with a diverse range of products and solutions.
• Consistent track record of financial performance.
• Experienced Promoter and management team backed by marquee investors.

KEY STRATEGIES

• Leverage its industry-leading capabilities by continuing to diversify its customer base.
• Augment its manufacturing capabilities, including by way of inorganic acquisitions.
• Strengthening its core capabilities across the focus industries.
• Further reduce operating costs, improve operating efficiencies, and deploy new technologies.

KEY CONCERNS

• Business is dependent on the sale of its products to key customers.
• The Company faces competition globally in its business against other manufacturers of high precision and mission-critical components manufacturing.
• The global nature of its operations exposes it to numerous risks that could materially adversely affect its business.
• There may be problems with the products it manufactures that could result in liability claims against it.
• It is subject to strict compliance with quality requirements which results in incurring significant expenses to maintain its product quality.
• The company had negative cash flows in prior periods and may continue to have negative cash flows in the future.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Azad Engineering stands as a prominent player within its segment, boasting strong, long-standing relationships with renowned global OEMs. Its diverse product offerings and technologically advanced manufacturing facilities position it for continued growth. Additionally, the company's consistent financial track record instills confidence.

However, investors should carefully consider potential risk factors. Stringent compliance and quality requirements inherent in the business, reliance on a limited number of key clients, and global market exposure all require careful monitoring.

Currently, the IPO is fully priced at a P/E ratio of around 50x. While this may appear fully priced, Azad Engineering's strong market position, promising future growth prospects, and current optimistic market sentiment could still present a potential opportunity for investors. Thus, we suggest Subscribe rating for this IPO.

RBZ Jewellers Limited is one of the leading organized manufacturers of gold jewellery in India, specializing in Antique Bridal Gold Jewellery and distributing it to reputable nationwide retailers and significant regional players in India. It also operates its retail showroom under the brand name “Harit Zaveri” and is an established player in Ahmedabad.

OBJECTS OF THE ISSUE

• Funding working capital requirements of the Company.
• General Corporate Purposes.

KEY MANAGERIAL PERSONNEL

Rajendrakumar Kantilal Zaveri

Promoter and the Chairman & Managing Director of the Company. Being a Promoter, he has been associated with the Company since its incorporation. He has thirty-five years of experience in manufacturing and trading of gold jewellery.

Harit Rajendrakumar Zaveri

Promoter and the Joint Managing Director of the Company. Being a Promoter, he has been associated with the Company since its incorporation and has established a retail division of the Company under the name of “Harit Zaveri Jewellers” in 2014. He has over seventeen years of experience in jewellery industry and has contributed to the growth of the Company.

Heli Akash Garala

Company Secretary and Compliance Officer of the Company. She joined the Company on October 1, 2022. She has almost six years of experience in corporate secretarial, SEBI LODR and other related compliances. Prior to joining this Company, she was associated with Ushanti Colour Chem Limited, Amradeep Industries Limited, Sun and Shine Worldwide Limited and Ultra Denim Private Limited.

Harshvardhan Bhardwaj

Chief Financial Officer of the Company. He joined the Company with effect from March 10, 2023 and was subsequently appointed as Chief Financial Officer of the Company with effect from April 01, 2023. He has an experience of nearly nine years with competencies in the areas of finance and international trade remedies.

COMPANY PROFILE

• RBZ Jewellers Limited holds approximately 1% of the total organized wholesale gold jewelry market in India. It has a history of more than fifteen years in the jewellery industry.
• It designs and manufactures a wide range of Antique Bridal Gold Jewellery which consists of jadau, Meena, and Kundan work, and sells it on a wholesale and retail basis.
• Its customer base in wholesale business includes reputed national, regional, and local family jewellers spread across 20 States and 72 cities within India.
• It has a well-equipped and modern gold jewellery manufacturing facility situated at Sarkhej Gandhinagar Highway, Ahmedabad, Gujarat.
• The Company has a workforce of 189 employees. It also has a permitted capacity of 250 artisans for its manufacturing facility.

COMPETITIVE STRENGTHS

• Organized manufacturing setup under one roof. Client Mix and geographical spread.
• Design and Innovation in its product range.
• Brand is built on the core values of trust, transparency, and innovation. Established systems and procedures to mitigate risk.
• Experienced Promoters with young leadership.

KEY STRATEGIES

• Deepen and penetrate its existing customer relationships.
• Increase its production and enhance its product portfolio.
• Continue to invest in its marketing and brand-building initiatives.
• Strengthen its Inventory Management practices.

KEY CONCERNS

• The Company requires a significant amount of working capital for continued growth.
• It does not currently have exclusive or fixed supply arrangements with any of its suppliers of gold. The Company does not have any formal arrangement with its in-house artisans.
• Its manufacturing facility and showroom are located only in Ahmedabad, Gujarat.
• It derives a significant portion of its revenue from operations from its top 10 customers.
• The business may be subject to fluctuations in prices or any unavailability of gold that it use in its products.
• High Competition.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

RBZ Jewellers manufactures and distributes gold jewelry, serving both wholesale and retail markets. The company's organized manufacturing infrastructure, geographical reach, and risk mitigation systems are promising strengths.

RBZ Jewellers has demonstrated consistent financial growth, reflected in its rising top- and bottom-line figures. However, potential investors should carefully consider key risks such as gold price volatility, significant dependence on a limited number of clients, the absence of formal arrangements with in-house artisans, and intense competition within the industry.

The IPO valuation of 13.4x P/E appears fair on the surface, but the aforementioned risks necessitate a cautious approach. We recommend this IPO only for high-risk investors.

Credo Brands Marketing Limited offers casual clothing for men with its flagship brand "Mufti". The company's product range consisted only of shirts, T-shirts and trousers. Today, however, the company offers a wide range of products including sweatshirts, jeans, cargos, chinos, jackets, blazers and sweaters. The company currently operates 1,773 retail outlets across India (as of May 31, 2023).

OBJECTS OF THE ISSUE

• The IPO is full of Offer for Sale.

KEY MANAGERIAL PERSONNEL

Kamal Khushlan

Chairman and Managing Director of the Company. He has been associated with the Company since its incorporation and has over 25 years of experience in the field of apparel retail.

Poonam Khushlani

Promoter and Whole-Time Director of the Company. Poonam Khushlani has been associated with the Company since its incorporation and is a co- founder of the Company. She has over 25 years of experience in the field of apparel retail.

Rasik Mittal

Chief Financial Officer of the Company. He was appointed as the first auditor of the Company on April 30, 1999. He was the statutory auditor of the Company from the year 2000 until the year 2009. He has also provided certification and advisory services until March 31, 2019.

Sanjay Kumar Mutha

Company Secretary and Compliance Officer of the Company. He previously worked with Mather & Platt Pumps Ltd., Mahindra and Mahindra Limited, CMI FPE Limited and Future Lifestyle Fashions Limited. He has been associated with the Company since January 16, 2023

Biswajeet Ghosa

Vice President of retail and business development of the Company. He has prior experience in working with various industries including textiles, telecom, and fashion. Prior to joining the Company, he was associated with organizations like The Arvind Mills Ltd, Levi Strauss Pvt. Ltd., Shoppers Stop Limited.

COMPANY PROFILE

• Credo Brands Marketing (CBMPL) is engaged in the marketing of men‘s fashion garments in the lifestyle category under the brand name `Mufti’.
• The company‘s product mix has evolved significantly since its inception from consisting of only shirts, t- shirts and trousers in the year 1998 to a wide range of products including sweatshirts, jeans, cargo, chinos, jackets, blazers and sweaters in relaxed holiday casuals, authentic daily casuals to urban casuals, party wear and also athleisure categories as on date.
• The company's reach extends from major metropolitan areas to Tier 3 cities. As of March 31, 2023, March 31, 2022, and March 31, 2021, the company is present in 582, 598 and 569 cities, respectively. The company currently operates 1,773 retail outlets across India (as of May 31, 2023). These include 379 exclusive brand stores (EBOs), 89 large format stores (LFSs) and 1,305 multi-brand stores (MBOs).

COMPETITIVE STRENGTHS

• Strong brand equity with presence across categories. Multi-channel pan-India distribution network.
• Strong in-house design competencies to deliver innovative and high-quality products with end-to- end tech-enabled supply chain capabilities.
• Scalable asset light model. Financially stable business model.

KEY STRATEGIES

• Expand the company’s domestic store network in existing and new cities.
• Deeper penetration to grow sales through online channels by capitalizing on the increasing e- commerce demand in Indian retail.
• Focused expansion of the product portfolio to become a men’s lifestyle brand.
• Leverage technology to improve supply-chain management and enhance customer experience.

KEY CONCERNS

• Company is unable to predict customer demands and maintain optimum inventory level there may be an adverse effect on our results of operations, financial condition, and cash flows.
• The company operates in highly competitive markets in each of the product segments in both offline and online channels and an inability to compete effectively may adversely affect the business.
• Negative reviews from customers may have an adverse impact on brand reputation and ability to market products.
• Business is subject to seasonality. Lower sales and revenue may adversely affect business, financial condition, and results of operations.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Under the brand name "Mufti," Credo Brands Marketing (CBMPL) is in the position of marketing men's fashion apparel in the lifestyle sector. The organization is present throughout India, including tier 3 cities as well as large metropolises.

Even though the company operates in a highly competitive market, its profits have grown significantly. The company had 1807 touchpoints operating in 591 cities.

The IPO is coming with a P/E of 23.22x which looks fairly priced when compared with the industry average. Therefore, we recommend considering this IPO for listing gains as well as for long-term.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

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Happy Forgings Limited is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components. The company manufactures, designs and tests various products such as crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products and valve bodies for different industries and customers.

OBJECTS OF THE ISSUE

• Purchase of equipment, plant and machinery.
• Prepayment of all or a portion of certain outstanding borrowings.

KEY MANAGERIAL PERSONNEL

Paritosh Kumar

Chairman and Managing Director of the Company. He has been associated with the Company since incorporation and accordingly has over 44 years of experience in the industrial sector. He is involved in the strategic decision making of the Company, oversees the Company’s business activities and is involved in setting up the governance standards of the Company.

Ashish Garg

Managing Director of the Company. He has approximately 17 years of experience in the industrial sector. He currently manages the Company’s business operations, financial performance, growth strategies and investments in different capacities and product developments.

Narinder Singh Juneja

Chief Executive Officer and Whole- time Director of the Company. He has over 35 years of experience in the industrial sector. Prior to joining our Company, he served as the assistant engineer with Krishna Forgings.

Pankaj Kumar Goyal

Chief Financial Officer of the Company. He has been associated with the Company since April 1, 2013. In the Company, he handles finance and accounts department. He has over 10 years of experience in the finance sector.

Bindu Garg

Company Secretary and Compliance Officer of the Company. She has been associated with the Company since November 2, 2021 and was appointed as the Company Secretary of the Company since July 12, 2022. In the Company, she handles the secretarial functions. She has over 18 years of experience in the finance and secretarial sector.

COMPANY PROFILE

• The company's customer base includes AAM India Manufacturing Corporation Private Limited, Ashok Leyland Limited, Bonfiglioli Transmissions Private Limited, Dana India, IBCC Industries (India) Private Limited, International Tractors Limited, JCB India Limited, Liebherr CMCtec India Private Limited, Mahindra & Mahindra Limited, Meritor HVS AB, Meritor Heavy Vehicle Systems Cameri SPA, SML ISUZU Limited, Swaraj Engines Limited and others.
• With over 40 years of experience of manufacturing and supplying quality and complex components according to customers' specifications, it has emerged as a leading player in the domestic crank shaft manufacturing industry with the second largest production capacity.
• The company has served customers in various regions including Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom and the United States of America.
• Happy Forging Limited has three manufacturing facilities, two in Kanganwal and one in Dugri, all located in Ludhiana, Punjab. As of FY2023, the operational revenue of the company has increased by 43.02%.

COMPETITIVE STRENGTHS

• Fourth largest engineering-led manufacturer of complex and safety-critical, heavy forged, and high precision machined components in India.
• Integrated manufacturing operations coupled with in-house product and process design capabilities. Diversified business model, well placed to take advantage of potential alternative engine technologies. Long-standing relationships with customers across industries.
• Track record of consistently building capabilities and infrastructure, with a focus on capital efficiency.
• Experienced Promoters and senior management team.

KEY STRATEGIES

• Leverage in-house engineering and product development capabilities.
• Foray into light weight forging and machining with the introduction of aluminum components. Increase the wallet share and acquire new business.
• Capitalize on increasing demand from international markets to grow exports. Expand capacity at its existing manufacturing facilities.

KEY CONCERNS

• Its business largely depends upon its top 10 customers.
• The company does not have agreements having commitment on the part of its customers. It depends on a few suppliers for the supply of steel, its primary raw material.
• Its business is dependent on the performance of certain industries, particularly commercial vehicles. It faces competition in India and overseas in its business.
• Due to the geographic concentration of its manufacturing facilities, its operations are susceptible to local and regional factors.
• Pricing pressure from its customers may adversely affect its business.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Happy Forging is a well-experienced and fourth-largest manufacturer of complex machine components. The company shares along-standing relationship with its large customer base. It has a diversified business model and a track record of consistent growth. The financial performance of the company has also been strong. Further, it has plans for capacity expansion and new business acquisitions.

However, investors should remain mindful of certain business dependencies. Reliance on the top 10 customers, potential pricing pressure from clients, and competition within the industry introduce some risks. Dependence on a limited number of suppliers also merits consideration.

Despite these considerations, Happy Forgings' attractive valuation of 36.44x P/E, coupled with its impressive track record and promising outlook, makes it a worthy investment option for investors seeking exposure to the manufacturing sector.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Suraj Estate Developers Limited is a real estate construction company. The company develops residential and commercial real estate in the South Central Mumbai region. The company's projects include Suraj Eleganza-II and ICICI Apartments, CCIL Bhavan(Phase-I up to 6th floor) and Tranquil Bay-I, Elizabeth Apartment and Mon Desir, St. Anthony Apartments, Lumiere and Tranquil Bay-II, Brahmsidhhi CHS, Jacob Apartments, Suraj Eleganza-I and Gloriosa Apartments and others.

OBJECTS OF THE ISSUE

• Repayment of the aggregate outstanding borrowings.

• Acquisition of land or land development rights.

KEY MANAGERIAL PERSONNEL

Rajan Meenatha konil Thomas

Chairperson and Managing Director of the Company. He has been associated with Company since its incorporation. He has received Lifetime Achievment Award from ET Now in the year 2022. He has over 36 years of experience in various aspects of real estate business.

Rahul Rajan Jesu Thomas

He holds a bachelor’s degree in Commerce from the University of Mumbai and corporate finance certificate from Harvard University. He has received 40 under 40 award from Realty+ in the year 2022. He has over 16 years of experience in various aspects of real estate business.

Shreepal Shah

Chief Financial Officer ofCompany. He holds a bachelor’s degree in Engineering from University of Mumbai and a master’s degree in Business Administration from University of Pune. Prior to joining Company, he was working with P.Raj & Co., Chartered Accountants providing business and finance advisory.

Shivil Kapoor

Company Secretary of the Company. He holds a bachelor’s degree in Commerce from Devi Ahilya Vishwavidyalya, Indore, bachelor’s degree in Law from Devi Ahilya Vishwavidyalaya , Indore and is a member of the Institute of Company Secretaries of India.

Dipen Sheth

Vice President - Sales of the Company. He holds a bachelor’s degree in Commerce from University of Mumbai. Prior to joining Company, he was associated with Kanakia Spaces Private Limited and Oasis Lifespaces Private Limited.

COMPANY PROFILE

• Suraj Estate has developed more than 10lakh square feet of land in Mumbai.

• In the residential portfolio, Suraj Estate is present in the "Value Luxury' and "Luxury' segments invariouspricecategorieswithunitvaluesrangingfromRs.10.00milliontoRs.130.00million.

• The company focuses primarily on value luxury, luxury segments , and commercial segments. SEDL is now venturing into residential real estate development in the Bandra sub-market.

• The company's projects include Suraj Eleganza-II and ICICI Apartments, CCIL Bhavanand Tranquil Bay- I, Elizabeth Apartment and Mon Desir, St. Anthony Apartments, Lumiere and TranquilBay-II, Brahmsidhhi CHS, Jacob Apartments, Suraj Eleganza-Iand Gloriosa Apartments and others.

COMPETITIVE STRENGTHS

• Established brand with along-standing presence in Value Luxury Segment and Luxury Segment in the residential real estate market of South Central Mumbai region
• Diversified portfolio encompassing product offerings across various price points in value luxury and luxury segments.
• Strong expertise in tenant settlement in redevelopment projects Experienced promoters and management team.

KEY STRATEGIES

• Enhance leading market position in the South Central Mumbai region by leveraging Upcoming Projects
• Continue to focus on redevelopment projects through asset - lightmodel
• Continue to expand Land Reserves in the South Central Mumbai region and opportunistically build a position in other sub-markets within the MMR region.
• Continue to selectively develop Commercial Projects in the South Central Mumbai region.

KEY CONCERNS

• Business is dependent on the performance of, and the conditions affecting, the real estate sub- markets in the South-Central Mumbai region.
• Any uncertainty in the title to real estate assets could have a material adverse impact on current and future revenue.
• The industry in which the company operates is competitive and highly fragmented resulting in increased competition that may adversely affect results.
• Any negative cash flows in the future would adversely affect cash flow requirements.

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‍COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Since 1986, SEDL has been a real estate developer in the South Central Mumbai area, working on projects in both the residential and commercial sectors.The residential portfolio of SEDL is situated in the sub-markets of Mahim, Dadar, Prabhadevi, and Parel, which are part of the South Central Mumbai micro market. It has shown consistent growth over the stated periods, and the manage mentis optimistic that this trend will continue.

With extensive market knowledge ,SED Lisa market leader in the combined South-Central Mumbai submarkets; yet, the company must contend with competition from a range of national and regional real estate developers.

The IPO is coming at a P/E of 35.64 which looks fairly priced so we recommend applying for this IPO for listing gains.

‍DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Motisons Jewellers Limited is a Jewellery retail player with a history of more than 2 decades in the jewellery industry. It has experienced entrepreneurs as its Promoters with over 20 years of experience. Its jewelry business includes selling jewellery made of gold, diamond, kundan, and other jewellery products that include pearl, silver, platinum, precious, semi-precious stones, and other metals. Its other offerings include gold and silver coins, utensils, and other artifacts.

OBJECTS OF THE ISSUE

• Funding the working capital requirements of the Company.
• General corporate purposes.

Sandeep Chhabra                          

Promoter, Chairman and Whole Time Director of the Company. He has been associated with the company since 1997. He has more than two decades of experience in the business of manufacturing and retailing of jewellery. He mentors, guides and provides perspective to the Board and management of the Company for strategic planning and enriching the brand for long run.

Sanjay Chhabra

Promoter and Managing Director of the Company. He has been associated with the company since 1997. He has an experience of more than two decades in jewellery industry. Being a part of the top management, Mr. Sanjay Chhabra is responsible for devising long-term business plans, new business initiatives and achieving customer service excellence.

Laksh Chhabra

Joint Managing Director of the Company. He has joined the Company in 2022. He has entered into the business with innovation driven vision and is currently responsible for finance and accounting operations.

Kaustubh Chhabra

Chief Financial Officer of the Company. He holds bachelor’s degree in administration from Kalinga University, Raipur. He has the experience of 5 years. Prior to joining this Company, he has worked as Director of Finance in Khyati Gems DMCC, Dubai. He joined the Company in July 2022.

Naresh Kumar Sharma

Company Secretary and Compliance Officer of the Company. He joined the Company as the Company Secretary and Compliance Officer in September 2023. He has 18 years of experience in secretarial sector. He is responsible for undertaking various functions in the Company including ensuring conformity with the regulatory provisions applicable to the Company.

COMPANY PROFILE

• The Company started its jewellery business in 1997 with a single showroom in Jaipur, Rajasthan and since then, it expanded its network of showrooms and the product portfolio and currently operates 4 showrooms under the “Motisons” brand, located across the city of Jaipur, Rajasthan.
• In addition to selling products at showrooms, it also sells its products through online platform. The Company primarily source finished jewellery from third-party suppliers located across India. Additionally, to cater to the increasing demand in the market, it also engage artisans on job work basis and has its own manufacturing facilities located in Jaipur, Rajasthan.
• Its product profile includes traditional, contemporary, and combination designs across jewellery lines.
• It  has a dedicated design team, focused on developing new products and designs that meet customers’
• requirements.

COMPETITIVE STRENGTHS

• Established brand name with heritage and a legacy of over two decades. Strategic location of showrooms.
• Diversified product portfolio.
• Established systems and procedures to mitigate risks and efficiencies in inventory management. Promoters with strong leadership and a demonstrated track record.

KEY CONCERNS

• The Company is heavily dependent on third parties for supplying its products. All its four showrooms are in one geography namely Jaipur, and Rajasthan.
• It operates in a highly competitive market. Its competitors include both organized pan-India
• Jewellers as well as unorganized local players.
• Any customer complaints or negative publicity or concerns about the purity and quality of its products may have an adverse effect on its business.
• Under-utilization of manufacturing capacity may have a negative impact on the future financial condition of the Company.
• Its income and sales are subject to seasonal fluctuations.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Motisons Limited, a well-established brand exceeding 20 years in the jewelry industry with strategically located showrooms in Jaipur, Rajasthan, The company has a diversified product portfolio and has demonstrated a strong track record of growth.

Motison's commitment to retail network expansion and technology integration further strengthens its growth prospects. However, the highly competitive landscape and dependence on third-party suppliers present key challenges. Additionally, the company is susceptible to negative publicity and seasonal demand fluctuations.

Despite these considerations, the IPO's attractive valuation of 16x P/E offers a degree of risk mitigation. Considering Motisons' strong brand, proven track record, and growth plans, alongside

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for

information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. :  NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Honasa Consumer is the largest digital-first beauty and personal care ("BPC") company in India in terms of revenue. The Company has its flagship brand Mama earth. Along with that the Company has added five new brands to its portfolio, namely The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth's, and has built a 'House of Brands' architecture.

OBJECTS OF THE ISSUE

• Advertisement expenses towards enhancing brand awareness.

• Capital expenditure to be incurred by the Company for setting up new EBOs.

• Investment in the company's Subsidiary, Blunt for setting up new salons.

‍KEY MANAGERIAL PERSONNEL
‍

Varun Alagh

Chairman, Whole-time Director and the Chief Executive Officer of the Company. He has been associated with the Company as a promoter and a director since September 16, 2016. Previously, he has worked with corporations such as Hindustan Lever Limited, Diageo India Private Limited for over a year and Coca-Cola India Private Limited.

Ghazal Alagh

She is a Whole-time Director and the Chief Innovation Officer of the Company. She holds a bachelor’s degree of computer applications from Panjab University, Chandigarh and a certification in software engineering from the academic council of the NIIT Academy, New Delhi. She has been associated with the Company as a promoter and director since September 16, 2016.

Raman Preet Sohi

Chief Financial Officer of the Company. He is responsible for establishing and executing the financial strategy of the Company. He joined the Company on April 27, 2020. Previously, he worked with Drums Food International Private Limited as the chief financial officer for a period of over a year.

Dhanraj Dagar

Company Secretary and the compliance officer of the Company. He joined the Company on May 11, 2022. He holds a bachelor’s degree of commerce from Bangalore University and a bachelor’s degree of law from Maneklal Nanavati Law College, Gujrat University. He was also admitted as an associate member of the Institute of Companies Secretaries of India.

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COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

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FINANCIALS (RESTATED CONSOLIDATED)

COMPANY PROFILE

Honasa’s portfolio of brands with differentiated value propositions includes products in the baby care, face care, body care, hair care, color cosmetics, and fragrances segments.

The Company's success with Mama earth and its ability to identify and cater to emerging trends has enabled it to develop repeatable brand-building playbooks that have helped in G scaling its newer brands at a fast pace.

It has a dedicated in house innovation team, consisting of 47 members, that drives end-to-end ideation and execution of new product launches.

For manufacturing, it has set up an asset-light contract manufacturing model that gives it the benefit of economies of scale at small batch sizes while also providing the flexibility to scale up production as needed.

The Company makes its products available to its customers through omni channel distribution networks across both online and offline touch points.
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COMPETITIVE STRENGTHS

Brand-building capabilities and repeatable playbooks. Consumer-centric product innovation.

Digital-first omni channel distribution. Data-driven contextualized marketing.

Ability to manufacture a diverse range of products and maintain optimal inventory levels. Founder-led company with strong professional management.

KEY STRATEGIES

Expand distribution and brand awareness. Incubate or acquire new engines of growth. Strengthen business efficiency drivers.

KEY CONCERNS

The company does not manufacture any of its products and relies entirely on third-party.

It has recorded losses in the past. Any losses in the future may adversely impact its business. The Company does not hold any patents over its product formulae and has not made any applications in this respect.

It faces intense competition which may lead to a reduction in its market share.

Subsidiaries that it has acquired in the past, have incurred losses for certain historical periods. The company incurs significant advertising expenses.

The company’s majority revenue comes from the sale of products under its flagship Mama earth brand.

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OUTLOOK & VALUATION

Honasa Consumer is a new-age company that is well-known for its flagship brand, Mama earth. The company offers a diverse range of products under its portfolio of six brands.The company has brand- building capabilities and it follows data-driven, context utalized marketing.

However the financial performance of the company has been inconsistent, and it has reported losses in recent fiscals. Subsidiaries that it has acquired have also incurred losses. Additionally, the company does not manufacture its products and relies on third parties for that, and it also does not hold any patents over its product formulas.

The business' return on advertising has also been consistent for a few years, i.e., 2.5%, thus the company's client retention is very low. As it is a loss-making company, we cannot derive its actual P/E, but even after considering its outflow in the latest investment, the company is coming at an extremely high valuation. Thus, I will suggest to Avoid this IPO.

 DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

IRM Energy Limited is a gas distribution company. The company is involved in developing, operating, and expanding of local natural gas distribution network. IRM Energy is a value-driven energy enterprise serving industrial, commercial, domestic, and automobile customers.

OBJECTS OF THE ISSUE

• Funding capital expenditure requirements for the development of the City Gas Distribution network.
• Repayment of all or a portion of certain outstanding borrowings availed by the Company.

KEY MANAGERIAL PERSONNEL

Maheswar Sahu

He is a Non-Executive Director of the Company and the Chairman of the Board of Directors of company. He had active involvement in handling various portfolios in Government including PSU management.

Karan Kausha

He is Chief Executive Officer (CEO) of the Company on July 13, 2020. He has been associated with the Company since September 5, 2016. He has 16 years of experience in the field of General Management, Strategy, Business Development and Project Management.

Harshal Anjaria

Harshal Anjaria was appointed as the Chief Financial Officer (CFO) of the Company on July 13, 2017. He has been associated with the Company since July 11, 2016. He has been associated with the Company since July 11, 2016.

Shikha Jain

Shikha Jain was appointed as the Company Secretary and Compliance Officer of the Company on January 4, 2020 and November 7, 2022, respectively. She has been associated with the Company since September 2, 2019. She has over 5 years of experience in corporate secretarial and other related compliances.

COMPANY PROFILE

• Company develop natural gas distribution projects in the geographical areas (“GAs”) for industrial, commercial, domestic and automobile customers.
• The company has marked its presence in Banaskantha District in the state of Gujarat, Fatehgarh Sahib in the state of Punjab, and Diu & Gir-Somnath in the Union Territory of Daman & Diu and the state of Gujarat.
• The company is fulfilling the natural gas requirements of 48172 domestic clients, 179 industrial units, and 248 commercial clients.
• As of September 2022, the company has 216 CNG gas stations across its operating geographical areas.
• The company has received an award of City Gas Distribution- Growing Company of the Year 2020 from the Federation of Indian Petroleum Industries.
• Company supply natural gas to two primary set of customer segments that are CNG and PNG.

COMPETITIVE STRENGTHS

• Exclusivity in CNG and PNG supply in the awarded geographical areas.
• Diverse customer portfolio and distribution network of CNG and PNG.
• Strong parentage, experienced board and management team and strong execution team.
• Technology adoption and digital initiatives for efficient and optimal operations.
• Connectivity to gas pipelines and establishing cost-effective gas sourcing arrangements.
• Strong financial performance with consistent growth and profitability supported by healthy operating efficiency and favourable regulations.

KEY STRATEGIES

• Expand company’s presence in existing and newer geographical areas through an improved captive distribution channel.
• Infrastructure roll-out for development and operation of the new licensed geographical areas of Namakkal & Tiruchirappalli, Tamil Nadu.
• Technology adoption to increase operational efficiency and enhance customer value.
• Business integration for transition into a complete energy solution provider.

KEY CONCERNS

• Transporting natural gas is hazardous and could result in accidents, which could adversely affect the company’s reputation, business, financial condition, results of operations, and cash flows.
• The Company typically requires 15-18 months to generate revenue in its geographical areas. Any further delay in realizing revenue may affect projections, results of operations, and cash flows.
• Its operations are restricted to defined geographical boundaries and the natural gas requirements in these regions may be affected by various factors.
• Companies require various licenses and approvals for undertaking their businesses.
• The company is heavily reliant on CNG and industrial PNG supply operations and any decrease in the sales may have an adverse effect on the business.
• The company is dependent on Government policies for the allocation of natural gas and the cost of gas supplied for CNG and domestic PNG customers.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

IRM has showcased consistent development of its gas distribution business in its key GAs. The company has a diverse customer portfolio and distribution network of CNG and PNG and a strong relationship with its customers. It has also reported strong financial performance in the last few years, except in FY23, when profit was impacted by a rise in gas prices due to geopolitical situations.

The company is still in the early stages of growth and may be impacted by unforeseen factors and other risks like limited geographic reach, government policies, delayed revenue generation, etc.

The issue is coming at a P/E valuation of 24.12x, which appears fairly priced. Thus, considering all these factors and the positive growth outlook, we will recommend a Subscribe rating to this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Plaza Wires Limited is engaged in the business of manufacturing and selling wires, and selling and marketing LT aluminum cables and fastmoving electrical goods (“FMEG”) under its flagship brand “PLAZA CABLES” and home brands such as “Action Wires” and “PCG”. Its product mix comprises different type of wires and cables, and FMEG such as electric fans, water heaters, switches and switchgear, PVC insulated electrical tape, and PVC conduit pipe & and accessories.

OBJECTS OF THE ISSUE

• Funding capital expenditure requirements of the Company. Funding the working capital requirements of the company.
• General corporate purposes.

Mr. Sanjay Gupta

Managing Director and one of the Promoters of the Company. He has been on the Board of Directors of the Company since March 12, 2008 and was appointed as the Managing Director and Chairman of the Company since March 10, 2022. He possesses approximately 26 years of experience in the electrical industry.

Mrs. Sonia Gupta

Whole-time Director and one of the Promoters of the Company. She has been on the Board of Director of the Company since March 21, 2008. She has approximately 26 years of work experience in the electrical industry. She has been instrumental in planning and formulating the overall business and commercial strategy and managing the financial planning of the Company.

Mr. Ajay Kumar Batla

Chief Financial Officer of the Company. He joined the Company on April 1, 2009. He has been appointed as CFO of the Company with effect from March 10, 2022. He participates in the key decisions of the Company and inter-alia develops financial and tax strategies and monitors budgeting of the Company.

Ms. Bhavika Kapil

Company Secretary and Compliance Officer of the Company. She was appointed as the Company Secretary and Compliance Officer of the Company with effect from March 10, 2022. She is responsible for handling secretarial compliances in the Company. She has a work experience of approximately 3.5 years as she was appointed in Fiscal 2022.

COMPANY PROFILE

• Plaza Wires Limited’s key products in the wires and cables segment include house wires, single & and multicore round flexible industrial cables, and industrial cables for submersible pumps & and motors up to 1.1kv grade.
• The company also provides other wires and cable products such as LT power control cables, TV dish antenna co-axial cables, telephone & and switchboard industrial cables, computer & LAN networking cables, close circuit television cables and solar cables, PVC insulated tape, and PVC conduit pipe & accessories, through third-party manufacturers.
• The Company sells its products through a variety of distribution channels depending on the geography and industry norms and trends. Its business model includes 1) Its dealer & and distribution network. 2) Securing government tenders, and 3) Direct sales to infrastructure projects
• The existing Manufacturing Unit is located at Baddi, Himachal Pradesh with an installed production capacity of 12,00,000 coils per annum.

COMPETITIVE STRENGTHS

• Product portfolio focused on various customer segments and markets. Distribution network.
• Management and dedicated employee base. Strategically located Manufacturing Facility.

KEY STRATEGIES

• Setting up the Proposed Manufacturing Unit to widen its product portfolio and increase its capacity. Enhance its position in the Wires and Cables Industry.
• Expand its dealer network in existing markets and enter new geographical markets. Strengthen its brand value.
• To use technology to further optimize its sales & and marketing operations.

KEY CONCERNS

• Inadequate or interrupted supply and price fluctuation of its raw materials and packaging materials could adversely affect its business.
• The company requires significant amounts of working capital.
• Its existing and proposed manufacturing facilities are concentrated in a single region.
• The industry segments in which it operates are fragmented, and it face competition from large players.
• It relies on certain third-party manufacturers for manufacturing some of its products.
• Pricing pressure from dealers and distributors may affect its gross margins and ability to increase its prices.
• The Company does not have any long-term or definitive agreements with its dealers or customers.

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COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Plaza Wires operates in the wires and cables segment, and it also offers fast-moving electrical goods. The company is focused on various customer segments and has a large distribution network. Its financial performance has been stable.

However the company relies on certain third-party manufacturers for some of its products, and it also faces competition from large players in the industry. Also, it does not have any long-term contracts with its dealers and customers.

Though the IPO is coming at a fair P/E valuation of 21.95x, considering its small issue size, current market conditions, and other related risks, we will avoid this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Valiant Laboratories Limited is an Active Pharmaceutical Ingredient (“API”) / Bulk Drug manufacturing company with having focus on the manufacturing of Paracetamol. The Company manufactures Paracetamol in various grades such as IP/BP/EP/USP, as per the pharmacopeia requirements of its customers.

OBJECTS OF THE ISSUE

• Investment in its wholly-owned subsidiary VASPL for its capital expenditure and working capital requirements.
• General corporate purposes.

Velji Karamshi Gogri

Chairman, Independent and Non- Executive Director of the Company. He has experience of more than 45 years in the Chemical Industry involved in setting up and operating bulk drugs intermediates and fine chemicals manufacturing units and handling different chemical processes and equipment.

Santosh Shantilal Vora

Managing Director of the Company. He has experience of over 7 years in the chemical industry. He is one of the founding members of the Company and looks after the day- to-day affairs of the Company. He handles the responsibility of looking after new product development, infusion and upgradation of technology in operations and production process of the Company.

Paresh Shashikant Shah

Executive Director and Chief Financial Officer of the Company. He has been associated with the Company since 1985. He has experience of over four decades in the chemical industry. He is also one of the founding members of the Company and a director on the Board since incorporation.

Saloni Mehta

The Company Secretary & Compliance Officer of the Company. She is a qualified Company Secretary and is an associate member of the Institute of Company Secretaries of India. She has over two years of experience in the field of company law and SEBI Listing Regulations related compliance. She has been associated with the Company since November 30, 2021

COMPANY PROFILE

• Valiant Laboratories Limited was originally formed in year 1980 as a partnership firm under the name and style of “M/s. Bharat Chemicals” and gradually, commenced manufacturing of Paracetamol by late 1982.
• Its manufacturing unit is located in Palghar, Maharashtra, spread over 2,000 sq. mts. of land with an aggregate annual installed capacity of 9,000 MT per annum.
• Within its Manufacturing Facility located at Tarapur Industrial Area, Palghar, Maharashtra it also has an in-house R&D infrastructure.
• The Company, through its wholly-owned subsidiary, Valiant Advanced Sciences Private Limited intends to establish a greenfield project at Saykha Industrial Area, Bharuch, Gujarat. which shall venture into the manufacture of specialty chemicals and assist it in the backward integration process.

COMPETITIVE STRENGTHS

• Experienced promoters and strong management team.
• Strong financial performance.
• Reducing dependence on import of raw materials.
• Strategically located Manufacturing Facility.

KEY STRATEGIES

• Diversification into new chemistries and industry. Increase in market share.
• Improve operational efficiencies through backward integration of the Proposed Facility. Increase its penetration into international markets including regulated markets.

KEY CONCERNS

• It is a single-product manufacturing company and any changes to the paracetamol API industry or its product demand will adversely affect its business.
• The Company operates out of a single Manufacturing Facility. Any significant social, political, or economic disruption natural calamities, or civil disruptions in this region may impact its business. Subject to strict quality requirements, regular inspections, and audits by our customers and any failure to comply with quality standards may lead to cancellation of existing and future orders. limited number of suppliers for its raw materials which are highly concentrated in the western region of India.
• Dependent on a few customers for a major part of its revenues. The pharmaceutical industry is intensely competitive.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Valiant Laboratories is a 40-year-old pharmaceutical ingredient manufacturing company with a main focus on paracetamol. Currently, it operates from its only manufacturing unit in Palgarh, Maharashtra; however, it is planning to establish a new project in Gujarat through its subsidiary. Its financial performance has been improving, and it has the benefit of experienced promoters.

But it is a single-product manufacturing company. Secondly, it is dependent on a limited number of suppliers as well as customers. Also, there is intense competition in this industry along with high regulations. The issue is coming at a P/E valuation of 15.7, which seems fair, but considering other risks and current market volatility, we will avoid this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

JSW Infrastructure Limited provides maritime-related services including cargo handling, storage solutions and logistics services. The company develop and operates ports and port terminals under Port Concessions. JSW Infrastructure Limited is part of the JSW Group. JSW Infrastructure is the 2nd largest commercial port operator in the country in terms of cargo handling capacity in Fiscal 2022.

OBJECTS OF THE ISSUE

• Payment of borrowings.
• Financing capital expenditure requirements. General corporate purposes.

Sajjan Jindal

Chairman and Non-Executive Director of the Company. He is the vice chairman of the World Steel Association and is also on the board of directors of JSW Energy Limited. He has over 36 years of experience in the manufacturing and steel industry.

Nirmal Kumar Jain

Vice Chairman and Independent Director of the Company. He joined Jindal Iron & Steel Company Limited in 1992 as general manager – finance. He has over 21 years of experience in the financial services sector.

Arun Sitaram Maheshwari

Joint Managing Director and Chief Executive Officer. He has previously been associated with Jindal Strips Limited, Jindal Iron & Steel Company Limited and Jindal Vijaynagar Steel Limited. He has over 30 years of experience in the areas of marketing, import (raw materials), corporate strategy and infrastructure.

Lalit Chandanmal Singhvi

Whole Time Director and Chief Financial Officer of the Company.He has over 21 years of experience in management and finance. He has been associated with our Company since January 15, 2015 as senior vice president – finance and commercial.

Kantilal Narandas Patel

Non-Executive Director of the Company. He has over 28 years of experience in the financial services sector and the steel industry. He was previously associated with JSW Holdings Limited as joint managing director and chief executive officer.

COMPANY PROFILE

• JSW Infrastructure’s operations have expanded from one Port Concession at Mormugao, Goa which was acquired by the JSW Group in 2002 and commenced operations in 2004, to nine Port Concessions as of June 30, 2023 across India.
• It is the fastest-growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled from Fiscal 2021 to Fiscal 2023.
• The company has a diversified presence across India with Non-Major Ports located in Maharashtra and port terminals located at Major Ports across the industrial regions of Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast. The company’s international presence includes 2 terminals at Fujairah and Dibba in the UAE
• The company’s ports and port terminals typically have long concession periods ranging between 30 to 50 years, providing long-term visibility of revenue streams.

COMPETITIVE STRENGTHS

• Fastest growing port-related infrastructure company and second largest commercial port operator in India.
• Strategically located assets at close proximity to JSW Group Customers (Related Parties) and industrial clusters supported by a multi-modal evacuation infrastructure.
• Strong financial metrics with a growing margin profile, return metrics, and growth. Diversified operations in terms of cargo profile, geography, and assets.
• Demonstrated project development, execution, and operational capabilities.
• Benefit from the strong corporate lineage of the JSW Group and a qualified and experienced management team.

KEY STRATEGIES

• Continue to pursue greenfield and brownfield expansions with a focus on Non-Major Ports Pursue acquisition opportunities in similar businesses.
• Increasing third-party customer base.
• Pursue opportunities in synergistic businesses to increase revenue diversification. Focus on building environment friendly and sustainable operations along with growth.

KEY CONCERNS

• A substantial portion of the volume of cargo handled by the company is dependent on a few types of cargo.
• It derives a substantial portion of its revenue from its top five customers Certain of its Subsidiaries have incurred losses in the past.
• It operates in a capital-intensive industry and its current and future expansion plans may require significant capital.
• The company's business operations are subject to a wide range of environmental and other regulations, and any changes to these regulations could increase the company's costs.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

As a division of the JSW Group, JSW Infrastructure offers logistical, cargo handling, and other maritime-related services. The second-largest commercial port operator in India, the corporation has the fastest rate of growth in the infrastructure associated with ports.

The business's financial performance is quite strong, and both its sales and net worth are increasing. The ratio of debt to equity is 0.54, which is quite favorable. The issue size is about 2800 crore, and the IPO is full of fresh issues. last but not least, coming to the IPO valuation the issue is priced at a P/E valuation of about 28x, and EV/EBITDA is 15.17 which looks reasonable.

We will therefore subscribe to this IPO for listing benefits and for long terms due to valuation and current market sentiments.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Updater Services Limited is an integrated business services platform in India offering integrated facilities management (“IFM”) services and business support services (“BSS”) to its customers, with a pan-India presence.

OBJECTS OF THE ISSUE

• Payment of certain borrowings.
• Funding the working capital requirements. Pursuing inorganic initiatives.

Raghunandana Tangirala

Promoter, Chairman and Managing Director of the Company. He is one of the founding directors of the Company and has been on the board since its incorporation. In the Company, he focuses primarily on corporate governance, organizational development, capital allocation and strategic growth of the Company. He has approximately 30 years of experience.

C. R. Saravanan

Director of business operations of the Company. He has been associated with the Company since October 3, 2016. In the Company, he handles the pan India business operations.

Balaji Swaminathan

Chief Financial Officer of the Company. He has been associated with the Company since December 11, 2019. He handles finance & accounts and compliances of the Company. He holds a bachelor’s degree in commerce from University of Madras. He is an associate member of the Institute of Chartered Accountants in India.

Ravishankar B

Company Secretary of the Company. He has been associated with the Company since March 6, 2023. In the Company, he is responsible for secretarial compliances. He holds a bachelor degree in commerce from the University of Madras. He is an associate member of the Institute of Chartered Accountants of India and an associate member of the Institute of Company Secretaries in India.

COMPANY PROFILE

• Updater Services Limited commenced operations in 1990 as a housekeeping and catering services company situated in Chennai, Tamil Nadu.
• Over the years, it has evolved into an integrated business services platform with a pan-India presence serving customers across industries and business service lines.
• In IFM other service segments include Production Support Services, Soft Services, Engineering Services, Washroom and feminine hygiene, Warehouse management, General Staffing, and more. In the BSS segment, the company offers Audit and Assurance services, employee background verification check services, airport ground handling services, sales enablement services, and more through its subsidiaries.
• All these services are B2B services which are primarily in the nature of annuity-based services whereby the customer, once acquired, generates revenue over an extended period of time.
• It served 2,797 customers across various sectors, including certain marquee global and Indian customers.

COMPETITIVE STRENGTHS

• Leading integrated business services platform, operating across diverse segments. Longstanding relationship with customers across diverse sectors leading to recurring business. Track record of successful acquisition and integration of high-margin business segments.
• Pan India presence with a large and efficient workforce. Technology at the forefront of its current and future business.
• Highly experienced Management team with support from PE Investors.

KEY STRATEGIES

• Retain, strengthen, and grow customer base. Grow market share in key segments.
• Introduce new products and services catering to existing and new customer segments. Pursue inorganic growth through strategic acquisitions.
• Continue to improve operating margins.

KEY CONCERNS

• The Company employs a large workforce of 65,627 employees as of June 30, 2023, thus it faces significant employee-related regulatory risks.
• Operational risks, as it provides services in different business environments.
• It witnessed a reduction in its profit in the Financial Year ending March 31, 2023. Any delay or default in receiving payments for services rendered by the Company.
• The Company is exposed to service-related claims and losses or employee disruptions that could have an adverse effect on its business.
• The industries in which it operates are intensely competitive.
• Certain of the services that it offer to its customers are subject to seasonal variations.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

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OUTLOOK & VALUATION

Updater Services Ltd. (UDS) is a leading business services platform that offers a diverse range of services to customers (B2B) across diverse sectors. The company has a pan-India presence and a large workforce.

The financial performance of the company has been mixed, with growing revenue but declining profit. The company faces certain regulatory and operational risks due to the nature of its business. It is also exposed to service-related claims and losses.

Lastly, the issue is priced at a P/E of 44.3x, which is significantly higher than its listed peers. Thus, considering all the factors, we will avoid this IPO.

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DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Manoj Vaibhav Gems 'N' Jewellers Limited is a hyperlocal jewelry retail chain with a presence in the micro markets of Andhra Pradesh and Telangana with 13 showrooms (inclusive of two franchisee showrooms) across 8 towns and 2 cities. It has dedicated branded showrooms and has a strong rural market focus and a dedicated urban focus.

OBJECTS OF THE ISSUE

• To Finance the Establishment of the proposed 8 new showrooms.
• General corporate purposes.

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Bharata Mallika Ratna Kumari Grandhi

Chairperson and Managing Director of the Company. She has 23 years of experience in jewellery industry, having been associated with the Company since 2001. Her knowledge of jewellery industry has contributed to the growth of the Company.

Currently, she looks after the overall operations and gives strategic directions furthering the growth of the Company.

Grandhi Sai Keerthana

Whole-time Director and CFO of the Company. She has been involved in the areas of marketing, operations and product development of the Company.

Currently, she is involved in managing the finances of the Company.

Mr. Gontla Rakhal

Chief Operating Officer of the Company and is responsible for the operations of the Company. He joined the Company on April 01, 2022. He has an overall experience of approximately 9 years. Prior to joining the Company. he worked as an Assistant Manager-Business Development in Vijay Engifab Private Limited.

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Mr Raghunath Jonnavithula

General Manager – Marketing of the Company. General Manager –Marketing of the company. He has an overall experience of approximately 37 years. Prior to joining this Company, he has worked with Cipla Limited and Rexcel Pharmaceuticals Limited.

Mr. Bandari Shiva Krishna

Company Secretary and the Compliance Officer of the Company. He has been associated with the Company since 2014. His primary responsibility is to look after the overall secretarial matters of the Company. He has an overall experience of approximately 13 years.

COMPANY PROFILE

• Vaibhav Jewellers started its jewelry business as a proprietorship concern in the year 1994 from its first retail showroom in Visakhapatnam, Andhra Pradesh.
• It has a market share of ~4% of the overall Andhra Pradesh and Telangana jewelry market and ~10% of the organized market in these two states in FY2023.
• The Company has positioned itself as a retailer focused on ‘Relationships, by Design’ where it focuses on offering designs, high quality, transparency, and customer service to its customers.
• 77% of its retail showrooms are in Tier 2 and Tier 3 cities catering to the semi-urban and rural demand of Andhra Pradesh and Telangana.
• It has designed and developed a website for its online sales in addition to other online marketplaces.

• It procures jewelry on an outright basis from its list of suppliers as well as it supply bullion to job workers for creating varied designs of jewelleries as per its specifications.

COMPETITIVE STRENGTHS

• A key leading home-grown regional brand built on hyperlocal retail strategy. Early mover advantage in the state of Andhra Pradesh.
• Its focus of fortifying its business through Rural Market focus.
• Through its operating ethos of ‘Relationships, by Design’ it offer diverse product designs at varied price range.
• Its go-to-market strategy is its key business enabler thereby providing wider market reach. Experienced promoter and professional senior management team.

KEY STRATEGIES

• Expand in the untapped sections of the micro markets of Andhra Pradesh and Telangana. Focus on further strengthening its rural focus and improving its sales from existing showrooms. Deepen its customer relationships by enhancing focus on its Go-to-Market strategy.
• Focus on augmenting its Brand strength.
• Invest to enhance its product portfolio by offering a wider spectrum of designs.

KEY CONCERNS

• The Company is subject to fluctuations in prices or any unavailability of the raw materials that it uses in its products.
• It has significant working capital requirements.
• It operates in a competitive market and faces competition from other jewelry retailers. The business may be subject to fraud, theft, employee negligence, or similar incidents.
• The current geographic concentration of its operations exposes it to risks related to local economies, and regional downturns.
• The Company does not register its jewelry designs under the Designs Act, 2000 and it may fail to protect its jewelry designs.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Vaibhav Jewellers is a South Indian-based jewelry retail chain. It has a focus on rural and urban markets, with 13 stores currently. It is also planning to expand with eight new stores. The company offers diverse product designs. and it has reported consistent financial performance.

However, this business is subject to price fluctuations for raw materials and requires high working capital as well.

Secondly, it operates in a very competitive market.

The issue is coming at a P/E valuation of 43.69x which seems fully priced. So considering all these factors and current market sentiments, we will avoid this IPO. One may consider other listed peers for better opportunities.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Signatureglobal (India) Limited largest real estate development company in the National Capital Region of Delhi (“DelhiNCR”) in affordable and lower mid-segment housing. It has strategically focused on the Affordable Housing (“AH”) segment (below ₹ 4 million price category) and the Middle Income Housing (“MH”) segment (between ₹ 4 million to ₹2.5 million private-category) through GoI and state government policies.

OBJECTS OF THE ISSUE

• Payment of borrowings.
• Infusion of funds in certain of its Subsidiaries. Inorganic growth through land acquisitions.

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Pradeep Kumar Aggarwal

Chairman and Whole time Director of the Company. He has over eight years of experience in real estate industry. He has been appointed as a director on the Board of the Company since November 2, 2017.

Lalit Kumar Aggarwal

Vice Chairman and Whole-time Director of the Company. He has an experience of over seven years in the real estate sector. He has been appointed as a director on the Board of the Company since February 15, 2022.

Ravi Aggarwal

Managing Direct of the Company. He is a fellow member of the Institute of Chartered Accountants of India. He has over nine years of experience in the real estate industry. He has been appointed as a director on the Board of the Company since November 5, 2015.

Meghraj Bothra

Company Secretary and Compliance Officer of the Company. He joined the Company on May 2, 2022.He has been admitted as a fellow at the Institute of Company Secretaries of India since November 13, 2011.

Manish Garg

Chief Financial Officer of the Company. He joined the Company on October 17, 2016. He holds a bachelor’s degree in commerce (honors) from the University of Delhi. He has been admitted as an associate member of the institute of chartered accountants of India.

Rajat Kathuria

Chief Executive Officer of the Company. He joined the Company on February 1, 2020. He holds a bachelor’s degree in commerce from the University of Delhi and has passed the final examination conducted by the institute of chartered accountants of India.

COMPANY PROFILE

• The Company commenced operations in 2014 through its Subsidiary, Signature Builders Private Limited, with the launch of its Solera project on 6.13 acres of land in Gurugram, Haryana.
• As of March 31, 2023, it had sold 27,965 residential and commercial units, all within the Delhi NCR region, with an aggregate Saleable Area of 18.90 million square feet.
• Most of its Completed Projects, Ongoing Projects, and Forthcoming Projects are located in Gurugram and Sohna in Haryana, with 88.49% of its Saleable Area located in this region as of March 31, 2023, and almost all of its projects have been, or are being, undertaken under the AHP or the DDJAY -APHP. It has adopted an integrated real estate development model, with in-house capabilities and resources to execute projects from inception to completion which enables it to offer its projects at competitive prices.
• The Company has an extensive distribution network focused on the customer segments it targets, with 593 channel partners and an in-house team of 41 employees engaged in direct sales and 100 employees for indirect sales, as of March 31, 2023.

COMPETITIVE STRENGTHS

• Largest affordable and lower-mid and mid-segment real estate developer in Delhi NCR.
• Well-established brand, strong distribution network, and digital marketing capabilities translate into faster sales.
• Fast growing with the ability to scale up rapidly.
• Ability to provide aspirational lifestyle and amenities at affordable pricing and strategic locations. Standardized product offerings, quick turnaround, and end-to-end in-house project execution expertise. Positive operating cash flows with low levels of debt.

KEY CONCERNS

• The Company has incurred a net loss and negative Net Worth in the past.
• Its business is significantly dependent on the performance of the real estate market in the Delhi- NCR region.
• Changes in government policies may adversely affect its business.
• Significant increases in prices or shortage of or delay or disruption in the supply of, construction materials, contract labor, and equipment could adversely affect its estimated construction cost. Competition from other renowned brands.
• The Company is required to obtain statutory and regulatory approvals and permits to operate its business. Any delay or failure in that may affect the business.

COMPARISON WITH LISTED INDUSTRYPEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Signature Global is the largest real estate player in Delhi, NCR, operating in affordable and lower-mid-segment housing. It is a well-known brand with a strong distribution network. The company also has large projects on hand.

But it has been a loss-making business for the last few years. Secondly, its major business is focused on a limited region. Changing government policies may also impact its business adversely.

As it has been at a loss, we cannot define its P/E valuation; however, its discounted revenue multiple is 3.48x, which is lower than the industry average. However, due to its current financial condition and other risk factors, we will avoid this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

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Sai Silks (Kalamandir) Limited is amongst the top retailers of ethnic apparel, particularly sarees, in south India. Through its four store formats, i.e., Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall as well as through e-commerce channels. It offers its products to various segments of the market including premium ethnic fashion, ethnic fashion for middle income, and value-fashion, with a variety of products across different price points, thereby catering to customers across all market segments.

OBJECTS OF THE ISSUE

• Funding capital expenditure towards setting up 25 new stores and two warehouses.
• Funding the working capital requirements of the company. Payment of borrowings.

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KEY MANAGERIAL PERSONNEL

Ravindra Vikram Mamidipudi

Chairman & Independent Director of the Company. He has been a Director of the Company since February 18, 2022. He is a fellow member of the Institute of Chartered Accountants of India. He has approximately four decades of experience in finance sector. He is a partner at M. Anandam & Co., Chartered Accountants since 1981.

Nagakanaka Durga Prasad Chalavadi

Managing Director of the Company. He is also one of the Promoters of the Company and has been associated with the Company since its incorporation. He has more than 16 years of experience in the retail sector and is responsible for the overall management, finance, internal controls and security systems of the Company.

Konduri Venkata Lakshmi Narasimha Sarma

Chief Financial Officer of the Company. He has been associated with the Company since March 1, 2022. He has been associated with the Company since March 1, 2022. He holds a bachelor’s degree in commerce from Osmania University. He is also a fellow member of the Institute of Cost Accountant of India. He has over 35 years of experience in Corporate Finance.

Matte Koti Bhaskara Teja

Company Secretary and Compliance Officer of the Company. He has been associated with the Company since November 5, 2018. He is also an associate member of the Institute of Company Secretaries of India. He has approximately 8 years of experience in secretarial work.

COMPANY PROFILE

• SSKL has a network of 54 stores as of July 31, 2023, in four south Indian states, i.e., Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu.
• It offers a diverse range of products which includes various types of ultra-premium and premium sarees suitable for weddings, and party wear, as well as occasional and daily wear; lehengas, men’s ethnic wear, children’s ethnic wear, and value fashion products comprising fusion wear and western wear for women, men and children.
• It offers one of the widest portfolios of saree SKUs among women’s apparel brands in India with large retail outlets that provide customers with a wide variety of options in ethnic wear across various price points.
• The Company directly purchases the products from the master weavers, weavers, and vendors. It manages its inventory and logistics as well as its entire supply chain for all its channels from four of its warehouses in Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu, and it

COMPETITIVE STRENGTHS

• Among the leading ethnic and value-fashion retail companies in South India.
• Scalable model, well positioned to leverage growth in the ethnic and value-fashion apparel industry in India.
• Strong presence in offline and online marketplace with an omni-channel network.
• Track record of growth, profitability, and unit economics with an efficient operating model. Experienced Promoter, management and in-house teams with proven execution capabilities.

KEY STRATEGIES

• High competition, pricing pressures, and fluctuating demand could hurt sales.
• The company relies heavily on sales in Southern India, which could be affected by adverse developments in the region.
• Maintaining sufficient inventory leads to high costs.
• The company operates in a fragmented market with unorganized competition.
• The company procures products from third-party vendors without long-term agreements. The growth of online retailers and discounting trends could hurt pricing ability.
• Sales are subject to seasonality.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

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OUTLOOK & VALUATION

SSKL is the leading ethnic apparel retailer in the southern region of the country, with a network of 54 stores. The company has a strong presence in the offline and online markets with a track record of consistent growth and profitability. It is also strategizing to expand its footprint with a plan to set up 25 new stores.

However, concerns related to high competition, dependency on third-party vendors, regional concentration, and high cost are also there.

The issue is coming at a P/E valuation of around 27.3x, which seems fairly priced. Thus, after checking all the factors, this IPO could be considered for listing gain and long-term holding.

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DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research

Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532

CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Zaggle Prepaid Ocean Services Limited is a leading player in spend management with a diversified offering of fintech and SaaS products and services to corporates. Their SaaS platform is designed for (i) business spend management (including expense management and vendor management); (ii) rewards and incentives management for employees and channel partners; and (iii) gift card management for merchants, which they refer to as customer engagement management system (CEMS).

OBJECTS OF THE ISSUE

• Expenditure towards Customer acquisition and retention.
• Expenditure towards the development of technology and products.
• Payment of certain borrowings availed by the company.

Raj P Narayanam

Executive Chairman of the Company. He has been on the Board of the Company since April 30, 2012. He completed post graduate diploma in business management with specialisation in finance from the FORE School of Management, New Delhi. He has experience in the technology and fintech industry.

Hari Priya

Company Secretary and Compliance Officer of the Company. She joined the Company on January 18, 2022. Prior to joining this company, she worked with Axis Clinicals Limited as assistant general manager- company secretary, Gayatri Projects Limited as assistant company secretary and Spandana Sphoorty Financial Limited as deputy company secretary and manager– corporate affairs

Avinash Ramesh Godkhind

Managing Director and Chief Executive officer of the Company. He has been on the Board of the Company since May 7, 2012. He holds a bachelors’ degree in engineering from Bangalore University, and a masters’ degree in business administration from the University of Chicago. Prior to this, he worked as an Assistant Vice President at Citibank N.A., India.

Venkata Aditya Kumar Grandhi

Chief Financial Officer of the Company. He joined the Company as vice president-finance and accounts on May 9, 2022 and was promoted as the Chief Financial Officer on August 25, 2022. He is a member of the Institute of Chartered Accountants of India, New Delhi. Prior to joining this Company, he worked at Spandana Sphoorty Financial Limited.

COMPANY PROFILE

• Zaggle Prepaid Ocean Services is a leading player in spend management, with more than 50 million prepaid cards issued in partnership with banking partners and more than 2.27 million users served, as of March 31, 2023’.
• The Company’s network of corporate customers (“Customers”) covers the banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and automobile industries, among others. The Company has relationships with brands such as TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL (RP – Sanjiv Goenka Group), Hiranandani group, Cotiviti, and Greenply Industries.
• Its core product portfolio includes i) ‘Propel’ (a corporate SaaS platform for channel rewards and incentives, employee rewards and recognition), ii) ‘Save’ (a SaaS-based platform and a mobile application to offer expense management solution), iii) ‘CEMS’ (a customer engagement management system), iv) ‘Zaggle Payroll’ Card (a prepaid payroll card), and v) ‘Zoyer’ (an integrated data-driven, SaaS- based business spend management platform).

COMPETITIVE STRENGTHS

• Differentiated SaaS-based fintech platform, offering a combination of payment instruments, mobile applications, and API integrations.
• In-house developed technology and strong network effect.
• Business model with diverse sources of revenue and low customer acquisition and retention costs. Diversified customer relationships across sectors along with preferred banking and merchant partnerships.
• Seasoned management team with deep domain expertise supported by a professional workforce.

KEY STRATEGIES

• Continue to increase the Customer base of corporate accounts, SMB accounts, start-ups and merchants.
• Continue to scale and expand by increasing user penetration and cross-selling within the existing Customer base.
• Continue to innovate to introduce new products and use cases.
• Leverage strategic partnerships with financial institutions and merchants.

KEY CONCERNS

• The Company is dependent on their relationships with their banking partners, for a substantial portion of their revenue, which is derived from Program Fees generated from their arrangements with such banking partners.
• The Company is dependent on third-party Payment Networks, channel partners, and third-party providers for various aspects of its business and its growth.
• It may encounter challenges with the adoption and usage of the products if it is not able to successfully integrate with other software applications.
• The Company operates in a highly competitive industry.
• It experienced negative operating cash flows in Fiscal 2023 and negative net worth as of March 31, 2022, and March 31, 2021.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

There are no directly listed companies in India, or internationally, whose business portfolio is comparable with that of our business and comparable to Zaggle Prepaid Ocean Services Limited’s scale of operations. Hence, it is not possible to provide an industry comparison in relation to this Company.

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Zaggle Prepaid Ocean Services Limited is a uniquely positioned player in the fintech industry, offering a diversified suite of products and services. The company has a SaaS-based fintech platform and in- house-developed technology. Additionally, the company has diverse sources of revenue and a low-cost operation model.

However, there are some concerns about the company's financial performance. The company has a major dependency on third parties, and it has faced negative cash flow and a decline in its profitability in recent years. Additionally, the company operates in a highly competitive industry.

The IPO is coming at a P/E valuation of 66.6x, which is significantly higher than the valuations of its listed peers. The company's debt-to- equity ratio is also high.

Overall, we believe that the risks outweigh the potential rewards for this IPO. We would avoid investing in this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

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SAMHI Hotels Limited is a branded hotel ownership and asset management platform in India. SAMHI Hotels has a portfolio of 4,801 keys across 31 operating hotels in 14 of India's key urban consumption centers, including Bengaluru, Hyderabad, National Capital Region (NCR), Pune, Chennai and Ahmedabad, as of March 31, 2023. The company also has 2 hotels under development with a total of 461 keys in Kolkata and Navi Mumbai.

OBJECTS OF THE ISSUE

• Payment of certain borrowings availed of by the company and the subsidiaries.
• General corporate purposes.

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Ashish Jakhanwala

Chairman, Managing Director and Chief Executive Officer of the Company. He has been a member of the Board since December 28, 2010. He has experience in the field of hotel operations, design, consulting and investment

Gyana Das

Executive Vice President and Head of Investments of the company. He joined the Company on February 8, 2011.

Previously, he was associated with Inter Globe Hotels Private Limited.

Sanjay Jain

Senior Director - Corporate Affairs, Company Secretary and Compliance Officer of the Company. He is a member of the Institute of Company Secretaries of India and a member of the Institute of Cost and Works Accountants of India.

Rajat Mehra

Chief Financial Officer of the Company. He joined our Company on December 11, 2012. Previously, he was associated with Religare Corporate Services Limited as an executive vice president finance change management

Tanya Chakravarty

General Counsel of the Company. She joined the Company on May 2, 2017. Previously, she was associated with Phoenix Legal, Vaish Associates Advocates and Unitech Limited

COMPANY PROFILE

• The company has a branded hotel ownership and asset management platform in India, with the third- largest inventory of operational keys.
• Within 12 years of starting business operations, the Company built a portfolio of 3,839 keys across 25 operating hotels in 12 of India’s key urban consumption centers, including Bengaluru, Hyderabad, National Capital Region, Pune, Chennai, and Ahmedabad, as of March 31, 2023.
• Pursuant to the completion of the ACIC Acquisition on August 10, 2023, the company portfolio has further increased to 4,801 keys across 31 operating hotels.
• The company categorizes its hotel portfolio into three distinct hotel segments based on brand classification-Upper Upscale, Upper Mid-scale, and Mid-scale.

COMPETITIVE STRENGTHS

• Company’s ability to acquire dislocated hotels and demonstrated track record to re-rate hotel performance through renovation and/or rebranding.
• The company’s portfolio’s scale and diversification are further enhanced by sector tailwinds. The track record of managing hotels efficiently.
• It’s ability to create operating efficiencies and long-term performance using analytics tools. The company’s has strong governance and seasoned management team.

KEY STRATEGIES

• Its hotels are positioned to benefit from favorable demand trends in the hospitality industry and enhance operating efficiencies.
• Complete development of identified opportunities that are currently under development. Integrate the ACIC Portfolio to drive enhanced performance.
• Pursue growth opportunities via programmatic capital deployment, tactical mergers and acquisitions.
• Ensure disciplined capital allocation and reduction of debt.

KEY CONCERNS

• Business is subject to seasonal and cyclical variations that could result in fluctuations in results of operations.
• A significant portion of revenues are derived from a few hotels and from hotels concentrated in a few geographical regions.
• Company experienced restated losses and negative net worth in recent years.
• The hospitality industry is intensely competitive and company inability to compete effectively may adversely affect business, results of operations and financial condition.
• Company subject to extensive government regulation with respect to safety, health, environmental, real estate, excise and labor laws.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

SAMHI Hotels Limited is a branded hotel ownership and asset management platform in India. The company has a track record of successfully renovating or rebranding hotels to improve performance, and it actively pursues growth prospects through tactical mergers, acquisitions and programmatic capital investment.

SHL, is currently a loss-making hospitality company. The company's financial performance has been poor for the last three years, but it is making progress on cutting losses. But business is subject to seasonal and cyclical variations that could result in fluctuations in the results of operations.

The company is loss-making, so we do not have a P/E ratio. However, its sales multiple is 3.7X, which is below when compared to the industry average. However, as the company is in financial trouble, we won't apply for this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.