How AI is Changing Commodity Trading in India

सोने की कीमतों में पिछले सप्ताह दबाव रहा लेकिन कई राज्यों में ओमीक्रॉन वायरस के कारण शुरू हुई सख्ती से इसके भाव सपोर्ट लेते दिखे है। जबकि पिछले सप्ताह में चांदी के भाव में हल्की तेज़ी दर्ज की गई है जो इस सप्ताह के लिए सोने और चांदी के भाव के लिए तेज़ी के संकेत है। क्रिसमस छुट्टियों के कारण सोने और चांदी के भाव अभी सीमित दायरे में बने होने के साथ अस्थिर भी है जिसमे स्थिरता के बाद तेज़ी आ सकती है।

ओमीक्रॉन के मामले अब यूरोप के बाद भारत और अन्य एशिया देशो में बढ़ने लगे है जिसके कारण आर्थिक गतिविधियों में रुकावटें शुरू हो सकती है जो सोने और चांदी में निवेश के लिए सेफ हेवन मांग को बढ़ा सकते है। डॉलर जो सोने के विपरीत दिशा में चलता है, पिछले सप्ताह नरमी रही। अध्ययन से यह भी पता चला है कि ओमाइक्रोन संक्रमण से अस्पताल में भर्ती होने की संभावना कम है, लेकिन यह भी कहा गया है कि इसके संक्रामक होने के कारण गंभीर मामले अभी भी महत्वपूर्ण संख्या में उत्पन्न हो सकते हैं।

नवीनतम कोविड-19 के प्रकोप को रोकने के लिए चीन ने गुरुवार को शीआन शहर को बंद कर दिया ताकि पश्चिमी शहरों में वायरस को फैलने से रोका जा सके। शहर के 130 करोड़ निवासियों को अपने घरों में रहने और ज़रूरतों के लिए हर दूसरे दिन एक व्यक्ति को बाहर जाने के लिए कहा गया है। चीन का यह लॉकडाउन 2020 की शुरुआत की महामारी के बाद से सबसे बड़ा है।

पिछले सप्ताह अमेरिका से जारी होने वाले कोर पीसीई प्राइस इंडेक्स, बेरोज़गारी के दावे  और घरो की बिक्री के आकड़ो से कीमती धातुओं को सपोर्ट मिला है। कॉमेक्स वायदा सोना पिछले सप्ताह 6 डॉलर तेज़ होकर 1810 डॉलर प्रति औंस के स्तरों पर पहुंच गया है। कॉमेक्स वायदा चांदी भी 50 सेंट मजबूत होकर 22.90 डॉलर के स्तरों पर रही।

तकनिकी विश्लेषण

इस सप्ताह सोने और चांदी के भाव सकारात्मक दायरे में रह सकते है।  सोने में 47800 रुपये पर सपोर्ट और 49000 रुपये पर प्रतिरोध है। चांदी में 61000 रुपये पर सपोर्ट और 63500 रुपये पर प्रतिरोध है।

RatingSUSBCRIBE Issue OfferIssue Opens onDec 14, 2021Issue Close onDec 16, 2021Total IPO size (cr)588.22Fresh issue (cr)240.00Offer For Sale (cr)348.22Price Band (INR)555-585Market Lot25Face Value (INR)2Retail Allocation35%Listing OnNSE, BSEObjects of the issue ⮚ For Repayment of borrowings ⮚ For Funding working capital requirementIssue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion ⮚ 35Shareholding (No. of Shares)Pre Issue 47,784,086Post Issue 51,886,650Indicative TimetableFinalisation of Basis of Allotment 21-12-2021Refunds/Unblocking ASBA Fund 22-12-2021Credit of equity shares to DP A/c 23-12-2021Trading commences 24-12-2021

Established in 1985, Data Patterns is a defence and aerospace electronics solutions provider specializing in indigenously designed defence equipment. The firm provides equipment for all types of defence and aerospace systems, including space, air, land, and sea.

Electronic hardware design and development, software and firmware design and development, mechanical design and development, product prototype design and development, functional testing and validation, environment testing and verification, and engineering services opportunities are among the company's core competencies.

⮚ It was one of the fastest-growing firms in terms of revenues among significant Indian defence and aerospace companies between Fiscal 2019 and Fiscal 2021, according to the Company Commissioned  F&S Report, with a revenue increase of 71%.

⮚ The company's strengths throughout the gamut of defence and aerospace electronics solutions from design to delivery give it a  considerable competitive edge in terms of overall development time and cost, as well as competitive pricing when bidding on defence and aerospace contracts.

⮚ The company has design capabilities across the entire spectrum of strategic defence and aerospace electronics solutions including processors, power, radio frequencies (“RF”) and microwave,  embedded software and firmware and mechanical engineering.

⮚ The company is upgrading and expanding its facility, with a  proposed doubling of available floor area and manufacturing capacity, as well as the addition of large and heavy equipment handling capability, large radar and mobile electronic warfare system integration, and a satellite integration facility. Its testing capabilities are also proposed to be further strengthened.

Outlook & Valuation:

In the last 3 years, the company has shown strong growth in revenue where it grew at a CAGR of 19% from Rs 132.50 cr to Rs 226.55 cr over the period of FY19 to FY21, during the same period profit has grown at a CAGR of 97% from Rs 7.70 cr in FY19 to  Rs 54.6 cr in FY21. The margins of the company are also expanding.

As part of the 'Make in India' initiative, the company will bid on bigger,  more challenging contracts. Data Patterns increased its net profitability by approximately 158% between FY20 and FY21.

We believe that the company has enormous potential to grow rapidly thanks to the government's focus on Defense and Aerospace. The IPO is priced at a  49x PE and 13x P/BV to its FY21 earnings at an upper price band of Rs  585. Attractiveness in the defence sector is likely to boost sentiment for the IPO.

IPO Note

DATA PATTERNS (INDIA) LIMITED

KEY MANAGERIAL PERSONNEL

⮚ Srinivasagopalan Rangarajan is the Chairman and Managing Director of the Company. He has been associated with the Company since its incorporation. He holds a Bachelor’s Degree of Technology in Chemical Engineering and he has over three decades of experience in business development, corporate affairs, finance and marketing.

⮚ Venkata Subramanian Venkatachalam is the Chief Financial Officer of the Company. He is a fellow member of the  Institute of the Chartered Accountants of India. He has over two decades of experience in the finance sector.

⮚ Manvi Bhasin is the Company Secretary and Compliance Officer of the Company. She is an associate of the  Institute of the Company Secretaries of India. She has three years of experience in legal and secretarial matters.

⮚ Vijay Ananth K is the Chief Operating Officer and Chief Information Security Officer of the Company. He has more than two decades of experience in software engineering and product management.

⮚ Desinguraja Parthasarathy is the Chief Technical Officer of the Company. He has 32 years of experience in  Product Development.

⮚ Thomas Mathuram Susikaran is the Senior Vice President-Business Development. He holds a bachelor’s degree in engineering. He has over 21 years of experience in business development and marketing.

⮚ Nandaki Devi Ramachandracharya is the Deputy General Manager and Management Representative Quality  Management System. She has 22 years of experience in test engineering.

COMPETITIVE STRENGTHS

⮚ Integrated and strategic defence and aerospace electronics solutions provider based in India, well-positioned to profit from the Make in India initiative.

⮚ Innovation focused business model.

⮚ Sound order book with orders from several prestigious customers in the Indian defence ecosystem. ⮚ The modern certified manufacturing facility of international standards.

⮚ Track record of profitable growth.

⮚ The experienced management team and skilled workforce.

KEY STRATEGIES

⮚ Continue expansion of product portfolio with complex technology-based products.

⮚ Focus on repeat large volume production orders.

⮚ Improving manufacturing infrastructure and enhancing design and development capabilities

⮚ Augmenting the design and development capabilities and expanding manufacturing infrastructure

⮚ Focus on increasing revenues by leveraging core competencies and growing the services business

⮚ Focus on increasing export business

KEY CONCERNS

⮚ The company depends on a limited number of customers for major business.

⮚ Subject to strict quality requirements, customer inspections and audits, and any failure to comply with quality  standards may lead to cancellation of existing and future orders

⮚ Failure to qualify for or win bids could have an adverse effect on its business.

⮚ If it does not maintain its technical information and processes discreet, it may lose its competitive advantage.

⮚ The company has significant working capital requirements.

IPO Note

DATA PATTERNS (INDIA) LIMITED

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2021)

Name of the Company EPS (Basic) NAV P/E Operational Rev (cr) RoNW Data Patterns (India) Ltd 11.89 44.38 49 223.95 26.79% Peer Group MTAR Technologies Ltd 16.99 154.99 83.56 246.43 9.66%Astra Microwave Products Ltd 3.33 64.51 51.28 640.91 5.16%Centum Electronics Ltd 13.31 173.14 34.90 817.43 5.40%Bharat Electronics Ltd 8.62 45.39 23.49 14,108.69 18.99%

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 17.00 17.00 17.00Other Equity 2060.70 1517.95 1311.93Net Worth 2077.70 1534.95 1328.93Total Borrowings 332.21 605.66 601.33Revenue from Operations 2239.50 1560.98 1310.63EBITDA 945.88 472.50 269.93Profit Before Tax 745.34 284.29 103.59Net Profit for the year 555.71 210.48 77.02

Issue Offer

Issue Opens on Dec 15, 2021Issue Close on Dec 17, 2021 Total IPO size (cr)125.96 Fresh issue (cr) 113.44 Offer For Sale (cr) 12.53 Price Band (INR) 262-274 Market Lot 50 Face Value (INR)10 Retail Allocation 10% Listing On NSE, BSE

Objects of the issue

⮚ For funding the working capital.

‍⮚ Capital expenditure for expansion.

Issue Break-up (%)

QIB Portion 75 NIB Portion 15 Retail Portion 10

⮚ Shareholding (No. of Shares)

Pre Issue1,42,34,947Post Issue1,83,74,947

Indicative Timetable

Finalization of Basis of Allotment 22-12-2021 Refunds/Unblocking ASBA Fund 23-12-2021 The credit of equity shares to DP A/c 24-12-2021 Trading commences 27-12-2021

Registered in 2019, HP Adhesives Limited is an adhesives and sealants company. The company manufactures a wide range of consumer adhesives and sealants such as PVC, cPVC, and uPVC solvent cement,  synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants, and PVC pipe lubricants.

These adhesives and sealant products have applications in multiple industries such as plumbing and sanitary, drainage and water distribution, general-purpose building/ construction, and interior operations as well as for glazing operations, woodwork, footwear, automotive, foam-furnishing,  and other varied industries.

⮚ Apart from the above products, the company also sells ancillary products like ball valves, thread seals, and other tapes and FRP products for drainage and architectural solutions.

⮚ The company has grown from a single product to a multi-product adhesives company with sales across India (through a pan-India distribution network) and also in international markets.

⮚ Over the years, Company’s brands “HP” and “Strong Weld” in the PVC adhesives product category have gained increasing acceptance on account of high product quality and efficient pricing.

⮚ The company has a solid business model that focuses on consistently expanding its product portfolio by introducing new product categories and SKUs to cater to a wide range of end-use applications and selling them through its distribution network across India.

⮚ As of September 30, 2021, its distribution network comprised of 4 depots situated in Delhi, Kolkata, Bengaluru, and Indore and more  than 750 distributors who cater to more than 50,000 dealers in  India

⮚ The company wants to expand its manufacturing capacity at Village Narangi, Raigad, Maharashtra to cater to the growing demand for several product categories.

Outlook & Valuation:

In the last 3 years, the company has shown stable growth in revenue where it grew from Rs 87.97 cr to Rs 123.87 cr over the period of FY19 to FY21, during the same period profit has grown from Rs 4 cr in FY19 to Rs 10.05 cr in FY21, but the company faced a huge loss of Rs. (4.67) cr in FY20 on the back of exceptional item.

The industry is expected to grow at a CAGR of 6-8% while the company is in a growth phase and is expanding installed capacities for its product lines and is also expanding its portfolio.

The IPO is valued at a PE of 35x and  P/BV of 28x to its FY21 earnings. However, if we annualized FY22  earnings PE and P/BV work out to be 81x and 10.38x which is in line with the peer. Due to its small size, the SME-IPO is going to be listed in the  T2T segment.

We have an "AVOID" rating for the IPO.

For additional information & risk factors please refer to the Red Herring Prospectus

IPO Note

HP ADHESIVES LIMITED

KEY MANAGERIAL PERSONNEL

⮚ Anjana Haresh Motwani, with over 40 years of experience in the adhesive industry, is currently designated as the  Executive Director and Chairperson of the Company.

⮚ Karan Haresh Motwani currently holds the position of Managing Director of the Company. He was admitted to the partnership M/s. HP International in 2007.

⮚ Mr Mihir Shah, is the chief financial officer of the Company. He has been associated with the Company since  May 2021. He has an overall experience of nearly 15 years in investment banking.

⮚ Ms Jyoti Nikunj Chawda is the Company Secretary & Compliance Officer of the Company. She is a commerce and law graduate from the University of Mumbai and holds an overall experience of nearly 7 years in secretarial and compliance functions.

⮚ Ms Nidhi Haresh Motwani is the Vice President – Operations of the Company, She has been associated with the Company since February 2016. She has an overall experience of 10 years in the fields of branding, marketing, and sales.

⮚ Mr Saurabhraj Bhatt is the Vice President – Sales and Marketing, of the Company. He has an overall experience of about 22 years. He handles the product promotion, branding, sales, and marketing functions of the Company.

⮚ Mr. K. P. Unnikrishnan is the Assistant Vice President – New Product Development of the Company. He has a  multi-functional experience of 36 years

⮚ Mr. Sabrinath Gopalkrishnan Nair is the Senior Manager – Purchase of the Company. He has experience of over 28 years in accounts, inventory control and logistics operations.

COMPETITIVE STRENGTHS

⮚ Consistently growing company with established brand presence

⮚ Wide Product Portfolio and Multiple SKUs

⮚ Focusing on multiple end-user industries

⮚ Extensive distribution network across India catering to customers.

⮚ Efficient manufacturing set-up with scope for expansion

⮚ Effective quality checks

⮚ R&D set up for constant product improvement and new product development

KEY STRATEGIES

⮚ Further, strengthen brand image

⮚ Expansion of manufacturing facility

⮚ Further expansion of distribution network across India and globally

KEY CONCERNS

⮚ The impact of the COVID-19 pandemic on business and operations is uncertain.

⮚ The company does not have any long-term arrangements with its distributors.

⮚ Restrictions on the import of raw materials may adversely impact the business.

⮚ Prices of the principal raw materials are subject to changes in the prices of crude oil.

⮚ The company has incurred losses in the recent past.

IPO Note

HP ADHESIVES LIMITED

COMPARISON WITH LISTED INDUSTRY PEERS (AS OF 31ST MARCH 2021)

Name of the Company EPS (Basic) NAV P/E Total Income (Mn) RoNW (%)HP Adhesives Limited 7.74 9.74 35 118.16 79%Peer GroupPidilite Industries Limited 22.26 114.78 81.28 7293.00 114.78

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Lakh) FY 2021 FY 2020 FY 2019Equity Share Capital 1,300.00 1,300.00 1,300.00Other Equity (34.12) (1,051.56) 166.23Net Worth 1,265.88 248.44 1,466.23Total Borrowings 3,138.52 3,405.98 2,358.33Revenue from Operations 11,816.16 9,547.93 8,741.75EBITDA 1,768.67 691.95 870.09Profit Before Tax 1,323.02 (536.06) 405.91Net Profit for the year 1,005.96 (467.05) 400.07

Rating SUBSCRIBE Issue Offer Issue Opens on Dec 13, 2021Issue Close on Dec 15, 2021Total IPO size (cr) 1,398.30Fresh issue (cr) 600.00Offer For Sale (cr) 798.30Price Band (INR) 780-796Market Lot 18Face Value (INR) 2Retail Allocation 35%Listing On NSE, BSE

‍Objects of the issue

‍⮚ For funding working capital requirement of the subsidiary.

⮚ For general corporate purposes. Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion

⮚ Shareholding (No. of Shares)Pre Issue 111,761,165Post Issue 119,305,676

‍Indicative Timetable

‍Finalisation of Basis of Allotment 20-12-2021Refunds/Unblocking ASBA Fund 21-12-2021Credit of equity shares to DP A/c 22-12-2021Trading commences 23-12-2021

Incorporated in 2006, Medplus Health Services is India's second-largest pharmacy retailer in terms of the number of stores and revenue.

The company offers pharmaceutical and wellness products i.e. medicines,  vitamins, medical devices, test kits, and fast-moving consumer goods i.e. home and personal care products, baby care products, sanitisers, soaps,  and detergents, etc.

It is also the first pharmacy retailer in India to offer an omnichannel platform wherein customers can purchase products through stores, place orders over the telephone, online orders, and a  Click and Pick facility.

⮚ According to the Technopak Report, it is India's first pharmaceutical retailer to offer an omnichannel platform. This approach aims to broaden and expand the Company's client base while also enhancing  "convenience" as a primary customer value proposition and retaining customers inside its ecosystem.

⮚ As of September 30, 2021, we operated 546 stores in Karnataka,  475 stores in Tamil Nadu, 474 stores in Telangana, 297 stores in  Andhra Pradesh, 224 stores in West Bengal, 221 stores in  Maharashtra and 89 stores in Odisha.

⮚ The company has an established track record of delivering strong financial performance. Between the financial year 2019 and financial year 2021, total revenue from operations grew at a compound annual growth rate (“CAGR”) of 16.21% from ₹22,727.37 million to  ₹30,692.69 million.

⮚ The company’s business operations across the entire value chain are backward integrated and are wholly managed and operated by itself. The company's operations are supported by its technology-driven supply chain and distribution infrastructure, which is arranged in a hub-and-spoke model and gives it a strong foundation and substantial power to continue to grow.

Outlook & Valuation:

Over the period of FY19 to FY21, company revenue increased from Rs 2,284.94 crore to Rs 3,090.81 crore, while profits grew from Rs 11.92 crore in FY19 to Rs 63.11 crore in FY21 with only a slight dip in FY20.

Margins of the company are increasing slowly.

The company is the second-largest pharmacy retailer in India which offers an omnichannel platform. After a dismal performance for  FY20, the company posted super earnings recently.

The company has low margins, but it is expanding. We believe that there are growth opportunities in the industry and might perform better over the period. There are no listed peers and IPO is arriving at a PE of 71x to its annualized FY22 earnings.

Prima-facie the valuation looks expensive but over the period of time, we believe the company's growth may justify its valuation.

IPO Note

MEDPLUS HEALTH SERVICES LIMITED

KEY MANAGERIAL PERSONNEL

⮚ Ganga Madhukar Reddy is the Managing Director and Chief Executive Officer of the Company. He is one of the Promoters of the Company and has been a Director of the Company since its incorporation on November  30, 2006. He holds a bachelor’s degree in medicine and surgery and a master’s degree in business administration.

⮚ Cherukupalli Bhaskar Reddy is the Chief Operating Officer – outlet operations of the company. He joined the company on March 1, 2007. He has over 14 years of experience in the pharmaceutical industry.

⮚ Surendranath Mantena is the Chief Operating Officer – MedPlus Mart of the company. He joined the company on October 1, 2010.

⮚ Hemanth Kundavaram is the CFO of the company. He joined the company on January 2, 2021. He has over 15  years of experience in corporate finance and accounting in various industries.

⮚ Parag Jain is the company secretary and compliance officer of the company. He joined the company on March  10, 2014. He has 14 years of experience as a company secretary.

⮚ Atul Gupta is the Non-Executive Director of the company. He has over 13 years of experience in the investment industry.

⮚ Murali Sivaraman is the Non-Executive Independent Director of the company. He was previously associated with Philips Lighting.

COMPETITIVE STRENGTHS

⮚ India’s Second Largest Pharmacy retailer Company.

⮚ Strong brand name and customer value proposition.

⮚ Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion  Approach

⮚ High-Density Store Network Enhancing Omni-channel Proposition

⮚ Lean Cost Structure and Technology-Driven Operations

⮚ Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team

⮚ Strong promoter background and an experienced and entrepreneurial management team

BUSINESS STRATEGIES

⮚ Strengthen the Market Position by Increasing Store Penetration in Existing Clusters and Developing New Cluster

⮚ Further Develop the Omni-channel Platform with a Hyper-local Delivery Model

⮚ Increase the Share of Private Labels and Enhance the Stock Keeping Unit (“SKU”) Mix

⮚ Continue to Increase Operating Efficiency and Enhance Supply Chain Management to Drive Profitability

⮚ Enhance Revenue and Increase Customer Wallet Share.

KEY CONCERNS

⮚ Changes in prescription medicine prices and commercial terms may have a negative impact on their business.

⮚ Their company, subsidiaries, promoters, and directors are involved in ongoing legal procedures.

⮚ Privacy and security rules govern the use and sharing of personally sensitive information, especially personal health information.

⮚ Their financial success may be harmed if they will not effectively manage inventory and forecast demand.

⮚ Any negative news or occurrence related to the Indian pharma industry may have a negative impact on their business.

IPO Note

MEDPLUS HEALTH SERVICES LIMITED

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to  provide an industry comparison in relation to the Company

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019 Equity Share Capital 4.48 1.94 1.94Other Equity 7,301.05 5,276.08 2,911.43 Net Worth 7,305.53 5,278.02 2,913.37 Total Borrowings 1,352.35 1,050.51 1,044.02 Revenue from Operations 30,692.69 28,706.03 22,727.37 EBITDA 2,382.13 1,509.62 1,313.47 Profit Before Tax 950.98 293.59 227.51 Net Profit for the year 631.11 17.94 119.22

सोने की कीमतों में मजबूत डॉलर इंडेक्स और बढ़ती हुई बांड यील्ड के कारण पिछले सप्ताह भी ऊपरी स्तरों पर दबाव रहा।

ओमीक्रॉन वायरस के प्रभाव को भी कम माना जा रहा है जिसके कारण कीमती धातुओं में निवेश की मांग नहीं बढ़ी है। वैक्सीन बनाने वाली कंपनी फ़ाइज़र का कहना है की नए वायरस पर वैक्सीन की तीन खुराक,दो खुराक की तुलना में ज्यादा कारगर है। जिसके बाद से कीमती धातुओं में बिकवाली का दबाव बना रहा।

बढ़ती मुद्रास्फीति को नियंत्रित करने के प्रयास में ब्राजील के सेंट्रल बैंक ने अपनी बेंचमार्क ब्याज दर 150 आधार अंकों को दूसरी बार बढ़ाकर 9.25 प्रतिशत कर दिया, जो 2017 के बाद से सबसे अधिक है। लेकिन,  कच्चे तेल के भाव पिछले सप्ताह में 400 रुपये प्रति बैरल तक बढ़ गए है जो सोने के भाव को निचले स्तरों पर फिर से सपोर्ट दे सकते है। सऊदी अरब ने जनवरी क्रूड की कीमत में 80 सेंट की बढ़ोतरी की है। अमेरिकी प्रेसिडेंट बाइडन के मुताबिक कच्चे तेल के साथ कुछ और कमोडिटी पर कीमते कम हुई है लेकिन वर्तंमान मुद्रास्फीति के आकड़ो में यह दिखाई नहीं देंगी।

हालांकि, ओमीक्रॉन वायरस की खबरे फिर से दिखाई देने लगी और यूरोप से एशिया तक, सरकारों ने नवीनतम कोरोनावायरस के प्रसार को सीमित करने के लिए प्रतिबंधों को बहाल करना शुरू कर दिया है, ब्रिटेन ने लोगों को फिर से घर से काम करने का आदेश दिया है, डेनमार्क ने स्कूलों को जल्दी बंद कर दिया और रेस्तरां और बार के लिए घंटों को सीमित कर दिया और चीन ने ग्वांगडोंग से पर्यटक यात्राओं को रोक दिया है।

ओमीक्रॉन के नए मामले बढ़ना कच्चे तेल में बढ़त को सीमित करता दिख रहा है। लेकिन हाल ही की खबर से पता चला कि ओमीक्रोन, डेल्टा संस्करण की तुलना में 4.2 गुना अधिक फैलने वाला है, जिसके कारण दुनिया भर में अस्पताल में भर्ती होने और मौतों में बढ़ोतरी हुई है। मृत्यु दर इस नए वायरस में कितनी है यह अभी ज्ञात नहीं है, हालांकि इसकी प्रसार दर भय पैदा करने के लिए पर्याप्त है। जो कीमती धातुओं को सपोर्ट कर सकती है।

लेकिन, कम दरों और उच्च मुद्रास्फीति के बावजूद साल 2021 में सोने और चांदी ने अब तक लाभ नहीं कमाया है, जो कीमती धातु की विकास संभावनाओं के लिए अच्छा नहीं है। हालांकि, सोने के लिए नकारात्मक आर्थिक परिदृश्य तेज हो सकता है क्योंकि दुनिया भर के केंद्रीय बैंकों को मौद्रिक नीतियों को अत्यधिक उदार रखने की आवश्यकता है। दुनिया भर की अर्थव्यवस्था मुद्रास्फीति को कम करने की कोशिश में है लेकिन महामारी से अनिश्चितता बनी हुई है जिससे सोने के भाव सीमित दायरे में है।

तकनीकी विश्लेषण

इस सप्ताह बुधवार को अमेरिकी फ़ेडरल रिज़र्व की बैठक है, जिसका प्रयास बढ़ती हुई मुद्रास्फीति को कम करना है और यह कीमती धातुओं के लिए महत्वपूर्ण है। सोने और चांदी के भाव में इस सप्ताह दबाव रह सकता है। दिसंबर वायदा सोने में 47000 रुपए पर सपोर्ट और 48800 रुपए पर प्रतिरोध है। चांदी में 58000 रुपए पर सपोर्ट और 62000 रुपए पर प्रतिरोध है।

Rating SUSBCRIBE Issue Offer Issue Opens on Dec 09, 2021Issue Close on Dec 13, 2021 Total IPO size (cr) 1,039.61Fresh issue Nil Offer For Sale (cr) 1,039.61Price Band (INR) 1,000-1,003 Market Lot 14 Face Value (INR) 2Retail Allocation 35%Listing On NSE, BSE

‍Objects of the Issue

‍⮚ For achieving the benefits of listing on the  stock exchanges.

Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion 35

C.E. Info systems limited (MapmyIndia) is a leading provider of advanced  digital maps, geospatial software, and location-based IoT technologies  in India. The company is a data and technology products and platforms  company, offering proprietary digital maps as a service (MaaS), software  as a service (SaaS), and platform as a service (PaaS). The company  provides products, platforms, application programming interfaces (APIs),  and solutions across a range of digital map data, software, and IoT for  the Indian market under the (MapmyIndia) brand, and for the  international market under the (Mappls) brand.

⮚ Company provide 2D and 3D visual and voice-based navigation  platforms that are interactive, capable of outdoor and indoor map  rendering, location search, geocoding and reverse geocoding, as well  as traffic and turn-by-turn route planning optimization.

⮚ Its geo-analytics services assist customers in a variety of industries  in analyzing their markets and developing prediction models using  geographical patterns offered by them. These services also give  consumers with near-real-time dashboarding and monitoring  capabilities.

⮚ Company’s IoT platform, ‘InTouch’, enables connectivity with real  world sensors, phones and IoT devices. It provides a wide range of  applications for near real-time vehicle and asset tracking, geo fencing alerts, historical movement and driver behavior analysis,  predictive vehicle health alerts, as well as fleet, transport and  logistics management

⮚ The company's digital maps comprehensively cover India; approximately its digital maps cover 6.29 million kilometers of roads  in India, representing 98.50% of India’s road network.

Outlook & Valuation:

Shareholding (No. of Shares)Pre Issue 53,242,967Post Issue 53,242,967

‍Indicative Timetable

‍Finalisation of Basis of Allotment 16-12-2021Refunds/Unblocking ASBA Fund 17-12-2021Credit of equity shares to DP A/c 20-12-2021Trading commences 21-12-2021

The company has shown stable growth in revenue, where it grew from Rs 163.35 cr to Rs 192.27 cr over the period of FY19 to FY21, over the same period profit, has grown from Rs  33.56 cr in FY19 to Rs 59.43 cr in FY21 with a minor dip in FY20.  MapmyIndia is the leader in digital mapping in India and has an early mover advantage. We believe that new edge technology including  SaaS, PaaS, and MaaS platform providers has a sparkling future for the next few years. The company serves various industries and sectors which is also a positive. The company saw stable revenue growth in the last few years where the margins have improved too also there are no  listed peers currently. The IPO is arriving at a PE of 93x and P/BV of  15x on FY21 earnings, being the first mover the company is seeking higher valuation.

IPO Note

C.E. INFO SYSTEMS LIMITED

KEY MANAGERIAL PERSONNEL

⮚ Rakesh Kumar Verma is the Chairman and Managing Director of the Company. He co-founded this Company along with Rashmi Verma in 1995 and has significant experience as an entrepreneur in the field of digital maps and geospatial information technologies.

⮚ Rohan Verma is the Whole-time Director and the CEO of the Company. He joined this Company in 2007 and worked in various capacities and was appointed as CEO of the Company with effect from April 1, 2019.

⮚ Anuj Kumar Jain is the Chief Financial Officer of the company and has been associated with the company since  May 2011. He has significant experience in the field of finance, taxation, and accounting.

⮚ Saurabh Surendra Somani is the Company Secretary and Compliance Officer of the company with effect from  July 27, 2021. He has significant experience in the fields of legal, secretarial and listing compliance.

⮚ Rashmi Verma is the co-founder and chief technology officer of the company. Prior to founding the company,  she worked in the U.S.A., including with the IBM Corporation till 1988. She has significant experience as an  entrepreneur in the fields of information technology, management, and the geospatial industry, and digital  mapping in India.

⮚ Shishir Verma is the senior vice-president, human resources and corporate affairs, and had joined the company  on January 17, 2014. He has to look after corporate and legal affairs of the company.

COMPETITIVE STRENGTHS

⮚ Pioneers of digital mapping in India having an early mover advantage.

⮚ Leading the B2B and B2B2C market for digital maps and location intelligence in India.

⮚ Market position built around proprietary technology and network effect resulting in strong entry barriers.

⮚ Independent, global geospatial products and platforms company with strong data governance. ⮚ Prestigious customers across sectors with strong relationships.

⮚ Profitable business model with consistent financial track record, high operating leverage and strong cash flows.

KEY BUSINESS STRATEGIES

⮚ Continue to scale and expand the customer reach leveraging market presence in India.

⮚ Augment company products, platforms and the technology lead.

⮚ Drive expansion in international markets and geospatial sector

⮚ Pursue selective strategic acquisitions and investments to grow their business

KEY CONCERNS

⮚ The entire proceeds of the IPO is Offer for Sale. Means, the IPO proceeds would go to selling shareholders and  company would not get anything except for listing gains.

⮚ Part of the business is dependent on the performance of the auto sector in India. Any adverse changes in the  conditions affecting this sector can impact the business.

⮚ Company’s inability to maintain or update its map database or errors in its map database could harm the  reputation of the company.

⮚ Company depends on a limited number of customers for a significant portion of its revenues.

⮚ Company is dependent on trends in the sectors where enterprise customer operates.

IPO Note

C.E. INFO SYSTEMS LIMITED

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to  provide an industry comparison in relation to the Company

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 38.33 38.33 38.33Convertible Preference Shares 1,289.64 1,289.64 1,289.64Other Equity 2,252.01 1,649.43 1,524.03Net Worth 3,579.97 2,977.39 2,851.99Total Borrowings 5.90 8.80 0.00Revenue from Operations 1,524.63 1,486.29 1,352.55EBITDA 543.24 371.87 404.60Profit Before Tax 787.66 315.96 418.02Net Profit for the year 594.33 231.95 335.66