Aesthetik Engineers Limited

Aesthetik Engineers Limited is engaged in the business of designing, engineering, fabrication and installation of facade systems. The portfolio includes Building facades, Aluminium Doors and Windows, Railing and Staircase and Glassfibre Reinforced Concrete (GFRC). They offer a wide range of products and services to various industries such as Hospitality, Residential, Commercial, and Infrastructure Projects. They execute end to end solution of the offerings i.e, from designing of façade to installation of facade at the site. Company’s registered office is situated at Kolkata and factory situated at Howrah, Kolkata, and is spread over the 3,000 square meter, which is being used for the fabrication and assembly of the products. As on date total value of ongoing projects is around Rs 67/- Cr. Some of the clients are Ambuja Housing and Urban Infrastructure Limited, Primarc Projects Realty Private Limited, Siti Networks Limited, Larsen & Toubro Limited, ACC India Pvt Limited, Shapoorji Pallonji & Company Private Limited, etc. As per financial performance, Aesthetik Engineers Limited has posted total income / net profits of Rs 25.93 Cr / Rs (0.45) Cr (FY22), Rs 40.35 Cr / Rs 1.12 Cr (FY23) and Rs 60.79 Cr / Rs 5.02 Cr (FY24). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 7.09 and average RoNW of 26.21% for last three fiscals. Issue is priced at a P/BV of 2.41 as per NAV of 24.1 as on Post issue. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around (221.36), 88.78 and 19.86 respectively, which looks fully priced. As per RHP, comparision between listed peers is shown in above table. On BRLM's front, Narnolia Financial Services Limited is associated with this SME IPO and handled 10 IPOs in last 2 years. From last 10 IPOs, one opened below issue price or at par on the day of listing. As of now from last 10 IPOs, two is trading below issue price. ( As on 05.08.24 ) As per financials, Aesthetik Engineers Limited has shown good growth, RoNW is 33.48% and P/E is respectively (221.36), 88.78 and 19.86 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit just before IPO raises doubts. Company is engaged in business of designing, engineering, fabrication and installation of facade systems, which is highly fragmented and competitive business segment. Performance of BRLM is good. So, we give "SUBSCRIBE FOR LISTING GAINS" rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Avinash Agarwal
• 2 Ms. Sreeti Agarwal
• 3 Ms. Manisha Sureka
• 4 M/s Avinash Agarwal (HUF)