Dj Mediaprint & Logistics Limited FPO

Started in 2009, DJ Mediaprint & Logistics Ltd is a provider of Integrated Printing, Logistics and Courier solutions in India with a well networked transport operations, pre-eminent quality standards and processes & operations.The Company provides Bulk Mailing, Speed Post, Records Management, Manpower Supply, Return of Post Management, Bulk Scanning, Moving Services, Newspaper Print Advertising services and other related services. The Company can process over 40 to 50 lakh articles per month as per the estimation of the current infrastructure, they cater to wide customer base across various industry segment such as Banking, Airlines, Shipping, Logistics, Education, Finance, Lottery Ticket, Healthcare, Insurance, Manufacturing, Retail, Stockbroking, Telecom, Utilities among others. The Company clientele includes LIC, National Insurance, Bharti Axa, GIC Housing Finance, Reserve Bank of India, Central Bank of India, Bank of India, United Bank of India, Citi Bank, Corporation Bank, Federal Bank, State Bank of India, Punjab National Bank, Vijaya Bank, Bank of Baroda, Dena Bank, Indian Institute of Architects, Bombay Chartered Accountants' Society, Infosys, Wipro, Britannia, Aditya Birla Group, Dish TV, Lawrence & Mayo, Jet Airways, TBZ, Gulf, Zee Entertainment, Philips, Larsen & Toubro, Edelweiss, NSDL, ATUL, Purva Sharegistry, Satellite among others. As per financial performance, DJ Mediaprint & Logistics Limited has posted total income/net profits of Rs 20.67 Cr / Rs 0.92 Cr (FY19), Rs 21.32 Cr / Rs 1.09 Cr (FY20), Rs 24.81 Cr / Rs 1.26 Cr (FY21) and Rs 13.11 Cr / Rs 1.05 Cr (H1 FY22). So company has shown good results over last couple of years. Company has posted an average EPS of Rs 3.22 and average RoNW of 22.58% for last three fiscals. Issue is priced at a P/B of 2.88 as per NAV of Rs 43.45 post issue. As per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 53.54 and as per annualised FY22 earnings P/E is 32.20. As per RHP, there are no listed peers. IPO of DJML arrived in March 2020 at P/E of around 9 and now FPO is coming at P/E of around 54, which looks aggressively priced and CMP is around 200, but just before one month it was in range of 115 - 130, which raises some concerns. On BRLM's front, Finshore Management Services Limited associated with this SME IPO and handled 18 IPOs in last 3 years. From last 10 IPOs, two opened below issue price and remaining above issue price or at par. As of now from 10 IPOs, six are trading below and remaining are trading above issue price or at par. ( As on 13.01.22 ) For DJ Mediaprint & Logistics, it has shown good results and issue is priced at P/E is respectively 54 and 32 as per FY21 and annualised FY22 earnings, which is aggressively priced in current scenario. The company is working in transportation and logistics segment and has good growth opportunity, but competition is very high. Performance of BRLM is poor after listing. So we give AVOID rating to this SME IPO.

• 1 MR.Dinesh Muddu Kotian 
• 2 MR. Santosh Muddu Kotian