Future Ventures India Ltd

Incorporated in 1996, Future Ventures India Ltd is part of Future Group (led by Kishore Biyani and owners of Future Bazaar, Pantaloons, Central, Big Bazaar, Food Bazaar, Home Town and E-zone). Future ventures India Ltd is in the business of creating, building, acquiring, investing in and operating innovative and emerging businesses in consumption-led sectors in India. Within the consumption-led sectors, Future ventures has primary focus on opportunities in the business segments of Fashion, FMCG, Food Processing, Home Products, Rural Distribution and Vocational Education. As of date, company has 13 Business Ventures, six of which are its subsidiaries. Company believes in applying a disciplined investment approach and building strong partnerships with management and promoters. As per financial performance, Neogen Chemicals has posted total income/net profits of Rs. 80.31 cr. / Rs. 3.67 cr. (FY14), Rs. 92.48 cr./ Rs. 4.97 cr.(FY15),     Rs. 109.04 cr. / Rs. 5.14 cr. (FY16), Rs. 121.78 cr. / Rs. 7.21 cr. (FY17) and Rs. 164.68 cr. / Rs. 10.53 cr. (FY18) . For upto Q3 of FY19, it has reported net profit of Rs. 12.30 cr. on total revenue of Rs. 159.69 cr. So company has posted good and consistent growth year on year. Trade receivables for FY18 was Rs 41.36 Cr, which is around 25% of total sales. Neogen has posted an average EPS of Rs. 4.34 and average RoNW of 19.72% for last three fiscals. Issue is priced at a P/BV of 7.02 as per NAV of 30.62 on 31.12.18. If we annualise latest earnings and attribute it on post issue equity, then asking price is at a P/E of around 30.58 and as per FY18 earnings P/E is around 47.67. As per RHP, industry average is around 37.67 and comparison with listed peers is given in above tables. So issue looks fully price as per latest earnings.  On BRLM's front, for Batlivala & karani Securities India Private Limited and Inga Advisors Private Limited, this is first IPO. ( As on 22.01.19 ) As per financials, company's has shown good results, RoNW is 19.91% for last three fiscals and issue is priced at P/E of around 30.58 as per latest earnings. Company has made its place in the bromine and lithium based products. The issue is fully priced as per latest earnings. But company has expansion plan and expected to grow with healthy rate. So we give NEUTRAL rating to this IPO.

• 1 Mr. Kishore Biyani
• 2 Future Capital Investment Private Limited
• 3 Future Corporate Resources Limited
• 4 Future Knowledge Services Limited
• 5 Pantaloon Retail Limited