SBL Infratech Limited

SBL Infratech Limited, started in 2015 into the business of Real Estate Brokerage. In 2016, they successfully launched & executed Shubh Niwas project in Neemrana, Rajasthan where they acquired rural land, got it converted to residential and sold after plotting. In 2017, they have successfully launched Dayal Vihar project in Neemrana, Rajasthan. The Development Business spans all activities related to real estate development, which begins from the identification and acquisition of land till through the planning, execution and sales of the developed projects.  SBL Infratech Limited posted turnover/net profits (loss) of Rs.0.19 Cr. / 0.004 Cr. (FY19), Rs. 1.48 Cr. / 0.107 Cr. (FY20), Rs 0.40 Cr. / Rs. 0.017 Cr. (FY21). So company has shown zig-zag results. For the last three years, company has posted average EPS of Rs. 0.11 and RoNW of 54.27%. The issue is priced at a P/BV of 1.5 based on its NAVs of Rs. 73.93 post issue. As per FY21 earnings and on post issue equity, IPO is valued at P/E of around 536, which looks very expensive. Comparison between listed peers is shown in above table, but they are not strictly comparable. On BRLM's front, Fast Track Finsec Private Limited associated with this SME IPO, but details related to past handled IPOs not available in RHP as well as on company website. ( On 15.09.21 )   FOR SBL INFRATECH LIMITED results are poor, RoNW is 1.11%, P/E is around 536 for FY21 earnings, so issue looks very expensive. Performance of BRLM is not available. So we give AVOID rating to this SME IPO.

• 1 Mr. Ankit Sharma
• 2 Mrs. Shefali Sharma