Review By Dilip Davda on June 23, 2017
Ace Integrated Solutions Ltd (AISL) is a India's leading Recruitment & Examination Services Management Company, bringing together the Domain Expertise and innovative skills required for the successful execution of the project every time with highest level of security and customer satisfaction. AISL has over 16000 Sq. Ft. area which is well equipped with the Equipment and machinery required for the execution and production of all the deliverables involved in any of the Recruitment and Examination Project. Its divisions namely 'Amety Offset Printers' etc. are completely mapped with the requirements of the execution of the voluminous turnkey projects (Single / Multiple location across India).
The company also offers a range of services namely, On-Line & off line Application Form designing, Barcoding, Collection, Data Capturing & Processing, Designing Printing and Dispatch of Admit Cards, Arrangement of test venues, Designing & printing of OMR answer sheets with security features, Setting, Designing and printing of question booklet as per the required Difficulty Levels and Topics (Technical & Non-Technical), consultancy, Facility Management, Data Base Management Services etc. Over the years, it has successfully implemented large turnkey assignments for various PSUs/State/Central Customers. Top three clients of the company for FY 16 were TCS, CMC and Delhi Metro.
To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 1800000 equity share of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 7.20 crore. Issue opens for subscription on 29.06.17 and will close on 05.07.17. Minimum application is to be made for 3000 shares and in multiples, thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is lead managed by D & A Financial Services (P) Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Its entire equity is issued at par so far and has also issued bonus shares in the ratio of 24 for 1 in Sept. 2015, 9 for 1 in Feb. 2016 and 1 for 1 in Aug. 2016. Post issue its current paid up equity capital of Rs. 5.00 crore will stand enhanced to Rs. 6.80 crore.
On performance front, the company has posted turnover/net profit of Rs. 14.75 cr. / Rs. 1.19 cr. (FY14), Rs. 15.24 cr./ Rs. 1.06 cr. (FY15) and Rs. 21.06 cr. / Rs. 1.47 cr. (FY16). For the first nine months of the current fiscal ended on 31.12.16 it has earned net profit of Rs. 0.79 crore on a turnover of Rs. 15.35 crore. Thus it has inconsistency in bottom lines despite growing top line. If we annualize latest earnings and attribute it on fully diluted equity post IPO, then asking price is at a P/E of 25 plus. Its average RoNW for last three fiscals is at 28.95%. Offer price is at a P/BV of 3.27. It has no listed peer to compare with. Based on above parameters, issue is fully priced.
On merchant banker's front, this is the 1srh mandate from its stable and has no track record.
Conclusion: Investors may consider moderate investment for long term.
Review By Dilip Davda on June 23, 2017
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Ace Integrated Solutions Ltd. offers an early investment opportunity in Ace Integrated Solutions Ltd.. A stock market investor can buy Ace Integrated Solutions IPO shares by applying in IPO before Ace Integrated Solutions Ltd. shares get listed at the stock exchanges. An investor could invest in Ace Integrated Solutions IPO for short term listing gain or a long term.
Read the Ace Integrated Solutions IPO recommendations by the leading analyst and leading stock brokers.
Ace Integrated Solutions IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Ace Integrated Solutions IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Ace Integrated Solutions IPO?"
Our recommendation for Ace Integrated Solutions IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Ace Integrated Solutions IPO.
The Ace Integrated Solutions IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Ace Integrated Solutions IPO allotment status to check.
