Review By on January 22, 2018
Focus Suits Solutions & Services Ltd. (Focus) is a qualitative fieldwork agency having its presence across 18 major countries in Asia, Middle East and Latin America. Company’s team of project managers handle projects execution of different fieldwork across various industries like healthcare, automobiles, IT & Telecom, FMCG, Retail etc. Majestic Market Research Support Services Ltd. is the main promoter of the company. Focus is a member of ESOMAR and CASRO. Major portion of company’s revenues comes from overseas markets.
To part finance its investment plans in subsidiaries POPRSPL and GENPOP, working capital and general corpus fund needs, Focus is coming out with a maiden IPO of 3608000 equity shares of Rs. 10 each at a fixed price of Rs. 18 per share to mobilize Rs. 6.49 crore. Issue opens for subscription on 30.01.18 and will close on 01.02.18. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue constitutes 27.03% of the post issue paid up capital of the company. Average cost of acquisition of shares by the promoters is Rs. 19.10 per share. Issue is solely lead managed by Pantomath Capital Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Having issued initial equity at par, it raised further equity in a price range of Rs. 15 to Rs. 345 between August 2016 and August 2017. It has also issued bonus shares in the ratio of 16 for1 in April 2017. Post issue its current paid up equity capital of Rs. 9.74 crore will stand enhanced to Rs. 13.35 crore.
On performance front, Focus has (on a consolidated basis) posted revenue of Rs. 15.42 crore with a net profit of Rs. 1.29 crore for FY17. For first four months ended on 31.07.17 it has reported net profit of Rs. 0.56 crore on total revenue of Rs. 5.78 crore. Surprisingly, it has preferred to give details of first four months working instead of H1. For FY17 it has posted an EPS of Rs. 5.00 and RoNW of 28.37% on an equity base of Rs. 0.15 crore. If we annualize latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 14. Issue is priced at a P/BV of 1.06 based on its NAV of Rs. 16.88 as on 31.07.17 and at a P/BV of 1.05 on the basis of post issue NAV of Rs. 17.17. As per offer document, MRSS is the listed peer for this company. MRSS is trading at a P/E of around 36 (as on 16.11.17). MRSS has given handsome rewards since listing of its IPO and is the major stakeholder. On a standalone basis Focus has posted revenue/net profits of Rs. 6.02 cr. / Rs. 0.14 cr. (FY15), Rs. 7.51 cr. / Rs. 0.65 cr. (FY16), Rs. 9.51 cr. / Rs. 0.98 cr. (FY17). For first four months of the current fiscal it has reported net profit of Rs. 0.46 cr. on revenue of Rs. 3.96 cr.
On merchant banker’s front, this is the 58th mandate from its stable in last three fiscals. Out of last 10 listings, 1 opened around par and the rest with premiums ranging from 1% to 130% on the day of listing. 130% rewards are from the only main board IPO of this merchant banker i.e. Astron Paper.
Based on realigned business strategy reflected in consolidated working that is available only for past sixteen months, future prospects appears bright. Investment may be considered for long term.
Review By on January 22, 2018
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 Focus Suites Solutions & Services Ltd. offers an early investment opportunity in Focus Suites Solutions & Services Ltd.. A stock market investor can buy Focus Suites Solutions IPO shares by applying in IPO before Focus Suites Solutions & Services Ltd. shares get listed at the stock exchanges. An investor could invest in Focus Suites Solutions IPO for short term listing gain or a long term.
Read the Focus Suites Solutions IPO recommendations by the leading analyst and leading stock brokers.
Focus Suites Solutions IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Focus Suites Solutions IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Focus Suites Solutions IPO?"
Our recommendation for Focus Suites Solutions IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Focus Suites Solutions IPO.
The Focus Suites Solutions IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Focus Suites Solutions IPO allotment status to check.
