Subscribe to Electronics Mart India: Ajcon Global

Ajcon Global IPO report on Electronics Mart India 

The Company is the 4th largest and one of the fastest growing consumer durables and electronics retailers in India and as of Financial Year 2021, the Company is the largest regional organised player in the southern region in revenue terms with dominance in the states of Telangana and Andhra Pradesh (Source: Company Commissioned CRISIL Report). Electronics Mart India commenced its business operations in 1980 and since then there has been a steady rise in its revenue from operations. The Company has been one of the fastest growing consumer durable & electronics retailers in India with a revenue CAGR of 17.90% from Financial Year 2016 to Financial Year 2021 (Source: Red Herring Prospectus). The Company has built a longstanding market presence with more than three decades of experience having commenced its business operations as a proprietary concern by setting up its first consumer durable and electronic retail store at Hyderabad. The group converted the erstwhile sole proprietorship into a partnership firm under the name of ‘M/s Bajaj Electronics’ pursuant to a partnership deed dated March 25, 2011 and subsequently converted the partnership firm into a public limited company under the Companies Act, 2013 with the name ‘Electronics Mart India Limited’ The Company offers a diversified range of products with focus on large appliances (air conditioners, televisions, washing machines and refrigerators), mobiles and small appliances, IT and others. The Company's offering includes more than 6,000 SKUs across product categories from more than 70 consumer durable and electronic brands.

Valuation and Outlook

At the upper end of the price band of ₹59, the Company's IPO is valued at P/E of 21.85x at post IPO FY22 EPS which we believe is reasonable and decent considering strong fundamentals of the Company. The Company's past financial performance has been good as compared to industry peers. We recommend "SUBSCRIBE" to the issue due to the following factors.

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04102022 - Electronics Mart India  -IPO - ajcon