i. Mr. Mohan Prasad Panday, aged 46 years, is the Promoter and Managing Director of the Company. He holds a degree of Bachelor of Science from Andhra University. He started his entrepreneurial journey in the year 2005. He has over 18 years of experience in the retail industry of selling mobile phones. He has been associated with the Company since April 10, 2013. He plays a vital role in formulating business strategies and business policies. ii. Mr. Bala Balaji Panday, aged 44 years, is a Whole time Director of the Company. He holds a Diploma in Medical Laboratory Technician Course from Murali Krishna School of Medical Technology, Nellore. He has 17 years of work experience in the field of mobile industry. He has been associated with the Company since April 10, 2013. He oversees operations in the Company. iii. Mrs. Kiranmail Panday, aged 39 years, is a Non-Executive Director of the Company. She has completed her Intermediate Public Examination in the year 2000. She has been associated with the Company since December 1, 2017.

A. Balance Sheet

Particular (In Lakhs)	Mar-20	Mar-21	Mar-22	9MFY23
Equity Share Capital	113.76	113.76	113.76	1,365.16
Reserves	988	1,058	1,222	552
Borrowings	2,929	3,858	5,172	5,838
Trade Payables	1,216	987	1,303	791
Other Liabilities	338	514	460	517
Total Liabilities	4,483	5,359	6,935	7,147
Net Block	1,938	1,933	1,867	1,818
Other Assets	563	1,416	1,000	1,017
Total NC Assets	2,501	3,349	2,867	2,835
Receivables	67	25	46	24
Inventory	1,969	2,572	3,803	4,254
Cash & Bank	275	340	806	959
Other Assets	772	244	749	993
Face value	10	10	10	10

B. Profit & Loss Statement

Particular (In Lakhs)	Mar-20	Mar-21	Mar-22	Mar-23
Sales	27,756	22,301	26,916	29,431
Raw Material Cost	23,492	19,281	23,373	24,278
Change in Inventory	-315	-604	-1,231	-601
Employee Cost	1,054	893	998	1,047
Other Expenses	2,593	1,974	2,707	2,865
Other Income	56	55	88	125
Depreciation	153	120	112	92
Interest	596	564	803	793
Profit before tax	239	127	243	1,081
Tax	79	58	78	307
Net profit	160	69	165	775

C. Cash Flow Statement

Particular (In Lakhs)	Mar-20	Mar-21	Mar-22	9MFY23
Cash From Operating Activity
Profit From Operation	609	483	496	1027
Receivable	47	43	-21	22
Inventory	-315	604	-1231	-451
Payable	-434	-229	315	-511
Loans And Advances	12	48	-439	-19
Other WC Items	324	562	1751	636
Working Capital Changes	-366	1027	376	-323
Direct Taxes	-97	-68	-86	-226
Net Cash Inflow from Operating Activity	146	235	785	478
Cash from Investing Activity
Fixed assets purchased	-103	-116	-46	-21
Other investing items	1	-20	-9	-3
Net cash inflow from investing activities	-102	-135	-55	-24
Cash from Financing Activity
Proceeds from shares	0	0	0	0.04
Proceeds from borrowings	284	181	0	0
Repayment of borrowings	0	0	-133	-158
Intrest paid fin	-218	-216	-132	-143
Net Cash Flow	110	65	466	152

 

Name of the Company	Revenue (In Crore)	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
Cell Point (India) Limited	294	7.7	4.14	24.1	100	186.8
Bhatia Communications & Retail (India) Ltd	313	8	0.68	22.8	15.5	194
Fone4 Communications (India) Ltd	100	-2	-1.11	-	4.8	8.18
Jay Jalaram Technologies Ltd	249	3	2.26	78.1	176	196

* All the Data is as per FY23.

Review and Recommendation of Cell Point (India) SME IPO by IZ team is 2/10 1. Cell Point (India) is engaged in multi-brand retail selling of Smart Phones, tablets, mobile accessories and mobile related products and allied accessories of various brands such as Apple, Samsung, Oppo, Realme, Nokia, Vivo, Xiaomi, Nokia, Redmi, Techno, One Plus, GIONEE, VIVO etc. 2. Thery sell all their products directly through its 75 stores. Out of the 75 stores, 2 stores are owned properties and 73 stores are on leased properties. All the 75 stores are in Andhra Pradesh region. 3. Currently, they have employed 298 employees. 7 in senior management, 22 in purchase and logistics, 25 in Accounts and 244 in sales department. 4. They do not have much presence online. They get all sales from rental showrooms. 5. In FY22, the company generated a total revenue of 270 Crores with a Gross margin of 14%. Notably, a significant portion of the revenue was allocated as sales commission to the senior management, amounting to 5 Crores on the top of 3 Cr as salaries expenses. As a result, the EBITDA stood at a modest 13 Crores. The company also faced a substantial interest cost of 8 Crores, leading to a relatively low interest coverage ratio of 1.65 times. The company had a total debt of approximately 52 Crores as of March 31, 2022. It is worth mentioning that instead of utilizing the commission payments to reduce the debt, the company opted not to pursue that course of action. 6. There is hardly any growth in the revenue in the last 4 years. 7. The sector is very competitive dominating by online players such as Amazon and Flipkart. Plus currently the company do not have any online presence. 8. The sector is highly competitive, dominated by online players such as Amazon and Flipkart, while the company currently lacks any online presence. 9. The business model necessitates the management of a substantial inventory, resulting in a consistently high working capital requirement. 10.The requested P/E ratio of 24x is based on the FY23 numbers, where there was a sudden increase in both EBITDA margins and net profit margins. This significant improvement in margins helped to reduce the P/E ratio. However, when considering the FY22 numbers, the P/E ratio would exceed 100x. Research Report on Cell Point SME IPO

Cell Point (India) Limited Door No 30-15-139/F/5, 6 Ward No 27, Ram’s Arcade, Opposite Visakha Medical Centre, Dabagardens, Visakhapatnam 530020 Phone: +91 9000113897 Email: cs@cellpoint.biz Website: https://cellpoint.biz/