Jay Jalaram Technologies Limited IPO

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i. Jay Jalaram Technologies is engaged in multi-brand retail selling of Smart Phones and allied asscessories from manufacturers like Apple, Samsung, Oppo, Realme, Nokia, Vivo, Xiaomi, Nokia, Redmi, Techno, One Plus, and Xiaomi.

ii. They are also engaged in multi-brand retail selling of consumer durable electronics goods like Smat TVs, Air Conditioners, Fridges, Coolers etc. from brands like TCL, Haier, Diakin, Voltas, Mi, Realme, OnePlus, Xiaomi, Skytron.

iii. The company operate under the brand name As on April 30, 2022 the company operate from total 82 stores across the state of Gujarat. They primarily sell smart mobile handsets of all the major brands, accessories for the mobile handsets, tablets, data cards and other consumer duarable electronics goods under one roof. Out of 82 stores 10 are company owned retail outlets, 65 are franchise owned and franchise operated branch retail stores (“FOFO Model”) and 7 are franchise owned and company operated branch retail stores (“FOCO Model”).

iv The other business vertical includes exclusive dealership of Electric Bikes, its spare parts and accessories under the brand name “Revolt” for Ahmedabad region. As on April 30, 2022, we sell Electric Bikes through 2 company owned retail outlets situated at Ashram Road area in Ahmedabad and Nana Chiloda in Gandhinagar for which the company has signed Letter of Intent (“LoI) on September 10, 2019, with Revolt Intellicorp. Private Limited.

v. Competitive Strengths :

  1. Experienced Promoters and Management Team.
  2. Widespread distribution network.
  3. Wide range of Products.
  4. Strategic location and facilities.

Objects of the Jay Jalaram Technologies Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: 1. To Meet Working Capital Requirements 2. General Corporate Purpose 3. To meet Public Issue Expenses
DRHP of Jay Jalaram Technologies Limited IPO
RHP of Jay Jalaram Technologies Limited IPO

Jay Jalaram Technologies Limited IPO Details:

Open Date: Aug 26 2022
Close Date: Aug 30 2022
Total Shares: 3,000,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 10.80 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 36 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 08 2022

Promoters And Management:

i. Mr. Kamlesh Varjivandas Thakkar aged 40 years is Promoter-Chairman cum Managing Director of the Company, Originally he was appointed as a Promoter-Non Executive Director of the Company w.e.f. January 17, 2012. Thereafter, he was appointed as Chairman cum Managing Director for a period of five (5) years w.e.f. May 26. 2022 liable to retire by rotation. He is having more than 10 years of experience in the business of trading in Electronics goods and Mobiles related accessories.He has been instrumental in taking major policy decision of the Company and also in leading the Company. He has playing vital role in formulating business strategies and effective implementation of the same. ii. Mr. Kamlesh Hariram Lalwani aged 43 years is Promoter - Executive Director of the Company. Originally he was appointed as Promoter-Non Executive Director of the Company w.e.f. January 17, 2012. Thereafter, he was appointed as an Executive Director for a period of five (5) years w.e.f. May 26, 2022liable to retire by rotation. He is having more than 10 years of experience in the Business of trading in Electronics goods and Mobiles related accessories. He is generally entrusted with the responsibilities to look after the sales and other general administration of the Company. iii. Mr. Mukeshkumar Navnitray Bhatt aged 41 years is Promoter- Executive Director of the Company, Originally appointed asanAdditional Director of the Company w.e.f. December 24, 2021. Subsequently regularized and appointed as an Executive Director for a Period of 5 (Five) years w.e.f. May 26, 2022 liable to retire by rotation. He hold Degree of Bachelor of Commerce from the Saurashtra University. He is having more than 10 years of experience in the Business of Electronics goods and Mobiles related accessories.He looks after various matters like finance, sales & marketing, brand building, human resource, general affairs of retail stores across the Gujarat and business expansion of the Company.

Financials of Jay Jalaram Technologies Limited IPO:

Particulars (in lakhs) March 22 March 21 March 20 March 19
Revenue from operations 16,525 12,145 9,515 9,519
Purchases of Stock in Trade 15,379 11,391 8,892 8,887
Changes in inventories -458 -411 -251 -53
Employee benefits expense 242 218 152 133
Other Expenses 1,052 791 597 454
Operating Profit 309 156 124 95
OPM% 2% 1% 1% 1%
Finance Cost 136 108 51 80
Depreciation 94 84 76 76
Other Income 29 79 8 57
Profit (Loss) before tax 107 43 4.5 -3.62
Tax expense 20 14 2 3
Profit (Loss) for the period 87.17 29.35 2.56 -6.34
Earnings per share 0.76 0.26 0.02 NA
 

Comparison With Peers:

Name of the Company EPS (in Rs) PE Revenue (In Cr.) RONW %
Jay Jalaram Technologies Limited 0.76 47 165 4%
Bhatia Communications & Retail (India) Ltd 0.42 70 233 11.41

Recommendation on Jay Jalaram Technologies Limited IPO:

Review and Recommendation of Jay Jalaram Technologies by IZ team is 2/10

1. JJE, an Ahmedabad based firm, was setup by Mr. Kamlesh Varjivandas Thakkar, Mr. Kamlesh Hariram Lalwani in 2007, is engaged in multi-brand retail selling of Smart Phones and allied asscessories from manufacturers like Apple, Samsung, Oppo, Realme, Nokia, Vivo, Xiaomi, Nokia, Redmi, Techno, One Plus, and Xiaomi.

The business is highly competitive and this leads to lower bargaining power. 2. As on April 30, 2022 they operate from total 82 stores across the state of Gujarat. They primarily sell smart mobile handsets of all the major brands, accessories for the mobile handsets, tablets, data cards and other consumer duarable electronics goods under one roof. 3.  They have now started selling Electric Bikes through 2 company owned retail outlets. 4. They have ~7% Gross Margins and ~2% OPM in the business, which are very low due to trading line of business. So, it is a game of volume . More the volume, more will be the revenue and other parameters. 5.  Asking P/E is 47 based on Fy22 numbers which looks very high. 

Lead Manager of Jay Jalaram Technologies Limited IPO:

  1. Beeline Broking Limited

Registrar of Jay Jalaram Technologies Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Jay Jalaram Technologies Limited Office No.103, Shail Mall, B/H. Girish Cold Drink, Shilp Char Rasta, C. G. Road, Navrangpura, Ahmedabad -380009 Phone: 079 4899 5415 Email: cs@koremobiles.com Website: http://www.koremobiles.com/

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