Jay Jalaram Technologies Limited IPO
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 :
- Experienced Promoters and Management Team.
- Widespread distribution network.
- Wide range of Products.
- Strategic location and facilities.
Objects of the Jay Jalaram Technologies Limited IPO:
Jay Jalaram Technologies Limited IPO Details:
|Open Date:||Aug 26 2022|
|Close Date:||Aug 30 2022|
|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:
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|
|Profit (Loss) before tax||107||43||4.5||-3.62|
|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.