Maagh Advertising And Marketing Services Ltd IPO

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i. Maagh Advertising is a advertising agency primary offering creative and media services. They create and execute advertising campaigns across various media that help its clients business and brands grow.

ii. The company offers a complete range of designing, media and printing services. Their strength is media buying where they understand the clients marketing objective and use the correct media to achieve that objective. They are able to understand the various media available and use the right mix of media and the right prices to the achieve the client’s media objectives.

iii. Their services include the following:

Media Services 

(i) Print / Outdoor / Radio / Social Media;
(ii) Media Planning / Buying and implementation;

Creative Services:

(i) Concept Development
(ii) Print advertisements
(iii) Radio Spots
(iv) Outdoor advertisements
(v) Online advertisements
(vi) Logo Design
(vii) Packaging Design

Social Media Advertising:

(i) Creative web designing
(ii) SEO Services
(iii) Campaigns

Other Services:

(i) Public Relation Campaigns
(ii) Product Launch campaigns

iv. Competitive Strengths
(i) Meeting expectation of clients
(ii) Social media and digital advertising
(iii) Social media and digital advertising

Objects of the Maagh Advertising And Marketing Services Ltd IPO:

The objects of the Net Proceeds (as defined below) of the Issue are: 1. Purchase of Software 2. Purchase of Media Inventory 3. General Corporate Purposes
DRHP of Maagh Advertising And Marketing Services Ltd IPO

Maagh Advertising And Marketing Services Ltd IPO Details:

Open Date: Sep 26 2022
Close Date: Sep 29 2022
Total Shares: 1,520,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 9.12 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 60 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 10 2022

Promoters And Management:

i. Azharuddin R. Mulla, aged 36 years, is the Managing Director of the Company. He has completed his B.Com from University of Mumbai. He is having over a decade of experience of marketing in broking and banking industry. He then got in association with the Company and took the initiative the current growth of the Company. Prior to joining the company, he was working in banking and broking industry, as well as apple trading and supply. He provides strategic guidance to the Company and takes care of day to day business of the Company and executes the strategy as per the approval of the Board of Directors. ii. Ganesh Sundaram Gounder, aged 22 years, is an Independent Director of the Company. He has completed his Bachelors of Commerce from University of Mumbai. He is having experience of over 1 year in the field of accounting. He has been on the Board since December 2, 2021. iii. Manoj Gopinath Nair, aged 46 years, is an Independent Director of the Company. He is an undergraduate. He is having experience of over 10 years in field of marketing. He has been on the Board since April 8, 2022.

Financials of Maagh Advertising And Marketing Services Ltd IPO:

Particulars (in crores) Mar-22 Mar-21 Mar-20
Revenue from operations 21 24 52
Cost of materials consumed 19 22 50
Employee Benefit Expense 0.3 0.3 0.3
Other Expense 0.3 0.3 0.3
Operating Profit 1.4 1.4 1.4
OPM% 6.67% 5.83% 2.69%
Depreciation 0.6 0.8 0.8
Profit (Loss) before tax 0.74 0.9 1
Profit (Loss) for the period 0.5 0.7 0.8
No of Share 0.3 0.3 0.3
Earnings per share 1.6 2.3 2.6

Comparison With Peers:

Name of the Company CMP FV EPS P/E
Maagh Advertising And Marketing Services Limited* 60 10 1.3 46
Pressman Advertising Limited 42 2 4.51 25.6
Digicontent Limited 16 2 3.62 6.34
Brandbucket Media & Technology Limited 24.2 10 0.73 33.1

Recommendation on Maagh Advertising And Marketing Services Ltd IPO:

Review and Recommendation of Maagh SME IPO by IZ team is 3/10.

1. Magh is a marketing company that specialises in providing media and creative services. They develop and implement marketing strategies for the customers' businesses and brands across a range of media. 2. They offer a complete range of designing, media and printing service like Digital Marketing, Logo Design, Outdoor advertisement, SEO services, and Creating web designing. 3. They generated a profit of 29 Cr in FY19, although it cost them 27 Cr to operate. This demonstrates that they are a marketing firm that accepts projects from clients, transfers them to third parties in the market, and then collects a commission. In other words, they are making about 2 crores on a revenue of 29 crores, or 7% margins. 4. There is no growth in the revenue in the last 3 years. 5. Cash flow from operations is also negative in the first 9M of FY21-22. 6. EPS of FY22 is 1.6 and so, P/E is 37.5x which looks highly over priced issue.

Lead Manager of Maagh Advertising And Marketing Services Ltd IPO:

  1. Inventure Merchant Banker Services Private Limited

Registrar of Maagh Advertising And Marketing Services Ltd IPO:

  1. Satellite Corporate Services Private Limited

Company Address:

Maagh Advertising And Marketing Services Ltd 302, 3rd Floor, Kuber Complex, Opp. Laxmi Industrial Estate, New Link Road, Andheri West, Mumbai – 400053 Phone: +91 22 4603 3045 Email: info@maaghadvertising.in Website: https://maaghadvertising.in/

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