Focus Suits BSE SME IPO Review (Subscribe for Long Term)

Review By Dilip Davda on Jan 22, 2018

Focus Suits Solutions & Services Ltd. (Focus) is a qualitative fieldwork agency having its presence across 18 major countries in Asia, Middle East and Latin America. Company’s team of project managers handle projects execution of different fieldwork across  various industries like healthcare, automobiles, IT & Telecom, FMCG, Retail etc. Majestic Market Research Support Services Ltd. is the main promoter of the company. Focus is a member of ESOMAR and CASRO. Major portion of company’s revenues comes from overseas markets.

To part finance its investment plans in subsidiaries POPRSPL and GENPOP, working capital and general corpus fund needs,  Focus is coming out with a maiden IPO of 3608000 equity shares of Rs. 10 each at a fixed price of Rs. 18 per share to mobilize Rs. 6.49 crore. Issue opens for subscription on 30.01.18 and will close on 01.02.18. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME.  Issue constitutes 27.03% of the post issue paid up capital of the company. Average cost of acquisition of shares by the promoters is Rs. 19.10 per share. Issue is solely lead managed by Pantomath Capital Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Having issued initial equity at par, it raised further equity in a price range of Rs. 15 to Rs. 345 between August 2016 and August 2017. It has also issued bonus shares in the ratio of 16 for1 in April 2017. Post issue its current paid up equity capital of Rs. 9.74 crore will stand enhanced to Rs. 13.35 crore.

On performance front, Focus has (on a consolidated basis) posted revenue of Rs. 15.42 crore with a net profit of Rs. 1.29 crore for FY17. For first four months ended on 31.07.17 it has reported net profit of Rs. 0.56 crore on total revenue of Rs. 5.78 crore. Surprisingly, it has preferred to give details of first four months working instead of H1. For FY17 it has posted an EPS of Rs. 5.00 and RoNW of 28.37% on an equity base of Rs. 0.15 crore. If we annualize latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 14. Issue is priced at a P/BV of 1.06 based on its NAV of Rs. 16.88 as on 31.07.17 and at a P/BV of 1.05 on the basis of post issue NAV of Rs. 17.17. As per offer document, MRSS is the listed peer for this company. MRSS is trading at a P/E of around 36 (as on 16.11.17). MRSS has given handsome rewards since listing of its IPO and is the major stakeholder. On a standalone basis Focus has posted revenue/net profits of Rs. 6.02 cr. / Rs. 0.14 cr. (FY15), Rs. 7.51 cr. / Rs. 0.65 cr. (FY16), Rs. 9.51 cr. / Rs. 0.98 cr. (FY17). For first four months of the current fiscal it has reported net profit of Rs. 0.46 cr. on revenue of Rs. 3.96 cr.

On merchant banker’s front, this is the 58th mandate from its stable in last three fiscals. Out of last 10 listings, 1 opened around par and the rest with premiums ranging from 1% to 130% on the day of listing. 130% rewards are from the only main board IPO of this merchant banker i.e. Astron Paper.


Conclusion / Investment Strategy

Based on realigned business strategy reflected in consolidated working that is available only for past sixteen months, future prospects appears bright. Investment may be considered for long term.

Reviewer recommends Subscribing to the issue for Long Term.

Review By Dilip Davda on Jan 22, 2018

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Focus Suits Solutions IPO FAQs

  1. 1. Why Focus Suits Solutions IPO?

    The initial public offer (IPO) of Focus Suits Solutions & Services Ltd offers an early investment opportunity in Focus Suits Solutions & Services Ltd. A stock market investor can buy Focus Suits Solutions IPO shares by applying in IPO before Focus Suits Solutions & Services Ltd shares get listed at the stock exchanges. An investor could invest in Focus Suits Solutions IPO for short term listing gain or a long term.

  2. 2. How is Focus Suits Solutions IPO?

    Read the Focus Suits Solutions IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Focus Suits Solutions IPO what should investors do?

    Focus Suits Solutions IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Focus Suits Solutions IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Focus Suits Solutions IPO good?

    Our recommendation for Focus Suits Solutions IPO is to subscribe for long term.

  5. 5. Is Focus Suits Solutions IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Focus Suits Solutions IPO.

  6. 6. When will Focus Suits Solutions IPO allotment status?

    The Focus Suits Solutions IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Focus Suits Solutions IPO allotment status to check.

  7. 7. When will Focus Suits Solutions IPO list?

    The Focus Suits Solutions IPO will list on Friday, February 9, 2018, at BSE SME.

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