Alpha AMC

𝗛𝗮𝗽𝗽𝘆 𝗥𝗮𝗺 𝗡𝗮𝘃𝗮𝗺𝗶 🏹✨

May the values of dharma, discipline, and wisdom guide your journey towards long-term wealth and prosperity. 📈

Celebrate this auspicious occasion with faith, purpose, and a vision for growth.

𝗜𝗣𝗢 𝗼𝗳 𝗡𝗼𝘃𝘂𝘀 𝗟𝗼𝘆𝗮𝗹𝘁𝘆 𝗟𝗶𝗺𝗶𝘁𝗲𝗱: 𝗗𝗮𝘁𝗮-𝗗𝗿𝗶𝘃𝗲𝗻 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺 𝗗𝗲𝗯𝘂𝘁𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗦𝘁𝗼𝗰𝗸 𝗠𝗮𝗿𝗸𝗲𝘁

With a SME IPO, Novus Loyalty Limited, a digital loyalty and rewards platform based in Gurgaon, will debut on the stock exchange at a price range of ₹139–146 per share. Through the public offering, the company hopes to raise about ₹60 crores.

𝗔𝗻 𝗼𝘃𝗲𝗿𝘃𝗶𝗲𝘄 𝗼𝗳 𝘁𝗵𝗲 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀

A Gurgaon-based business called Novus Loyalty Limited runs a technologically advanced platform that helps businesses manage their reward-based engagement initiatives, loyalty programs, and incentive campaigns. The business serves clients in the BFSI, Fintech, Retail, E-commerce, and Telecom sectors, where data-driven customer engagement is crucial.

𝗠𝗼𝗱𝗲𝗹 𝗼𝗳 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀

With a platform-led business and an asset-light business model, the company makes money from the following sources:

• Management of Loyalty Programs

• Campaign Implementation

• Reward fulfillment (incentives, gift cards, and vouchers)

The following elements fuel the company's expansion:

• An increase in the quantity of business clients

• A rise in the quantity of campaigns carried out

• A rise in partnerships and reward transactions

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲

The following is the company's financial performance:

• Revenue increased by approximately 32% at a Compound Annual Growth Rate (CAGR) of approximately 32%, from ₹59.6 Cr in FY23 to ₹104.6 Cr in FY25.

• The FY EBITDA margin was about 4.8%.

• PAT increased from ₹5.8 Cr in 6M FY26 to ₹3.58 Cr in FY25.• With no debt and a high asset turnover rate of about 3.8 times, the return on equity (ROE) is robust at about 32%.

𝗜𝗣𝗢 𝗚𝗼𝗮𝗹𝘀

The IPO proceeds will be used by the company for:

• Modernizing technological systems• Growing the company and bringing in new customers

• Corporate objectives and general working capital

𝗟𝗠𝗩𝗧 𝗦𝗻𝗮𝗽𝘀𝗵𝗼𝘁

: Skilled marketers with a long history in the loyalty solutions sector.

: Moderate, motivated by a reward ecosystem, enterprise connections, and technology

64 times FY25 earnings is the valuation, which is somewhat higher.

: 64x FY25 earnings, which is on the higher side.

Timing: Entering the market amid strong demand for digital loyalty solutions, but the premium valuation and SME volatility make near-term entry timing slightly uncertain.

The bottom line

With a strong industry background, Novus Loyalty is a capital-efficient, fast-growing digital engagement platform. It is, nevertheless, trading at a premium valuation with modest margins.

𝗘𝗶𝗱 𝗠𝘂𝗯𝗮𝗿𝗮𝗸! 🌙✨

May this festive season bring prosperity, happiness, and strong financial growth to your journey ahead. 📈

Invest wisely. Grow consistently. Celebrate abundantly.

𝗔𝗽𝘀𝗶𝘀 𝗔𝗲𝗿𝗼𝗰𝗼𝗺 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝗜𝗣𝗢 – 𝗣𝗿𝗲𝗰𝗶𝘀𝗶𝗼𝗻 𝗔𝗲𝗿𝗼𝘀𝗽𝗮𝗰𝗲 𝗦𝗠𝗘 𝗘𝗻𝘁𝗲𝗿𝘀 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀

Apsis Aerocom Limited, a precision engineering and aerospace components manufacturing company based in Bengaluru, is set to make its stock market debut through an SME IPO with a price band fixed at ₹104-₹110 per share. The company aims to raise ₹35.77 crore through this public issue.

𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄

Apsis Aerocom Limited is a precision engineering and aerospace components manufacturing company. The company manufactures machined components and assemblies for aerospace and other industries.

The manufacturing facility is located in the Peenya Industrial Area in Bengaluru. Bengaluru is a major aerospace manufacturing hub in India. The industry in which Apsis Aerocom operates is a high-barrier ecosystem that requires companies to be equipped with advanced machines, such as CNC machines.

𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗠𝗼𝗱𝗲𝗹

Apsis Aerocom’s business model is a manufacturing-driven business model in which the company generates revenue by manufacturing and selling machined components used in aerospace and other industries.

The growth in this industry is mainly driven by capital expenditure because companies in this industry add more machines in their manufacturing facilities to enhance production capacity.

𝗧𝗵𝗲 𝗴𝗿𝗼𝘄𝘁𝗵 𝗳𝗼𝗿 𝗔𝗽𝘀𝗶𝘀 𝗔𝗲𝗿𝗼𝗰𝗼𝗺 𝗶𝘀 𝗱𝗿𝗶𝘃𝗲𝗻 𝗯𝘆:

• Utilisation of machines

• Increasing capacity through new machines

• Repeat orders from aerospace and industrial customers

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀

The company has reported impressive financial performance over the last few years.

• The revenue has grown from ₹10.37 Cr in FY23 to ₹20.49 Cr in FY25, with a ~40% CAGR over the period.

• The company has reported an EBITDA of ₹10.01 Cr with an EBITDA margin of ~49.8%.

• The PAT stands at ₹6.64 Cr with a PAT margin of ~32.4%.

The return ratios are impressive as the company has reported an ROE of over 90% in FY25 due to its efficient asset turnover.

𝗜𝗣𝗢 𝗢𝗯𝗷𝗲𝗰𝘁𝗶𝘃𝗲𝘀

The company plans to utilise the IPO proceeds towards capital expenditure, including the purchase of new machinery to improve its manufacturing capabilities.

𝗙𝗶𝗻𝗮𝗹 𝗩𝗲𝗿𝗱𝗶𝗰𝘁 – 𝗟𝗠𝗩𝗧 𝗟𝗲𝗻𝘀

: The promoters have over a decade of experience in the precision engineering industry.

: The company has an entry barrier due to the capital and expertise required.

: The IPO is priced at ~20 times its earnings, which is reasonable.

𝗘𝗹𝗳𝗶𝗻 𝗔𝗴𝗿𝗼 𝗜𝗻𝗱𝗶𝗮 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝗜𝗣𝗢 - 𝗔𝗴𝗿𝗼 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗶𝗻𝗴 𝗦𝗠𝗘 𝗘𝗻𝘁𝗲𝗿𝘀 𝘁𝗵𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀

ELFIN AGRO INDIA PRIVATE LIMITED is an agro-processing company that is making its entry in the SME sector through its IPO, which is priced at ₹47 per share for a total of ₹25.03 Cr.

𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗦𝘁𝗼𝗿𝘆

Elfin Agro India Limited is an agro-processing company that has a manufacturing unit in Bhilwara, Rajasthan. Elfin Agro India Limited is in the business of wheat flour milling and mustard oil extraction.

𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗠𝗼𝗱𝗲𝗹

Elfin Agro India Limited is an agro-processing company, which means that it is in the business of processing raw materials that are then converted into final products. Elfin Agro India Limited's revenue model is a B2B model, which means that Elfin Agro India Limited is selling its products to distributors, whereas Elfin Agro India Limited's profits are based on the procurement of raw materials. Elfin Agro India Limited is in the business of agro processing, which means that Elfin Agro India Limited is in a commodity-driven business, which means that Elfin Agro India Limited cannot increase its product price.

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀

Revenue has grown from ₹101.39 Cr in FY23 to ₹145.86 Cr in FY25, growing at a CAGR of around 20%. EBITDA stands at ₹8.13 Cr with a margin of 5.6%, and PAT is at ₹5.08 Cr with a margin of 3.5%. The company has shown a rise in return ratios, with a ROE of around 37% in FY25.

𝗜𝗣𝗢 𝗢𝗯𝗷𝗲𝗰𝘁𝗶𝘃𝗲𝘀

The funds raised from the fresh issue will be used to support working capital requirements and general corporate purposes, hence providing the company with a cushion against its dependency on debt.

𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝘀

Revenue growth, demand for staple food, and improving profitability ratios with operating leverage and procurement benefits.

𝗥𝗶𝘀𝗸𝘀

Commodity business with low margins, working capital-intensive business, dependency on raw material price cycles, and negative operating cash flows in FY25 because of a rise in inventory and debtors.

𝗙𝗶𝗻𝗮𝗹 𝗩𝗲𝗿𝗱𝗶𝗰𝘁 — 𝗟𝗠𝗩𝗧 𝗟𝗲𝗻𝘀

: The company is a promoter-driven agro-processing business with significant industry experience.

: The company has a limited competitive advantage, given the commoditised nature of flour and edible oil processing.

: The company is trading at a premium of around 13x FY25 earnings and ~11x EV/EBITDA, reasonable for an SME player.

: The company benefits from structural demand for staple food products and increased regional processing capacity.