Cellecor Gadgets Limited IPO Message Board (Page 7)

Known names in anchor book, IPO’s with these anchors have provided decent listing gains
Company is in business of wearable gadgets which is a crowded business with low entry barriers and intense competition through pricing. It does not hav e in-house manufacturing facility and relies completely on third-party manufacturers.
YoY inventory jump from Rs 12 cr to Rs 51 cr
LT and ST borrowings jump from Rs 1 cr to Rs 20 cr. ST borrowings up from Rs 35 lacs to Rs 15 cr. Company seems to be relying more on ST borrowings to bridge its funding needs. As per CA certificate of indebtedness, these borrowing have further increased to Rs 45.23 cr as on 31-Aug-23, a jump of Rs 23 cr.
NBFC / Unsecured borrowings by company carry interest rate of 16.75% to 20%. Bank term loans carry interest rate of 9% to 16.5%. Promoter loan to the company is interest free.
Receivables jump from Rs 92 lacs to Rs 7.15 cr.
Sales up by 118%, up from Rs 121 cr to Rs 264 cr. Cost of sales down from 88% to 79%, boosting profitability. Other expenses up 4.5X, from Rs 7 cr to Rs 32 cr.
High cost of sales, high commission expense indicate commodity nature of business. Although company is spending a lot on advertisement and marketing, its results and impact on profits will not be seen immediately.
In April-23, Tano Investments, via preferential allotment, bought shares @ Rs 52 per share, IPO is priced at Rs 87-92 per share.
Management appears to be a team of 1st gen entrepreneurs, charged up and hands on
In other expenses, YoY, advertisement expense have jumped from Rs 15 lacs to Rs 5 cr, marketing expense from Rs 3 cr to Rs 12.6 cr, commission expense from Rs 8 lacs to Rs 5.5 cr, rent, rates and taxes from Rs 16 lacs to Rs 70 lacs, carriage & freight from Rs 2 cr to Rs 4.2 cr, festival expense from NIL to Rs 21 lacs and interest and penalties from Rs 45K to Rs 23 lacs.
As company is around 2 years old, receivables ageing does not provide any meaningful insight. Similarly no major litigation by / against company.      Top 10 customers account for 13% of sales whereas top 10 vendors supply 57% of material.
Company claims to have R&D team of 50 engineers to for product design, development and testing. As on 31-Mar-23, company had 211 employees. Company deposited PF of 100 employees for Jul-22 and 130 employees for Jul-23.
Company has received Rs 4.6 cr as advance from customers and it has to recover Rs 1 cr from employees. For a 2 year old company, to have Rs 1 cr recoverable from employees is unusual.

Cellecor Gadgets Ltd GMP ~ 50 Buyer / Sub2 ~ 50,000/- @ 10:30PM ## 15 September ##

TO ALL MEMBERS

I would appreciate if you could give the contact details of persons/companies
dealing with Buying of application pre IPO and also subject to allotment in Mumbai.
Reply is solicited urgently

Anchor book

How to recognize which one good and not good to buy IPO's. Please tell me what kind of information we need to refer before applying IPO's? Sorry I am new in this platform.

Seniors, Please help with your guidence.

> I generally look for interesting products and services. I prefer physical and identifiable products.

> I prefer a professionally managed company than a family governed company. However, if the product is good, capable founder with family run companies are okay.

> I rely on ROCE & ROE only. Prefer debt free, or debt less companies. In other words fundamentally strong companies.

> With time, we may guess the intent of management, whether they are here to dump thier dirt on us or to create long term wealth by expansion.

This is my thinking, Seniors may help refine Thank you.

Cellecor Gadgets Ltd Sub2 - 25000/- @ 08:00pm # 11 Sep

Yudiz Struggling at 190/-

Same LM
High Valuation of Yudiz and Cell core.

​@Arjun Rajkot  It's not struggling @ 190/- Buddy .. It quoted 208/- on 31st Aug 2023 with the volume 479200 qty .. "Struggling .. 😂" .. it crossed 200/- aggressively with heavy volumes .. today it's @ 190/- .. Struggling nathi karto 190 ye .. 208 thi pa6o aviyo 6e .. struggling word na use karo Bhai .. ✌️

Points Noteworthy:

1. Only 2 year prior financial history available, on the basis of which financial ratios are calculated
2. Totally borrowing capital infused growth in sales and profit.
3. Unsecured loans are high in number, with one of the lenders, Ravi Agarwal, no rate of interest mentioned. Further one of the lender, Trustmore Technologies is actually running its own Escrowpay business but as per RoC records its registered as a Real Estate Entity
4. Operative in very competitive environment.
5. High inventory and debt numbers with negative operating cash flows
6. Company's future prospects state emphasis on R&D, by introducing new products like Washing Machine, Trimmer etc. but till date all they do is procure from suppliers and user direct distributors to sell those.
7. What r&d can company show in Neckbands, mobile accessories , smart watch, smart tv etc is not stated
8. In April 2023, rights issue wass given at 52.59. Issue price at upper band is 92. Almost 75% premium.
9. Borrowings estimates for FY24 and forward are double as of current figures, so is the case with Trade Receivables.
10. Company has not shown any peers for financial comparison, giving reason for the entity to be not listed. Although it is comparing its products with the likes of LAVA, INTEX, BOAT, FIREBOLT, BOULT
11. 40% supply is dependent on one supplier with supplies are being attracted through providing advances to them
12. For the rise in sales company has given reasons like takeover of previous private entity by this listed entity and sending invoices in the name of this listed entity is one of the key factors contributing to the growth in sales.
13. Tax Rate is around 26% for FY 22-23 and 29% for FY 21-22
14. Company estimates 46,263.9 lakhs as sales in FY 23-24, I.E. 75% sales growth. And for FY 24-25 69,396 lakhs as sales with estimated growth in sales of about 50% from FY 23-24 levels.
15. Post issue EPS is 3.8, with P/E of 24.2. PAT estimates at current PAT margin for FY 23-24 comes around 1,397.16 lakhs, with EPS being 6.66 and P/E coming at 13.81.
16. 31 times increase in advertisement expense, 66 times increase in commission expenses, almost 5 times increase in marketing expense is seen from FY 21-22 to FY 22-23
17. LM Past Record is not good

Thanks for the effort @MuStrFc

LM is fraud... Not honored Fix deal in market... Beware of IPO...

Once chor always chor

Cellecor toh sach me Cell Chor nikla

Hem security one more from hem

Borrowings are on relatively higher side, assuming some make up for IPO.

Profit is 7 Cr ... 🤣

Agarwal's from Delhi.......I will not touch.

What fun do u get to judge on the basis of religion name ?? Azaad ho gaya bharat aur log abhy bhy aisi baatein karte hai

50% maal le gaye QIB

​@GrayIsTheNewBlack Sir , yes applying only selective SMEs offering good valuation.

​@svh Sir, good to hear that.
In my case with so many main board IPO's, have absolutely no fund left to allocate towards SME's.

1st year loss
Many compitition in market
Every day new watch and neckband coming in market