Points Noteworthy :
1. Good established presence in one state, gives confidence that company can do the same in other states too.
2. Business is nothing much, just rebranding of CCTV and associated peripherals. Cheaper their raw material, better the margins for installation of CCTV cameras.
Can venture into other electronic products that are associated to primary ones.
3. Most of the upcoming growth will be how well the company can market itself, which is why their objectives state setting up a new showroom to display products.
Also why most of the employees are in the sales and marketing team.
4. PAT Margins at 15% and even 110% projected sales growth going ahead. Unsustainable and could be one-off for IPO year. P/E is made to look cheap when its not.
5. D-Link comparison makes sense though not much since Dlink recently turned positive due to the data centre news. Nothing such for Prizor.
6. FY23 had almost 50% sales to KMP, one very outside reason why margins were subdued. For FY24, that's reduced to 10%.
7. Dependency on 5 clients for around 80% sales has concentration risk attached to it.
8. Small equity stake by G Vaid attracts attention for listing purposes. Small issue size complements this.
9. LM and MM have okayish track record.
10. Car and face detection cameras told by management are good growth drivers.
@Simply Vicky
Zerodha (Trading Account)
RHP
Top Contributor (400+ Posts, 100+ Likes)
IPO Mentor (1000+ Posts, 200+ Likes)
IPO Guru (2900+ Posts, 2200+ Likes)
