DIENSTEN TECH IPO Review

Diensten Tech Limited (DTL) is an IT Service Organization, having focus on Professional Services, Corporate Training including eLearning Digital Content Solutions and Managed Services to provide business benefits to their customers and prospects in the shortest possible time with high quality delivery solutions at competitive rates.

The Company is backed by strong and professional Promoter named, MR. ABHISHEK SINGHANIA, who has 32 years of experience in Project Management, Strategic planning and business development has lead the Company’s operational growth together with the Board and Leadership Team.

Financially, Diensten Tech revenue decreased from ₹525.06 Lakhs in FY21 to ₹76.53 Lakhs in FY22 and further jumped to ₹3,760.31 Lakhs in FY23 and currently at ₹2,620.92 Lakhs in 9MFY24. Similarly, EBITDA decreased from ₹200.32 Lakhs in FY21 to ₹18.53 Lakhs in FY22 and further increased to ₹149.24 Lakhs in FY23 and currently at ₹118.42 Lakhs in 9MFY24. The PAT also decreased from ₹117.07 Lakhs in FY21 to ₹1.45 Lakhs in FY22 and further increased to ₹16.06 Lakhs in FY23 and currently at ₹-171.70 Lakhs in 9MFY24. This does not indicate a steady growth in financial performance.

For the Diensten Tech IPO, the company is issuing shares at a pre-issue EPS of ₹0.29 and a post-issue EPS of ₹0.19. The pre-issue P/E ratio is 344.82x, while the post-issue P/E ratio is 525.31x against the industry P/E ratio of x. The company's ROCE for 9MFY24 is 20.74%, and ROE for 9MFY24 is 67.49%. These metrics suggest that the IPO is not at all fairly priced.

The Grey Market Premium (GMP) of Diensten Tech indicates potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the IPO for listing gains or long term Investment purposes.