Identical Brains Studios IPO Review

Identical Brains Studios is a provider of computer-generated visual effects (“VFX”) services, offering comprehensive suite of VFX services in diverse range of projects such as films, web series, TV series, documentaries, and commercials. The operations are currently from India and the customers include some of the leading film and content producers, including major Bollywood Studios. They transform the imagination, ideas, and words into captivating visual realities.

The Promoter, Raghvendra Rai, has an extensive experience of around ten years in the VFX Industry and under his leadership, the company has rapidly emerged as a prominent player in developing proprietary workflow processes and technologies that enables their qualified, creative and technical personnel to provide cutting-edge VFX services to their customers.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,139.49 Lakh, ₹ 2,026.38 Lakh, ₹ 808.26 Lakh and ₹ 390.75 Lakh respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 433.14 Lakh, ₹ 779.29 Lakh, ₹ 235.74 Lakh, and ₹ 71.79 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022  were ₹ 240.54 Lakh, ₹ 534.65 Lakh, ₹ 161.28 Lakh, and ₹ 51.01 Lakh respectively.

For the Identical Brains Studios IPO, the company is issuing shares at a pre-issue EPS of ₹5.18 and a post-issue EPS of ₹3.81. The pre-issue P/E ratio is 10.42x, while the post-issue P/E ratio is 14.17x against the Industry P/E ratio is 15x. The company's ROCE for FY24 is 103.52% and RoE for FY24 is 71.66%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Identical Brains Studios showing potential listing gains of 51.85%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Identical Brains Studios Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

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