My Mudra Fincorp IPO Review

My Mudra has laid its foundation with the dream of creating a financially stable society. Altering the mindset of people, from a loan as a burden to a loan as a planned decision. Started in 2019 and now has successfully left its footprints in every state. My Mudra is the bridge between us and the banks which are preferred to take loans as the low-interest rates. They are our helpers in providing us with personal loans, home loans and business loans.

They benefit from the expertise and experience of their Promoters Vaibhav Kulshrestha and Nisha Kulshrestha, who actively advise them on business development, Sales & marketing, and overall corporate strategy and planning, which is instrumental in the growth of their business. Their Promoters, collectively have around 14 years of experience in the financial Service sector which has helped in determining the vision and growth strategies for the Company.
 
Financially, My Mudra revenue increased from ₹2,846.18 Lakhs in FY22 to ₹5,355.80 Lakhs in FY23 and currently jumped to ₹7,114.36 Lakhs in FY24. Similarly, EBITDA increased from ₹116.01 Lakhs in FY22 to ₹568.40 Lakhs in FY23 and currently at ₹1,266.36 Lakhs in FY24. The PAT also increased from ₹46.86 Lakhs in FY22 to ₹346.75 Lakhs in FY23 and currently at ₹835.52 Lakhs in FY24. This indicates a steady financial performance.

For the My Mudra IPO, the company is issuing shares at a pre-issue EPS of ₹10.09 and a post-issue EPS of ₹7.33. The pre-issue P/E ratio is 10.90x, while the post-issue P/E ratio is 15.00x against Industry P/E ratio is 16.15x. The company's ROCE for FY24 is 45.98% and ROE for FY24 is 66.20%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of My Mudra potential listing gains of 38% - 41%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the My Mudra Fincorp Limited IPO for Listing gain or long term investment purposes.