Rikhav Securities IPO Review

Rikhav Securities Limited is engaged the business of equity broking, investing, and trading activities. They are registered with SEBI as a stock broker and hold memberships with BSE Limited (BSE), the National Stock Exchange of India (NSE), and the Multi Commodity Exchange (MCX). Their services encompass a comprehensive range of financial activities such as, equity broking, we offer cash delivery, intra-day trading, futures, and options.

The Promoters, Mr. Hitesh Himatlal Lakhani and Mr. Rajendra N Shah, each have over 15 years of experience in the broking industry and are the founders of Rikhav Securities Limited. Their industry knowledge and strategic vision have been instrumental in shaping the company's success. Additionally, Mr. Monil Rajendra Shah, another Promoter, has 3 years of experience in stock broking and mutual fund distribution. Their visionary strategies and leadership enable them to effectively anticipate, guide, manage, and develop key aspects of the business operations.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 9,615.83 Lakh, ₹ 11,134.26 Lakh, ₹ 5,452.43 Lakh and ₹ 4,298.31 Lakh respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 6,601.79 Lakh, ₹ 5,542.96 Lakh, ₹ 2,843.18 Lakh, and ₹ 2,580.85 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 5,037.32 Lakh, ₹ 4,264.63 Lakh, ₹ 1,957.17 Lakh, and ₹ 1,762.47 Lakh respectively. This indicate a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 14.23 and post-issue EPS of ₹ 11.14 for FY24. The pre-issue P/E ratio is 6.04x, while the post-issue P/E ratio is 7.72x against the Industry P/E ratio is 20x. The company's ROCE for FY24 is 29.48%, ROE for FY24 is 36.60% and RoNW 30.89%. The Annualised EPS based on the latest financial data is ₹ 33.62 and PE ratio is 2.55x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Rikhav Securities showing potential listing gains of 60.46%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Rikhav Securities 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. 

About the Author
 CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.