Rosmerta Digital Services IPO Review

Rosmerta Digital Services, a rapidly expanding division of the Rosmerta Group, renowned leaders in E-governance, Transport, and Road Safety in India. At Rosmerta Digital, they strive to lead with cutting-edge technology and deliver innovative, tech-driven solutions across various sectors. Their mission is to exceed customer expectations and positively impact the lives of 100 million Indians by 2030. 

The Company is led by strong experienced Promoters, namely, M/S ROSMERTA TECHNOLOGIES LIMITED, M/S SHREE BANKEY BIHARI FAMILY TRUST, MR. KARN VIVEK NAGPAL, MR. KARTICK VIVEK NAGPAL.

The revenues from operations for period ended September 30, 2024 and Fiscals ended 2024, 2023 and 2022 were ₹9,25,357.00 Thousand, ₹8,41,907.00 Thousand, ₹2,97,891.00 Thousand and ₹20,270.00 Thousand respectively. The EBITDA period ended September 30, 2024 and Fiscals ended 2024, 2023 and 2022 were ₹2,02,438.00 Thousand, ₹1,53,634.00 Thousand, ₹30,466.00 Thousand, and ₹273.00 Thousand, respectively. The profit after tax for period ended September 30, 2024 and Fiscals ended 2024, 2023 and 2022 were ₹1,48,372.00 Thousand, ₹1,05,652.00 Thousand, ₹16,187.00 Thousand, and ₹-301.00 Thousand respectively.

For the Rosmerta Digital Services IPO, the company is issuing shares at a pre-issue EPS of ₹3.00 and a post-issue EPS of ₹2.00. The pre-issue P/E ratio is 48.84x, while the post-issue P/E ratio is 73.47x against the Industry P/E ratio is 282x. The company's ROCE for FY24 is 1.03% and RoE for FY24 is 1.53%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Rosmerta Digital Services showing potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Rosmerta Digital Services Limited IPO for Listing gain or long term investment purposes.

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.
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