Usha Financial Services IPO Review

Usha Financial Services is a non-banking finance company (NBFC) registered with the Reserve Bank of India as a NBFC-ICC (Investmet & Credit) - base- layer- non-systematically important non-deposit taking NBFC with over 9 years of lending experience. They provide lending solutions to fellow NBFCs and Corporates, MSMEs, and individual, particularly to women entrepreneurs. Their services also extend to Electric Vehicle (EV) financing. They provide a diversified range of financial products to individuals, body corporates, NBFCs and MSMEs. 

The Company is led by Promoters, named, Mr. Rajesh Gupta, Mr. Anoop Garg and Ms. Geeta Goswami, possesses more than 13 years of experience in Financial Market and metal recycling.

The Revenues from operations for the period ended Sept 30th, 2024 and the Fiscals 2024, 2023 and 2022 were ₹2,681.26 lakhs, ₹6,396.05 lakhs, ₹4,618.73 lakhs, and ₹2,531.36 lakhs, respectively. The EBITDA for the period ended Sept 30th, 2024 and the Fiscals 2024, 2023 and 2022 were ₹1,773.94 lakhs, ₹4,776.85 lakhs, ₹3,552.20 lakhs and ₹1,623.05 lakhs, respectively. The Profit after Tax for the period ended Sept 30th, 2024 and the Fiscals 2024, 2023 and 2022 was ₹504.16 lakhs, ₹1,344.95 lakhs, ₹1,016.55 lakhs and ₹414.42 lakhs, respectively.

For the Usha Financial Services IPO, the company is issuing shares at a pre-issue EPS of ₹8.64 and a post-issue EPS of ₹6.18. The pre-issue P/E ratio is 19.44x, while the post-issue P/E ratio is 27.18x against the Industry P/E ratio is 45.47x. The company's ROCE for FY24 is 15.40% and RoE for FY24 is 14.30%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Usha Financial Services showing potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Avoid to the Usha Financial 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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