Micropro is an IT service company engaged in the business of Software Development, Data Processing, and Software Training. The company’s tech team comprises more than 100+ professionals. The company serves customers from countries like India, UAE and Africa. The company also provides software solutions for the government sector, PSU’s and corporate clients.
IPO Review
| Parameters | Score (0-5) | Comments |
|---|---|---|
| Promotors/Sr. Management & Work Ethics | 2 | Well experienced promotors. No red flags as per the RHP – open criminal proceedings, tax proceedings, etc. except a couple of small civil suit litigations against the company and a handful of them against the group companies. |
| Company Financials | 3 | Top-line and bottom-line growth seem to be in moderation. FY 24 projections don’t look good. ~75% of revenue comes from India operations and ~20% of it comes from UAE operations. |
| Segment Growth Opportunity | 3 | No moat and highly competitive business. Moderate growth is expected for the sector. |
| Asking Valuation (compared with Peers) | 2 | Asking PE is ~41, peers are in the range of 20-40. Considering the financials, the asking valuation is high. |
| Lead Manager’s past performance | 4 | Had just one prior listing, which was at the premium of 99%. |
| Consolidated Score | 2.7 |
Disclaimer – This is not an investment advice. Nobody has paid us to write this review. This analysis is for education purposes only.
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