IPO Analysis of Rashi Peripherals Limited

What Rashi Peripherals Limited do?

Two business verticals that RPL typically operates are as follows: 
• Personal Computing, corporate & Cloud Solutions ("PES"): firm sells embedded designs & products, cloud computing, personal computing devices, & corporate solutions under this sector. 
• LIT (lifestyle & IT essentials): This covers product distribution.

Rashi Peripherals Limited Financial Analysis

Analysis  

1. Rashi Peripherals Limited's revenue increased by 1.58% & profit after tax (PAT) dropped by -32.42% between financial year ending with March 31, 2023 & March 31, 2022.
Assets
2. Company's assets have shown significant growth over past few years, indicating expansion & possibly acquisitions/investments in new ventures.
3. This growth suggests positive outlook for company's operations & potential for future revenue generation.
4. Investors may view increasing assets as sign of business growth & stability, which could enhance company's valuation & attractiveness for investment.

Revenue

1. Company's revenue has experienced steady growth, reflecting increasing sales/service income over years.
2. This consistent revenue growth is positive indicator of company's performance & market demand for its products/services.
3. Investors may interpret growing revenue as sign of business strength & potential for higher profitability, which could lead to increased investor confidence & interest in company's IPO.

Profit After Tax

1. Despite fluctuations, company has maintained profitability, albeit at varying levels.
2. Decrease in profit after tax in most recent period could be attributed to factors such as increased expenses, one-time charges/market challenges.
3. Investors should assess reasons behind profit decline & evaluate company's ability to sustain/improve profitability in future before making investment decisions.

Net Worth

1. Company's net worth has steadily increased over years, indicating growth in shareholder equity & overall financial health.
2. Rising net worth demonstrates company's ability to generate & retain earnings, which contributes to its long-term sustainability & resilience.
3. Investors may perceive growing net worth positively, as it reflects company's value & financial stability, potentially increasing investor confidence & interest in IPO.

Reserves & Surplus  

1. Reserves & surplus of company have shown consistent growth, indicating retained earnings & accumulated profits over time.
2. Increasing reserves & surplus suggest strong financial position, providing company with resources for future investments, expansion, / dividends.
3. Investors may consider growing reserves & surplus as positive sign, reflecting financial strength & prudent management practices, which could enhance company's appeal for investment.

Total Borrowing    

1. It has increased steadily, indicating reliance on external financing to support its operations / expansion initiatives.
2. While borrowing can provide necessary capital for growth, excessive debt levels may pose risks such as higher interest expenses & financial strain.
3. Investors should carefully evaluate company's debt management strategies, repayment capabilities, & overall leverage levels before investing in IPO.

Rashi Peripherals Limited Key Performance Indicator

*Not annualized for 6 months ended September 30, 2022 & September 30, 2023.

Analysis

Revenue from Operations

1. Company's revenue has experienced significant growth, indicating increased sales / higher demand for its products/services.
2. Growth reflects positively on company's market position & revenue-generating capabilities.
3. Investors may interpret this growth as sign of business expansion & potential for future profitability, making company more attractive for investment.

Profit after Tax (PAT)

1. Despite slight decrease in PAT compared to previous period, company has maintained profitability.
2. Decline in PAT margin may be attributed to factors such as increased expenses, lower revenue growth, / one-time charges.
3. Investors should assess reasons behind decline in profitability & evaluate company's ability to sustain / improve its profit margins in future.

PAT Margin

1. PAT margin has decreased, indicating decline in profitability relative to revenue.
2. lower PAT margin may raise concerns about company's efficiency in managing costs & generating profits.
3. Investors should monitor trend in PAT margin over time to assess company's financial performance & profitability sustainability.

Debt/Equity Ratio

1. Company's D/E ratio has increased, suggesting higher reliance on debt financing compared to equity.
2. Higher D/E ratio may indicate increased financial leverage & potential risks associated with debt repayment obligations.
3. Investors should consider company's ability to manage its debt levels & assess impact of higher leverage on its financial stability & risk profile.

Return on Equity (ROE)

1. ROE has decreased, indicating lower profitability relative to shareholders' equity.
2. Decline may be due to factors such as decreased profitability / higher equity base.
3. Investors should evaluate company's ability to generate returns for shareholders & its long-term sustainability in creating value.

Return on Capital Employed (ROCE)

1. ROCE has decreased, indicating lower returns generated from capital employed in business.
2. Declining ROCE may signal reduced efficiency in utilizing capital to generate profits.
3. Investors should analyse reasons behind decrease in ROCE & assess company's operational efficiency & capital allocation strategies.