Published: 05th Aug 2024

Unicommerce eSolutions IPO: The good and the bad

By: Value Research

About the company

Unicommerce eSolutions is an e-commerce enablement SaaS (software as a service) provider that offers a platform for D2C brands, sellers and logistic service providers to manage their operations more efficiently.

Total IPO size (Rs cr) 277   Offer for sale (Rs cr) 277   Fresh issue (Rs cr) 0   Price band (Rs) 102-108   Subscription dates August 06 - 08, 2024   Purpose of issue Offer for sale

IPO details

1106   Net worth (Rs cr) 69   Promoter holding (%) 39.4   Price/earnings ratio (P/E) 84.6   Price/book ratio (P/B) 16.1M-cap (Rs cr)

Post-IPO

Key financials 2Y growth (% pa) FY24 FY23 FY22   Revenue (Rs cr) 32.5 104 90 59   EBIT (Rs cr) 61.9 12 6 5   PAT (Rs cr) 47.5 13 6 6   Net worth (Rs   cr) 69 52 41   Total debt (Rs   cr) 8 0 0

Financial history

PAT is profit after tax EBIT is earnings before interest and tax

3Y average (%) FY24 FY23 FY22   ROE (%) 15.3 19 12.5 14.5   ROCE (%) 21.8 27.8 19 18.5   EBIT margin (%) 8.7 11.6 6.6 7.8   Debt-to-equity 0 0.1 0 0Ratios

Key ratios

ROE is return on equity ROCE is return on capital employed

The Good

Unicommerce eSolutions boasts a high client royalty. In fact, in FY24, its client retention ratio stood at 50.5 per cent.

The Good

The company has a diversified client base, as the top 10 clients contributed only 27 per cent to the total revenue in FY24.

The Bad

Unicommerce eSolutions faces stiff competition from its peers. Moreover, it is highly reliant on a single segment for revenue generation. To find out why, read the complete analysis by heading to the link below.