About :
Since its establishment in 2013, Lloyds Luxuries Limited has specialized in grooming men to a high standard by offering salon services and cosmetic goods. The business is the exclusive franchisee of Truefitt & Hill, a global brand that operates upscale barber shops all over the world and provides a wide range of beauty goods and salon services for men.
By March 31, 2022, 14 Truefitt & Hill barber shops operated by Lloyds Luxuries Limited will be located in 7 Indian cities. Up until 2043, the company is the franchisee under the “Truefitt & Hill” master franchise agreement. In India, Nepal, Sri Lanka, Bhutan, Vietnam, Myanmar, and Bangladesh, the business has the sole authority to grant sub-franchise agreements or to open stores directly under the “Truefitt & Hill” brand.
Additionally, the business in 2019 secured a 10-year exclusive franchise for MARY COHR, a French beauty salon with locations throughout the world.
Strengths :
- Using the recognised brand name.
- Our promoter has extensive experience, and our management staff is competent.
- E-commerce and Omni-channel in online business.
- The salon is at a prime location.
- System-driven methodology
Details on IPO :
The Lloyds Luxuries IPO will begin on September 28, 2022, and end on September 30, 2022. The bid period for the Lloyds Luxuries IPO is September 28, 2022, 10:00 AM–September 30, 2022, 5:00 PM. On the day of the issue’s conclusion, at 5 PM, UPI Mandate confirmation must be received.
3000 shares make up the Lloyds Luxuries IPO lot size. An individual retail investor may submit an application for up to 1 lot (3000 shares or Rs. 120,000.)
Objective of the Issue :
1. Covering the costs associated with opening additional stores
2. To pay back short-term loans
3. To satisfy requirements for working capital
4. Unifying Corporate Goals
5. To cover issue costs
IPO Review:
- LLL operates in the fiercely competitive and dispersed men’s beauty market.
- For the indicated periods of the offer document, the company has recorded losses.
- Additionally, losses were carried forward.
- The issue has a negative P/E based on its financial metrics.
- Simply avoid the IPO of this loss-making corporation.
Financial Performance :
In terms of financial performance, LLL reported turnover/net profit – (loss) of Rs. 28.02 cr. / Rs. – (3.24) cr. (FY20), Rs. 18.56 cr. / Rs. – (3.03) cr. (FY21), and Rs. 20.86 cr. / Rs. – (9.17) cr. for the previous three fiscal years (FY22). As a result, the company has been losing money for so long.
LLL has reported average negative EPS of Rs. – (25.52) and average negative RoNW of – (67.86)% over the past three fiscal years. Priced at a P/BV of 2.40 based on the issue’s post-IPO NAV of Rs. 16.67 per share and a P/BV of 4.88 based on the issue’s NAV of Rs. 8.19 as of March 31, 2022.
Dividend Policy :
In accordance with the disclosed periods in the offer document, the company has neither declared or paid any dividends. Following the IPO, it will implement a conservative dividend policy based on its financial performance and prospects for the future.
Conclusion :
The market for men’s beautification in which the company competes is extremely competitive and fragmented. The issue has a negative P/E and some carried-forward losses because it has been recording losses. Simply stay away from this loss-making company’s IPO.