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Lloyds Luxuries Limited IPO

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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 :

  1. Using the recognised brand name.
  1. Our promoter has extensive experience, and our management staff is competent.
  1. E-commerce and Omni-channel in online business.
  1. The salon is at a prime location.
  1. 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:

  1. LLL operates in the fiercely competitive and dispersed men’s beauty market.
  1. For the indicated periods of the offer document, the company has recorded losses.
  1. Additionally, losses were carried forward.
  1. The issue has a negative P/E based on its financial metrics.
  1. 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.

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