🧠 At a Glance
Valencia India Ltd is hitting the SME IPO stage with a ₹48.95 Cr issue to fund 15 fancy villas and a clubhouse in Mount Abu. The company dabbles in everything from hospitality to real estate to FMCG exports. Strong growth, eyebrow-raising margins, and a price tag that screams “premium property” — literally and figuratively.
1. 🎬 Introduction with Hook
🧘♂️ “Imagine sipping chai in a luxury villa in Abu… now imagine funding it through an IPO.”
That’s basically Valencia India’s pitch.
Founded in 2017, the company is trying to become a hospitality-cum-real-estate-cum-import-export giant — all in one SME-sized package. With a club lease, ambitious resort expansion, and a ₹49 Cr IPO to finance it, Valencia wants to make your vacation dreams come true.
But should investors turn into accidental resort owners? Or is this IPO a timeshare trap in disguise?
2. 🏗️ Business Model (WTF Do They Even Do?)
Valencia India Ltd = A “Jack of All Trades” holding a property lease in one hand and a dairy-export contract in the other.
Here’s the thali:
- 🏡 Real Estate: Development of bungalows, malls, and apartments.
- 🛏️ Hospitality: Operates a leased club/resort in Mount Abu since 2017. They’re now building 15 new villas and a swanky clubhouse.
- 📦 Exports/Imports: Active in food and non-food FMCG trades — especially Middle East.
- 🧀 Agro + Dairy + FMCG Trading: No in-house brands, mostly trading.
- 🥂 Events Biz: Weddings, corporate picnics, birthday parties. Essentially your cousin’s shaadi planner… with an RHP.
A bizarre cocktail of businesses — if Airbnb, D-Mart, and Mahindra Lifespaces had a Gujarati child.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
Let’s talk paise.
| Metric | FY22 | FY23 | FY24 | 9MFY25 (Dec) |
|---|---|---|---|---|
| 🧾 Revenue | ₹4.19 Cr | ₹5.23 Cr | ₹7.11 Cr | ₹5.56 Cr |
| 💰 PAT | ₹0.25 Cr | ₹0.56 Cr | ₹1.94 Cr | ₹1.54 Cr |
| 🧈 EBITDA | ₹0.48 Cr | ₹1.07 Cr | ₹3.07 Cr | ₹2.51 Cr |
| 📈 Net Worth | ₹0.71 Cr | ₹1.27 Cr | ₹9.21 Cr | ₹10.48 Cr |
💥 ROE = 37.07% | ROCE = 28.36%
😮 EBITDA Margin = 43.15% (from a resort?)
🧠 Translation: Valencia turned into a profit powerhouse suddenly in FY24 — suspiciously right before the IPO.
4. 📉 Valuation – Is It Cheap, Meh, or Crack?
Here’s where your eyebrows should levitate.
- 🏷️ Price Band: ₹95–₹110
- 📗 Post IPO EPS: ₹1.58
- 🔢 Post IPO P/E: ~69.63x
- 📘 Book Value (Post): ~₹10.23
- 🔢 P/B: ~10.75x
🚨 For an SME resort operator with 19 employees and zero land ownership (just leases), this valuation is… luxurious. Like charging Taj Mahal prices for a tent in Pushkar.
💰 Fair Value Estimate (FV Range):
Based on 20x–25x normalized earnings → ₹31–₹39 per share
5. 🍿 What’s Cooking – News, Triggers, Drama
- 🍴 15 Villas + Clubhouse: ₹37.4 Cr from IPO going into this expansion
- 🤝 Club lease signed with Basil Buildcon: No formal agreement till 2019 — now under a 9-year lease
- 🧘 RCI Affiliation: A timeshare-esque model might be at play
- 💼 Aggressive margin expansion right before IPO = classic IPO “glow-up”
👀 Hint: EBITDA tripled. So did eyebrows.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
- 🏦 Debt (FY24): ₹1.47 Cr
- 🪙 Debt/Equity: 0.16 → Pretty low
🟢 Positives: Low leverage
🔴 Red flag: Most capital is now being raised from public to build more capex-heavy resort infra — despite being on lease
🧨 No asset ownership = No fallback cushion
7. 💸 Cash Flow – Sab Number Game Hai
- Operating cash flows aren’t detailed in the RHP segment, but:
- FY24 PAT ₹1.94 Cr
- Capex expected ~₹37 Cr from IPO funds
- No clarity on working capital cycles
This looks more like “fund-the-dream” money than sustainable operational finance.
8. 🧮 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 37.07% ✅ |
| ROCE | 28.36% ✅ |
| Debt/Equity | 0.16 ✅ |
| P/E (Post IPO) | 69.63 ❌ |
| EBITDA Margin | 43.15% 🤯 |
| Price/Book | 10.75 ❌ |
🔥 Margin and ROE = Too good to be true
💣 P/E and P/B = Fantasy zone
9. 💰 P&L Breakdown – Show Me the Money
The FY24 jump:
- Revenue up 36% YoY
- PAT up 246%
- Net Worth up 7x
- Margin explosion
🙃 Classic IPO trajectory — everything looks magical right before you ask for money. Coincidence? We think not.
10. ⚔️ Peer Comparison – Who Else in the Game?
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|
| Valencia India | 7.1 | 1.94 | 69.6x | 37.1% |
| Aurum PropTech | 19.3 | -15.7 | NA | NA |
| Suryoday Resort (non-listed) | NA | NA | NA | NA |
🧠 Verdict: No real SME peers with this exact combo — real estate, resort lease, and trading business. That’s also the problem. It’s not “unique,” it’s confused.
11. 🧩 Miscellaneous – Shareholding, Promoters
- 👑 Promoter: Mr. Keyur Patel
- 🧍♂️ Pre-Issue Holding: 88.66%
- 📉 Post-Issue: Not disclosed clearly
Also:
- 🧑💼 Full-time employees: Just 19
- 🧾 Event bookings & trading listed under same corporate umbrella
12. 🧠 EduInvesting Verdict™
📢 “Weddings, villas, FMCG trading — why build one business when you can confuse three?”
Valencia India Ltd looks like a classic pre-IPO glow-up. A niche hospitality project on leased land with suddenly high margins and a P/E of nearly 70.
💸 IPO money goes entirely into real estate assets the company won’t own — they lease it. At a ₹143 Cr market cap, you’re funding someone else’s wedding dreams.
😬 Verdict: Enjoy the club in Abu. Just don’t buy the club membership at ₹110/share.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Valencia India IPO, SME IPO June 2025, Mount Abu resort IPO, Real Estate SME, Valencia IPO review, overpriced IPOs India, SME Bookbuilding IPO, Greedy IPOs, Hospitality IPO, EduInvesting SME Review
