1. At a Glance
Umiya Mobile is hitting the SME street with a ₹24.88 crore IPO at a fixed price of ₹66 per share. Entirely a fresh issue of 37.7 lakh shares, the IPO opens July 28 and closes July 30, with listing on BSE SME by August 4. Minimum retail bid? A steep ₹2.64 lakh. High risk, high entry barrier.
2. Introduction
Imagine a neighborhood mobile store on steroids—149 outlets in Gujarat, 69 in Maharashtra—and now seeking market love through an SME IPO. FY25 profits shot up 141%, but margins are as thin as a screen protector. The question: is this IPO a value call or just a shiny new phone with an empty battery?
3. Business Model – WTF Do They Even Do?
Umiya Mobile is a multi-brand retail chain selling:
- Smartphones (Apple, Samsung, Xiaomi, Realme)
- Accessories (earbuds, chargers, wearables)
- Home Appliances (TVs, ACs, refrigerators)
Business depends on retail footfall and competitive pricing. Think Croma, but on an SME budget.
4. Financials Overview
FY25 results:
- Revenue: ₹601 Cr (up 33%)
- PAT: ₹5.7 Cr (up 141%)
- EBITDA: ₹10.9 Cr
- Net Worth: ₹14 Cr
Sales are booming, profits growing fast, but margin remains <1%.
5. What’s This Stock Worth?
- Pre-IPO P/E: 12.2x (EPS ₹5.42)
- Post-IPO P/E: 16.6x (EPS ₹3.98)
- Fair Value Range: ₹60–₹75.
Edu Punchline: Pricing leaves little room for error—growth is priced in.
6. What-If Scenarios
| Scenario | Outcome |
|---|---|
| SME market euphoria | Listing 20–30% premium possible |
| Market stays dull | Listing near ₹66 |
| Sales slip post-IPO | Stock could lose shine |
7. What’s Cooking (SWOT)
Strengths – Strong store network, brand partnerships, rising profits.
Weaknesses – Thin PAT margins (<1%), high debt.
Opportunities – E-commerce integration, market expansion.
Threats – Fierce competition, online discounts crushing margins.
8. Balance Sheet 💰
| (₹ Cr) | FY25 |
|---|---|
| Assets | 105.2 |
| Liabilities | 91.2 |
| Net Worth | 14.0 |
| Borrowings | 23.6 |
Debt high (D/E 1.69) but IPO funds repay ₹19 Cr loans.
9. Cash Flow (FY23–FY25)
| FY | Ops | Investing | Financing |
|---|---|---|---|
| 23 | Weak | Minimal | Debt heavy |
| 24 | Improving | Low capex | Debt up |
| 25 | Stronger | Store expansion | IPO aids |
Cash flow mirrors growth, but leverage weighs.
10. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 50.8% |
| ROCE | 27.6% |
| PAT Margin | 0.9% |
| EBITDA Margin | 1.8% |
| D/E | 1.69 |
ROE looks seductive, but it’s leverage-fueled.
11. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| 23 | 333.5 | 1.8 | 0.18 |
| 24 | 451.6 | 5.8 | 2.4 |
| 25 | 601.3 | 10.9 | 5.7 |
Revenue sprinting, profits finally waking up.
12. Peer Comparison
| Company | P/E | ROE | Margin |
|---|---|---|---|
| Umiya Mobile (Post) | 16.6x | 40.5% | 1% |
| Typical Retail SME | 15–18x | 20% | 2–4% |
Margins lowest, ROE highest—thanks to debt.
13. EduInvesting Verdict™
Umiya Mobile IPO is a high-growth, high-risk SME bet. Strong topline, debt cleanup via IPO, and store network are positives. But wafer-thin margins, fierce competition, and high valuation post-issue scream caution.
Final Take: Attractive growth story—but not for faint-hearted investors.
Written by EduInvesting Team | July 27, 2025
Tags: Umiya Mobile IPO, SME IPO, ₹24.88 Cr, Multi-Brand Retail, EduInvesting Premium
