Are BoAt Unlisted Shares a good pick?

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About the Company – Imagine Marketing Ltd (boAt)

Imagine Marketing Ltd (boAt) is an India-based electronics brand founded in November 2013. Known for marketing audio-focused smart wearables and accessories. The business is carried under a legal name, Imagine Marketing Services Private Limited.

boAt designs and markets smartwatches and audio-focused accessories, like earphones, travel chargers, stereo headphones, home audio equipment, wireless speakers, premium rugged cables, and a comprehensive collection of mobile phone accessories. Furthermore, boAt markets its products through public events and collaborations with various influencers and sports teams.


Financial Highlights – Imagine Marketing Ltd

Financial YearTotal Assets in CroresTotal Revenue in CroresProfit After Tax in Crores
FY 2021 (as of 30 September 2021)Rs. 2,093.73Rs. 1,313Rs. 86
FY 2020Rs. 190.50Rs. 609Rs. 47
FY 2019Rs. 83.93Rs. 225Rs.8

Positive on boAt’s business model

  • Offline + Tier2+ Cities expansion : Leveraging existing distributors and their relationships with local retailers. Plus using online platforms to service more areas
  • Market Leader on online e-com platforms : Digital channels and marketplaces account for more than 85 per cent of the company’s total sales, and it maintains its position as the leading brand on those marketplaces.
  • Synergies: In the interest of improving its products, the company has sought out relationships with component suppliers like Qualcomm (a shareholder in the parent company), Google, Dolby, and Bharat FIH.
  • Profitable for last 3 FYs
  • Asset Light Approach : The company leases out offices and warehouses instead of purchasing them so that capital expenditure remains minimal.
  • High ROCE of 60%+ : 15 per cent in the last three fiscal years and 66.8 per cent in the most recent fiscal year.

Pros of investing in boAt IPo

  • Imagine Marketing Ltd (boAt) is one of the largest digital-first brands in India, that holds leading market positions.
  • It is a consumer brand with a clear value proposition and a strong market position.
  • Distinctive marketing capabilities can generate greater consumer engagement and high sales levels effectively.
  • Backed by real-time feedback from sales channels and customers, the company can develop products on a timely basis and stock those that are most in-demand.
  • The in-house design team of boAt Labs has worked on several projects aimed at improving the products of the company. boAt says that this has helped it to create a product line tailored to the Indian market.

Cons of investing in Imagine Marketing Ltd (boAt) IPO

  • The company has to rely on several third-party suppliers to produce its products.
  • Similarly, the company has to rely on its relationship with digital marketplaces and offline retailers.
  • The gross margins can be affected by the occurrence of pricing pressures from marketplaces and consumers.

Understanding Imagine Marketing Ltd (boAt) Valuation

Number of Shares Outstanding (in INR Cr.)13.54
Price Per Share (as on 19th September 2022)750
Current Market Cap (in INR Cr.)10,159
Current Market Cap (in USD Bn.)1.28
IPO Valuation (in USD Bn.)1.5
IPO valuation (in INR Cr.)11,955
Potential upside (in %age)17.19%

Tentative valuation for IPO has been taken from relevant news sources.

In case the IPO guidance varies the calculations will have to be updated accordingly.

As per estimates, 600-700 looks might be a good range to invest in boAt. Caution should be exercised at prices higher than that.

To invest in Imagine Marketing Ltd (boAt), Click Here

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