Incorporated in 2001, Cell Point (India) Limited specialises in the multi-brand retail sale of smartphones, tablets, mobile accessories, and allied products. It collaborates with various renowned brands, including Apple, Samsung, Oppo, Realme, Nokia, Vivo, Xiaomi, Redmi, Techno, OnePlus, GIONEE, and more. In addition to mobile products, the company also engages in the retail sale of consumer-durable electronic goods, particularly smart televisions, from brands such as Xiaomi, Realme, and OnePlus.
With a network of 75 retail stores, Cell Point (India) Limited has a significant presence throughout Andhra Pradesh. Out of these stores, two are company-owned properties, while the remaining 73 stores are located on leased properties. This extensive retail network allows customers to access a wide range of products conveniently. The opening date for Cell Point (India) Limited IPO is Thursday, 15 June 2023 and the closing date is Tuesday, 20 June 2023.
Cell Point (INDIA) Limited IPO Details
Cell Point (INDIA) Limited IPO is a 100% fresh issue of 50,34,000 equity shares aggregating up to ₹5034 lakh. The offer has its price band set to ₹100 per share, and the lot size is 1200. The IPO will list on the NSE.
Cell Point (INDIA) Limited IPO Objective
The objectives of Cell Point (INDIA) Limited's IPO are listed below:
- Repayment of certain borrowings.
- Repairs and renovation of existing retail stores and setting of new retail stores.
- To meet the working capital requirements.
- For general corporate expenses.
Should you invest in Cell Point (INDIA) Limited?
Here are a few important factors to consider before investing in the IPO:
- Cell Point’s total income increased by 20.79% to ₹27004.43 lakhs for fiscal 2022 from ₹22356.02 lakhs for fiscal 2021, primarily due to an increase in revenue from operations/sales volume. Additionally, revenue from operations increased by 20.69 to ₹26916.41 lakhs for fiscal 2022 from ₹22301.48 lakhs for fiscal 2021.
- There are certain outstanding legal proceedings involving Cell Point (India) promoter and promoter entities which can adversely affect the company’s business, financial condition and results of operations.
- The company operates in a highly competitive market. The company’s business highly depends on the brand's recognition and reputation of the products it offers to sell.
Competitive Peers
Bhatia Communications & Retail (India) Ltd, Fone4 Communications (India) Ltd, and Jay Jalaram Technologies Ltd are the listed peer companies operating in the same business line.
Highlights of Cell Point (INDIA) Ltd
- Since its inception in 2001, Cell Point (India) Limited has grown to become a prominent player in the retail industry, offering a wide range of mobile and electronic products. With its focus on customer convenience and a robust retail presence, the company continues to serve the diverse needs of consumers in Andhra Pradesh.
- To facilitate customer purchases, the company offers various payment options, including credit/EMI facilities, UPI, vouchers, and pay-on-delivery services. To enable these payment options, Cell Point (India) Limited has established partnerships with major credit houses like Bajaj Finserv, Capital First, and TVS Credit Finance.
- Moreover, the products sold by the company are backed by limited warranties provided by the respective supplier companies. In the event of defects, the company is entitled to receive free replacements or services from the supplier companies, ensuring customer satisfaction and support.
Company Financials
| Particulars | As of 31- Dec-2022* (₹ lakhs) | As of March 31, 2022 (₹ lakhs) |
|---|---|---|
| Revenue from Operations | 22073.61 | 26916.41 |
| Total Income | 22167.6 | 27004.43 |
| Profit After Tax (PAT) | 580.96 | 164.63 |
| PAT Margin | 2.62 | 0.61 |
| EBITDA | 1381.16 | 1069.41 |
| EBITDA Margin | 6.23 | 3.96 |
| EPS | 24.19 | 14.47 |
| ROE | 30.31 | 12.32 |
Know before investing
Strengths
2Cell Point (India) has built a trusted, high quality and reliable brand of choice over the last two decades. Over the years, the company has received numerous awards that recognise the brand's strength.
Majority of the company stores are located in the Visakhapatnam, Costa, Vijayawada and Rayalaseema Zones. The stores are strategically located in areas of high foot traffic, drawing customers at all times of the day, on weekdays and weekends.
Risks
2The company has currently availed unsecured loans from certain lenders in the form of trade finance. If any lender seeks repayment of any such loan, Cell Point would need to find alternative sources of financing, which may not be available on commercially reasonable terms or at all, and this may affect the company’s liquidity.
The company’s operations are significantly located in the North Andhra Pradesh region, especially in Visakhapatnam. Any downturn or any failure to expand the operations or adverse developments affecting the operations in these locations may restrict Cell Point’s growth and may adversely impact its market share, revenue and results of operations.
