The IPO of Rs 600 crores comprises fresh equity shares worth Rs 300 crores and OFS of Rs 300 crores. The company is a leader in pure-play data analytics and insight company in terms of FY20 revenue.
Course5 Intelligence is a leading data analytics and insight company by revenue. They are an independent provider of data analytics, marketing, and customer analytics to omnichannel businesses, offering marketing analytics and insights, including dynamic customer segmentation, brand measurement and analytics, market mix optimisation, AI-powered research insights and market and competitive intelligence as some of their specialised solutions.
Course5 Intelligence IPO Objectives
- The company proposes to use the fund to fuel inorganic growth, product development and IP initiatives.
- Net proceeds from the IPO will help the company expand its geographical footprint.
Why should you invest in the Course5 Intelligence IPO?
- More enterprises are focusing on leveraging digital technology through their entire value chain, creating widespread scope for data mining and analytics.
- Their asset-light model doesn’t require heavy investment in physical assets.
- They have a global and diverse client base and have forged long-term relationships with them.
IPO Financials
| Particulars | FY21 | FY20 |
|---|---|---|
| Revenue From Operation | 2471.93 | 2558.41 |
| EBITDA | 482.13 | 310.80 |
| EBITDA Margin (%) | 19.50 | 12.15 |
| Profit After Tax | 297.20 | 169.28 |
| EPS | 2.66 | 1.44 |
| ROE |
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Strengths
4They have a diverse clientele across industries and geographies and forged long-term relationships with marquee clients.
Their asset-light business model keeps debt at a low level.
The company's global delivery team comprises data sources, analytics, and cloud tech stack experts.
Course5 Intelligence operates on a scalable business model with a steady financial performance.
Risks
4The primary source of revenue remains its key clients. Any disruption in maintaining long-term relationships will impact future cash flow.
The company’s future net cash flow might be impacted by business uncertainties arising from pandemic-like situations.
The company needs to keep growing its client base to continue revenue growth.
Failure to quick technology adaptation can hurt the company's future profits.
Peer Comparison
| Company Name | Total income (₹ million) | EPS | P/E | Dividend Yield |
|---|---|---|---|---|
| Course5 Intelligence Ltd | 2,571.99 | 2.51 | - | - |
| Happiest Minds Technologies Limited | 7,976.50 | 11.45 | 112.49 | - |
| Latent View Analytics Limited | 3267.08 | 5.10 | 103.31 | - |
