Mehul Telecom Ltd
The Company, Mehul Telecom Limited is in the business of operating a multi-brand mobile retail chain offering smartphones and Other electronic products and accessories through a hybrid "COCO" (Company Owned, Company Operated) and "FOFO" (Franchisee Owned, Franchisee Operated) retail model. Its retail portfolio comprises products from leading smart phone and phone accessory manufacturers viz., MI, Samsung, Vivo, Oppo, Realme, Nokia, OnePlus, Redmi, Nothing, Tecno, Intel, Infinix, Xiaomi and other popular Brands. In addition to handsets, the company retails connected lifestyle products and peripherals such as Air Conditioners, Refrigerators, Washing Machines, Televisions, wearables, audio devices, and power solutions like speakers, smartwatch, ear phones, head phones, tablets, mobile covers, phone chargers, screen guards, power banks, phone warranty plans, fire sticks, car holder clamps, pen drive etc. of various brands. Its stores support omnichannel checkout including UPI, mobile wallets, and integrated POS terminals. The Company operates under the brand name "Mehul Telecom". As on the date of Red Herring Prospectus, the company operates from total 80 stores across the state of Gujarat out of which 6 are COCO stores and 74 are FOFO stores.
Timeline
Subscription
Reports
Offer Details
Terms
Application Sizes
Managers & Registrar
Ownership & Proceeds
Shareholding
Objects of the Issue
- Funding of working capital needs;
- General corporate purposes
Anchor Book
Financials
Profit & Loss
| Financial Year | FY24 | FY25 | FY26 |
|---|---|---|---|
| RevenueCr | 0 | 115 | 200 |
| Operating ProfitCr | 0 | 8 | 14 |
| OPM% | - | 6.7 | 6.8 |
| PBTCr | 0 | 8 | 13 |
| PATCr | 0 | 6 | 10 |
| EPS | -1 | 8 | 13 |
Balance Sheet
| Financial Year | FY24 | FY25 | FY26 |
|---|---|---|---|
| Equity CapitalCr | 0 | 8 | 8 |
| ReservesCr | 0 | 9 | 20 |
| BorrowingsCr | 0 | 0 | 3 |
| Fixed AssetsCr | - | - | 1 |
| Total AssetsCr | 0 | 34 | 58 |
Cash Flow
| Financial Year | FY24 | FY25 | FY26 |
|---|---|---|---|
| Operating Cash FlowCr | 0 | -11 | -4 |
| Investing Cash FlowCr | 0 | 0 | -1 |
| Financing Cash FlowCr | 0 | 15 | 3 |
| Net Cash FlowCr | 0 | 4 | -1 |
Strengths & Risks
- Experienced Promoters and Management Team.
- Extensive Distribution Network in Gujarat.
- Comprehensive Product Range.
- Strategic Store Locations and Customer Experience.
- Low Capex Requirements for Growth.
- Strong Financial Partnership.
- Expansion in Districts across Gujarat.
- Leveraging Market Expertise and Customer Relationships.
- Increasing Brand visibility.
- Diversification in to other consumer durables.
- Opening and closing of stores is a regular part of the Company's business and depends mainly on the revenuegenerating potential of each location. Store performance is influenced by factors such as location, customer footfall, product mix, and operating efficiency. High-revenue stores are retained to strengthen its retail network, while underperforming outlets are rationalized or closed. This approach, while optimizing operations, exposes the company to risks of site selection errors, demand misjudgment, and closure-related costs.
- The company's operations and revenues are limited to and concentrated in the geographical region of the State of Gujarat. In the State of Gujarat also its business revenue is generated mainly from two districts viz., Rajkot and Morbi. Any adverse development affecting the company's operations in this region or any saturation could have an adverse impact on its business, financial condition and results of operations.
- The company has a limited operating history and may be subject to risks inherent in early-stage companies, which may make it difficult for investors to evaluate its business and prospects.
- A substantial portion of the company's revenues has been dependent upon a limited number of customers. Loss of any of the top customers or any reduction of business from any one of them may affect the financial performance of the Company.
- The Company had negative cash flow from operating activity in recent financial years, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
- The company's Registered Office and other premises from where the company operates are on lease basis and not owned. In case of non renewal on commercially acceptable / favourable terms in future, it may lead to disruption in the company's operations and / or higher rent, which in turn could have an adverse effect on its business prospects and financial condition.