Recode Studios SME IPO Review | APPLY or AVOID?
Recode Studios started in 2021. It operates in the Beauty and Personal Care industry and provides make-up, skincare, body care, and beauty accessories to its customers across India. This business is based in Ludhiana, Punjab. This IPO review covers the main facts of the offer. It helps you decide if the issue fits your portfolio.
Recode Studios shows Rapid growth, but the sustainability of high profits remains a key point to consider for investors. This company sells beauty items through stores and websites, but it does not make any products itself.
IPO Details | |
|---|---|
| Issue Type | Book Building |
| IPO Category | SME |
| Face Value | ₹10 Per Share |
| Fresh Issue | ₹39.55 Cr. |
| Offer for Sale | ₹5.04 Cr. |
| Refunds Initiation | May 11, 2026 |
| Credit of Shares | May 11, 2026 |
| Listing At | SME |
Reservation & Lot Size | |
|---|---|
| Retail (Min) | 2 Lot | 1,600 Shares | ₹2,52,800 |
| Retail (Max) | 2 Lot | 1,600 Shares | ₹2,52,800 |
| S-HNI (Min) | 3 Lot | 2,400 Shares | ₹3,79,200 |
| S-HNI (Max)| 7 Lot | 5,600 Shares | ₹8,84,800 |
| B-HNI (Min) | 9 Lot | 6,400 Shares | ₹10,11,200 |
| Market Maker | 1,44,800 Shares |
✅ Strengths
⚠️ Challenges
Financial Update
The company released its restated financial statements for the year ending March 31, 2025. Total revenue was ₹47.94 crore, increased from ₹36.93 crore in the previous year. The net profit for the same period was ₹3.30 crore, an increase from ₹0.27 crore in the previous year. Assets increased by 38.55% compared to the previous year. The company showed a very big jump in profits recently. This growth happened right before the IPO launch. Investors must check if these margins can stay high. This trend should be carefully studied prior to any investment.
IPO Valuation
The upper price band is ₹158. This price leads to a Price-to-Earnings (P/E) ratio of 13.92 based on 2026 earnings. The average P/E for the industry is 199.3 based on listed peers. The company is asking for a high price compared to its older profits. The recent earnings make the valuation look cheaper than it is. This trend should be carefully studied prior to any investment.
IPO Objective
The company will use the proceeds of the offer to meet stated objectives:
- Funding of Capital expenditure towards the setup of a new Warehouse Facility at Ludhiana, Punjab, for ₹5.74 crores.
- Marketing and advertising expenses toward enhancing the awareness and visibility of our brand for ₹5.41 crores.
- Utilization towards Working Capital Requirements for ₹19.50 crores.
- General Corporate Purposes.
Promoters & Lead Manager
Peer Comparison
Below is the comparison of the company with its listed peers using data from March 31, 2025. Honasa Consumer and FSN E-Commerce Ventures are much larger listed peers. Recode Studios’ RoNW is higher than both Honasa and FSN. The P/E ratio is not available for Recode Studios.
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (₹ per share) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|---|
| Recode Studios Ltd. | 4.06 | 4.06 | 10.78 | – | 37.64 | – | – |
| Honasa Consumer Ltd. | 2.23 | 2.23 | 36.28 | 121.21 | 6.16 | 7.5 | – |
| FSN E-Commerce Ventures Ltd | 0.23 | 0.23 | 4.55 | 1,082.83 | 5.6 | 62.25 | – |
| Ravelcare Ltd. | 10.5 | 10.5 | 20.68 | 12.15 | 50.77 | 6.35 | – |
Financial data sourced from annual reports and stock exchange data, using restated financial statements for 2024-25. NAV per share (closing net worth divided by weighted average number of paid-up equity shares) and RoNW (net profit after tax divided by closing net worth).
IPO Review & Analyst Rating
The company sells beauty products under the Recode brand name. It uses a mix of stores and online apps to reach customers. Revenue is growing, but the company depends entirely on other people to make its products. The sudden rise in profits for the IPO year raises some questions about future performance. The share price is on the higher side for an SME issue.
| Analyst Name | Recommendation |
|---|---|
| – | – |
| – | – |
| – | – |
Disclaimer: The information on the site is informational only. The contents of this blog are not financial advice. You should not invest in any stock market instrument without consulting your Financial advisor.
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