₹384–404
Price band
KIRA Score report · IPO — D2C Asset Rental
RentoMojo IPO
64.9
GRADEBBB-
Neutral / Watchlist
Summary
The read
RentoMojo is India's leading D2C subscription platform for furniture and appliance rental, with revenue up 41.71% CAGR to ₹386.99cr and operating cash flow up 49.6% to ₹172.87cr. But the headline profit flatters the business: FY26 PAT of ₹104.30cr exceeds PBT of ₹67.66cr on a ₹36.64cr non-cash deferred-tax credit. Normalised for that, KIRA puts PAT nearer ₹50.63cr ^ and the true P/E near 83.9x ^ against a screened 40.7x. The offer is also 88.05% secondary — genuinely new growth capital is closer to ₹80cr.
Breakdown
Component scores
All component scores and the composite are KIRA analysis ^. Framework V1 Pre-IPO.
| Component | Weight | Score ^ |
|---|---|---|
| Fundamentals | 25% | 68 |
| Business Quality | 20% | 66 |
| Management | 20% | 65 |
| Market Position | 10% | 72 |
| Financial Strength | 10% | 70 |
| Valuation | 5% | 48 |
| Issue Quality | 5% | 50 |
| Risk | 5% | 52 |
| Composite KIRA Score ^ | 100% | 64.9 |
Strengths
- Revenue up 41.71% CAGR to ₹386.99cr; PBT +56.95% — genuine underlying operating improvement
- Strong cash generation: CFO ₹172.87cr, 44.6% of revenue, up 49.6% YoY
- Market-leading position — 253,825 subscribers across 29 cities, 83.34% asset occupancy, no direct listed peer in India
- ₹70cr of IPO proceeds retire debt, cutting D/E from 0.63x to an estimated 0.26x
Weaknesses
- FY26 PAT ₹104.30cr exceeds PBT ₹67.66cr on a ₹36.64cr non-cash deferred-tax credit — normalised PAT ~₹50.63cr ^
- 88.05% of the ₹1,255.57cr issue is an offer for sale; only ~₹80cr is genuinely new growth capital ^
- Post-issue promoter stake falls below 20% to 19.94%
- Demanding valuation: 83.87x tax-normalised earnings ^, above Delhivery and near double Blue Dart
Risk
What could go wrong
- Reported earnings quality depends on a one-time non-cash deferred-tax credit that will not repeat in FY27
- Nearly nine rupees in ten of the raise goes to existing investors and the promoter, not the business
- Post-issue promoter ownership below 20% offers limited alignment
- Asset repossession, refurbishment and reverse-logistics costs on an aging rental fleet
- Valuation carries little margin of safety on a tax-normalised basis
Provenance. Unmarked figures are sourced from the restated RHP financials and offer filings. ^ denotes KIRA analysis. Grade bands are provisional.
KIRA Markets provides research and financial education only. KIRA is not registered with SEBI as a Research Analyst and does not provide personalised investment advice. Nothing published here is a recommendation, offer or solicitation to buy or sell any security, nor a recommendation to subscribe to or abstain from any public offering. Investing in securities carries risk, including loss of principal. Past performance is not indicative of future results. Readers should consult a SEBI-registered adviser before making investment decisions.