Apr 13 2022 8:42:08 PM
Congratulation all alotee.
I did not get allotment. Hold for long term.
Apr 5 2022 12:40:14 PM
The company primarily makes steel products. I dont think Indian steel industry needs an introduction. The industry has one unit for sponge iron and another for pipes that include feedstock production as well.
Valuation: The offer is coming with P/E ratio of 14.4 and P/B ratio of 1.82. In general it looks very attractive. But comparing with the giant peers like TATA steels (4.25 & 1.75) and JSW (8.02 & 2.85), the valuation looks high. The company has yielded good return with RoNW (avg) of 19.85, RoE of 15.5 and RoCE of 19.8.
Business potential: Ofcourse, it has a lot of opportunity. Their facility utilization is more that 70 % as an average. From this offering, atleast 50+ cr will be used for capex. Two new plants will be set up to increase the production capacity by 37 % and also they are investing to upscale feedstock production. The company has average trade receivable period less than 30 days. Addition of 40+ cr for capitals will help the circulation easier. Overall, the company has clear plan and future potential.
Financials: The net worth of the company is 83 cr, while its borrowings stands at 88 cr. Moreover, borrowings increased gradually (51 - 62 - 76 - 85). Nearly 33 % of the earnings goes to interest. The IPO money may not be used for reducing debts. This disturbs little bit.
Post listing promotor (including group) holding will be 67 %.
My opinion: The valuation is reasonable, but not the best in the industry. Has good business potential and plans. The debt part is not good. Overall, this good not the best. I will apply in retail category, certainly not in full force, as i have its giant peers already in my portfolio.
Apr 5 2022 10:24:19 AM
Thank admin ji...
Apr 4 2022 10:19:41 PM
Wait for the tomorrow subscription. The GMP is almost near to 0. Apply if QIB > 10x and HNI > 20x. most likely it possible tomorrow.
Apr 4 2022 4:45:47 PM
Kindly give suggestion on hari om pipe IPO
Apply or Not ???
Apr 4 2022 12:57:36 PM
Can we apply?