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Barbeque Nation Hospitality Limited IPO Message Board (Page 17)

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120. PSR |   Link |  Bookmark | March 21, 2021 11:58:11 AM
IPO Guru IPO Guru (1200+ Posts, 700+ Likes)
The number persons who are negative out weigh the number of persons with a positive view, overwhelmingly.

Type of business differs from company to company, hence, we cannot expect valuations on identical lines, best examples being ITC and Infoe Edge, where both are very good companies, but valuations are quite different..

This company is engaged in the restaurant business where margins are very high. However, there are plenty of problems like huge capital requirement, skilled manpower, wastage etc.

As long as they go on continuing expansion, there will be losses or marginal profits, as a whole, in which case valuations always looks stretched.

Once the expansion phase stops or slows, then share holders can expect good valuations, and in that case, the valuations would be exorbitant.(in case, they fail to generate profits even then, the entire investment would be "0".)

Once, company enters the profits phase, the share price will sky rocket, and it would be quite expensive.

Hence, in the present situation, it is fit for the persons having confidence on their business model, and future growth rather than for the persons applying for listing gain.

As far as I am concerned, I am going to apply definitely, irrespective of the valuations at present.
120.5. PowerUser |   Link |  Bookmark | March 22, 2021 12:30:52 PM (200+ Posts)
I second PSR opinion. I am in for this IPO. I spent more than 100 hrs in this restaurant and love the experience, that bias aside I am strong believer in growth stocks. I own stocks like Tesla, Airbnb etc. At the same time I balanced with Berkshire Hathaway which is great value. We buy business model believing in promoter vision, of course there is always risk.
120.6. ipobull |   Link |  Bookmark | March 22, 2021 12:50:38 PM
IPO Guru IPO Guru (1000+ Posts, 1000+ Likes)
PSR may buy as much as he can. For me, this IPO is a sure no-no. Greedy promoters have come to loot retail money.
119. sundark |   Link |  Bookmark | March 22, 2021 10:14:08 AM
Competitive strengths (4th point)

# Healthy financial position with a proven track record of revenue growth.

Profit After Tax      
Nov 20 ==> (1,006.48)      
Mar-20 ==> (329.28)      
Mar-19 ==> (383.86)      
Mar-18 ==> (58.00)

Is this called "healthy financial position with proven track record of revenue growth" ??
119.1. KrishnaTwentyFour |   Link |  Bookmark | March 22, 2021 10:23:14 AM
These values are in -ve,

So year over year their loss is increasing, reason might be they are expanding/increasing outlets...
118. Ajatin |   Link |  Bookmark | March 22, 2021 9:41:48 AM
LAXMI ORGANICS IPO ALLOTMENT TO BE OUT TODAY
117. Santosh Pareek |   Link |  Bookmark | March 22, 2021 9:34:09 AM
Barbeque Nation Hospitality Limited IPO - Brokers and Analyst Webinar today at 4:30 PM

Registration Link: https://zoom.us/webinar/register/WN_auq-RdDVRku1LW_vhLkK2Q
116. FinancePreneur |   Link |  Bookmark | March 22, 2021 7:52:38 AM
March 2020, total profit 300+ cr, Nov 2020, total profit 1000+ cr. What is all this. How can they earn a 700 cr profit when the whole of India was closed..
116.1. KrishnaTwentyFour |   Link |  Bookmark | March 22, 2021 8:32:51 AM
It''s in nigative...
115. Micky Kumar |   Link |  Bookmark | March 22, 2021 12:24:37 AM
What is the BBQ GMP?
114. ipo share |   Link |  Bookmark | March 21, 2021 11:30:37 PM
IPO Guru IPO Guru (1500+ Posts, 700+ Likes)
Seeing the market condition, it is a risky ipo with high valuation.
See what happened to ease my trip listing even after huge subscription.
So my request to forum members is to think twice before investing in this ipo.
113. KARTHICKRAJA |   Link |  Bookmark | March 21, 2021 11:22:10 PM
Promoter has agreed to pledge all his equity shares (post IPO lock in period) for securing a personal loan of 40 crores (PAGE NO 52 OF RHP, RISK FACTORS POINT: 21). Considering the fact that this company is already in deep losses, this is definitely a cause for concern provided one is planning to hold shares for a longer term!!!
112. ipobull |   Link |  Bookmark | March 21, 2021 10:37:07 PM
IPO Guru IPO Guru (1000+ Posts, 1000+ Likes)
Don''t take Raghu Raj seriously. He is testing your temper. Be Cool. This 5 Rupee face value stock will not get QIB and NII support because the company is continuously making losses like a Coffee Day and it is asking surreal price for it. Only some retail fools will get trapped in it. My advise is just shun this IPO. Also remember Corona cases are rising and restrictions are slowly being implemented in various states.
111. WhiteTiger |   Link |  Bookmark | March 21, 2021 10:32:08 PM
Jisko mehnga lag raha hain aur jo non veg ke khilaf hain wo na apply kare. Baki ke apply kare
110. MOHIT JAIN |   Link |  Bookmark | March 21, 2021 4:59:26 PM
Loss making company. Huge competitive market. No business during corona time. Still 7 star valuations. A big avoid. Just came to loot public money. Taking advantage of bull market.
110.1. arunARUN |   Link |  Bookmark | March 21, 2021 9:45:39 PM
IPO Guru IPO Guru (1800+ Posts, 1600+ Likes)
i agree. Big avoid
109. Pratik gupta |   Link |  Bookmark | March 21, 2021 8:49:20 PM
Shall we apply or not?
Anybody give right suggestion please?
109.1. arunARUN |   Link |  Bookmark | March 21, 2021 9:40:07 PM
IPO Guru IPO Guru (1800+ Posts, 1600+ Likes)
Decide on last day only in view of risk, carried forwarded losses, mis governance issues, Undefined role of Jubilant food as shareholder and a seat as director
May be you will be better informed to marry the risk by applying
108. Pratik gupta |   Link |  Bookmark | March 21, 2021 8:49:12 PM
Shall we apply or not?
Anybody give right suggestion please?
107. sha dows |   Link |  Bookmark | March 21, 2021 8:15:25 PM
Why such huge valuation for a loss making company?
106. IPO Rock Star |   Link |  Bookmark | March 21, 2021 6:44:06 PM
Listing will be on Rs 485.
105. BhagKris |   Link |  Bookmark | March 20, 2021 4:50:01 PM
BBQ
Total Debt - 295 Cr, IPO Size ~ 500 Crores
Total Shares (after IPO) - 3.34 Crores

Revenue from operations: Rs. 847 Cr. (+20.2% over prior year)
Earnings before Taxes, Interest Income : Rs. 168 Cr. (+12.4% over prior year)
PAT: Rs. (-33) Cr.

Once Company is debt free, even with 0% growth in next year, EPS would come around -> 50.29

At 500 Rs/share, P/E would come around 10 which is extremely cheap multiple for Restaurant Chain Business.

Jubliant have a P/E close to 250.

If we ignore 2021 results because of carona this share might have very good chances of giving good returns in the medium term (2-3 yrs)
105.3. BhagKris |   Link |  Bookmark | March 20, 2021 5:32:47 PM
17 crs shares? So you are saying company valued at 8500 crores. You must be kidding.
105.4. arunARUN |   Link |  Bookmark | March 20, 2021 9:25:34 PM
IPO Guru IPO Guru (1800+ Posts, 1600+ Likes)
Why should i Kid? Ask BRLMs who gave this valuations?
104. arunARUN |   Link |  Bookmark | March 21, 2021 9:37:38 AM
IPO Guru IPO Guru (1800+ Posts, 1600+ Likes)
This company will have 17.33 crore shares if IPO goes through. At price of Rs 500 it works out to market cap of around 8666 crores
Which is higher than
Burger King 5,225 cr
WestLife (Mcdonalds) 7.286 cr
Speciality Restaurants 200 cr
If we consider that Burger King IPO was sold at price of Rs 60 the contrast is shocking
Would love to understand logic. As comparison with Burger kIng and Westlife is unfair ; given they are QSR (quick service restaurants) who take advantage of smaller outlet sizes (means low rentals) and have items for low budget customers too. You may get something for Rs 100 in these chains but nothing in Barbeque
Really strange pricing
104.1. arunARUN |   Link |  Bookmark | March 21, 2021 5:41:41 PM
IPO Guru IPO Guru (1800+ Posts, 1600+ Likes)
I did wrong calculations. Market cap on issue price will be 1877 crores. This is revised calculations.
At this valuation it may not look expensive but concerns on business, governance and profit diversion by way of preferential share allotment remain
103. Chivitra |   Link |  Bookmark | March 21, 2021 4:49:14 PM
@AniketIAF Sir and Septa Sir, what''s your views on Barbeque Nation, shall we apply or not. Please guide. Also what''s your views on Anupam Rasayan ?
102. Mayur sonar |   Link |  Bookmark | March 21, 2021 2:03:40 PM
How many 3rd party application allowed in hdfc asba please help mr
102.1. Paymzia |   Link |  Bookmark | March 21, 2021 2:11:04 PM
IPO Guru IPO Guru (2200+ Posts, 4400+ Likes)
1
102.2. Vijay M Agrawal |   Link |  Bookmark | March 21, 2021 4:19:33 PM (300+ Posts)
3rd party application is not allowed in HDFC bank
101. arunARUN |   Link |  Bookmark | March 21, 2021 4:04:44 PM
IPO Guru IPO Guru (1800+ Posts, 1600+ Likes)
funny part of the issue is promoter attempt to encash the boom. If they are convinced that this price of 500 is good then why are they diluting
They dont have to dilute to meet any SEBI guidelines as the issue would have enough public portion without their offer for sale portion too