LOOKS LIKE MUST APPLY IPO AND BEST AMONG ALL THE CURRENT IPOS. i''ve looked all round the web and no brokerage has posted a review on this ipo. here are some interesting things:
1)post dilution p/e is 5.3 where as the industry p/e is 24+
2)post dilution debt to equity ratio will be .85 where as the entire industry is working capital oriented and most of the peers d/e ratio more than 1. so, comparitively comsyn looks attractive.
3)return on net worth (ronw) is 22% where as the industry average is around 11%.
4)companies top line and bottom line grew continously over the past 5 years. and the demand in packing industry and the companies past performance looks promising.
5) proceedings of the ipo are going to reduce the long term loans and this will add around 30-35 lak interest cost to bottom line.
6) most importantly, company is not gonna raise any debt for the next financial year and the entire working capital required (8.21cr) is gonna raised by internal acturials(i.e onbooks cash) and ipo proceedings.
7)company is optimistic about 20% revenue growth in this financial year, this is reflected in the expected working capital requirement table in the dhrp.
8) one of the closest comparable peer is emmbi industries. emmbi industries is commanding a market cap of 200cr with a revenue of 200cr net profit of around 10cr.. in syncom, we are getting it at 28cr market cap with 115cr revenues and a net profit of around 5.3cr (this is gonna increase as they are gonna reduce 4cr long term loan)
9) as one of our friend aman mentioned, Inventory days 31.03.15 : 59 days 31.12.15 : 65 days
Receivables days 31.03.15 : 49 days 31.12.15 : 52 days
looks decent. and the average receivable and payables percentage looks good for the past 5 years too.
10)company is adding many products into its portfolio and the past performance looks good.
11)company is gaining decent amount on forex conversion of foreign currency into inr as it has decent exports(even in this slow global growth period).
12)it has CARG of 20+ and such high growth companies in the high growth industry is available at a dead cheap p/e of 3.88 post dilution around 5.
i think its a seal and must apply ipo at this price.
Hi, I agree most of your points... Thanks for sharing the info. Here are -ve about the IPO. - Anil Chowdary was re-appointed as chairman on Feb, 2016 and his package revised from 12L to 42L per annum as DHRP page 209 . - Ranjan Chowdary''s salary for FY16 was @ 6L but going forward it will be 12L as in DHRP page 209 - this will impact bottom line for 50L.. so tradeoff to revenue growth of 20% for next FY. Bottomline/profit will be flat due to their higher remuneration. - Though SSPL is promoter(again, anil Choudhary & mohanlal choudhary are promoters of SSPL) having same line of business as COMSYN. - In P&L account, Employee benefit expesnse @ 694cr for 6 months ending dec 31, 2015 which is equivalent to entire FY2015. Why that much surge though no higher capacity utilization. - Big negative is: they are claiming 25% of revenues over the years as under other expenses in P&L. It shows, something is bad..
Johan/Septa/Egleye, I''m silent follower of this website and your postings over the years. I gone through the DHRP and found things as above. Please provide your comments.
Regarding Other Expenses out of Other Expenses of Rs. 23.66 Crores , Rs. 4.37 Crores represents power and fuel expenses, Rs. 7.98 Crores as Bag stiching Job Work), Rs. 1.59 Crores as Repair and Maintenance of P&M. these all are genuine expenses , considering highly Capital Intensive business model, all are justified expenses. I am not advocating this IPO but it have the potential of give enormous return to investor in short as well as medium terms.
@NKD and @ atul Commercial Syn Bags Ltd is issuing shares at a reasonable price and one can apply for both listing gains as well as for investment purpose. As for Advanced Syntex, it is in the same line of business that of Sysco. While ASL on an equity of around 8 crs post listing will have a NP 1.25 crs, Sysco on an equity of 8 crs has reported a NP of 3.75 crs and is available at Rs. 20/- Still some listing gains can be had in ASL.
jonam ji I also have a query I am willing to fill this ipo but I have money in od account only opened against fixed deposit, as od account is also considered current account can I apply through the od account.
just now in this forum I read that Asba not allowed for current accounts please clarify .
yes jonam sir that''s obvious :-)) I mean to ask any restriction that we can not use od account as it is current account and on this forum CLD faq''s question no 3 ( post no 3850) saying that ASBA facility not allowed in current account bank will not process it , I think its wrong
let say If I have a od limit of 150000 and I am applying for this ipo ( Rs 144000) , so can I do so or my application will be rejected later on because of current account ( OD)
jonam ji not credit balance from my limit , I did this in quess corp & I can check my details as well in bse site but now I have a fear that Is it possible because I use current account so my application will be rejected .
if the bank accepts and blocks the amount then there is no way for the registrar to the issue to find out whether its a current ac or savings account or od account. your app can be rejected if your details such as pan etc. differ from those from your DP account or your dp ac is inactive.
thanks sir , so no harm in applying in commercial syn bags as well with the same way, as if I withdraw from od and deposit in saving then my od account will start the interest meter but blocking directly there in OD will save interest
Bank will not block against od limit. There should be money in the account and not just limit. The money would be in FD and a limit to against that to withdraw in od ac will not work. Actual credit balance in current ac needed.
jonma ji can you send me your e mail account I will send you the printscreen shot of my bank account details for quess corp.
Actually I have open a od (overdraft) account against my fixed deposit to withdraw money whenever I need and I am blocking that amount instead of withdrawing .
in my bank of baroda account in one netbanking they are showing all my accounts with them linked with my saving account (FD, Rd, OD etc) & when I go for ASBA they are also giving option to choose which account I wants to block
I am new to the SME IPOs though i invest in NSE/BSE Ipos ..
Your help on the following doubts would be highly appreciated - 1. How do we apply for SME Ipos 2. Incase of over subscription, how is the allotment done? 3. Where can we see the subscription figures for these ?
1. You can apply through netbanking of SBI, BOB, union bank, axis bank, kotak etc using their online ASBA facilities.
2. Allotment is done on proportionate basis by lottery.
3. To see subscripton figure go to this link http://www.bseindia.com/markets/publicIssues/DisplayIPO.aspx?id=1134&type=FPO&idtype=1&status=L&IPONo=1207&startdt=6/30/2016
Actually this is the correct link for commercial synbags http://www.bseindia.com/markets/publicIssues/DisplayIPO.aspx?id=1137&type=FPO&idtype=1&status=L&IPONo=1210&startdt=6/30/2016
should we apply for this ips or not, your thoughts are more valuable for investors like us. also provide the allocation and listing dates of all SME IPO.
packaging is in demand and at 5 PE is looks good will certainly apply. Only thing is its annual production is 4 to 5 million which is like 50 lakhs sacks PA say it runs at 100% capacity selling price per average bag is Rs 174 per bag to get 86 crs turnover last time i checked plastic woven sacks price was 1 to 2 rupees max.... anyway need more info maybe the 5 million data is wrong or the whole company is fraud
@Septa sir Regarding capacity utilization, Page 179 of RHP, capacity utilization for FY 2014-15 is 8663 Mt/pa , which is 72.80% of installed capacity. hope this will resolve our capacity issue.
Inventory days 31.03.15 : 59 days 31.12.15 : 65 days
Receivables days 31.03.15 : 49 days 31.12.15 : 52 days seems both comfortable
Industry PE : 28 considering flat haircut of 60%, probable PE post listing will be 11.20 huge upside potential in the card
In addition they intend to utilise the proceeds of Rs. 402.76 Lacs for Repayment of loans, which will improve bottom line of company.
Risk may be witnessed Raw material PP Granules is by product of crude. if price of crude takes a downward trend for long time than company will face sharp deterioration in value of Inventory for onward sale purpose.
Awaiting for your response sir
2.3. Septa| Link| Bookmark|
June 30, 2016 11:12:23 AM
(4000+ Posts, 4600+ Likes)
so lets put some numbers Polyethylene high density is around 800 to 1000 dollars films is is 1750 to 2000 dollars still the numbers do not add up may be i am going the wrong way. However i am going to put one application my broker is bullish on this counter he actual wants me to apply in all 8 application in multiple lots. May be i will apply after he clears my doubt, My close friend is a chemical engineer and specialisation in Polyethylene may be he could give me better technical advice.
On raw numbers it does not add up may be once i get a some technical break up may be the production and sales number match up
I am new to the SME IPOs though i invest in NSE/BSE Ipos ..
Your help on the following doubts would be highly appreciated - 1. How do we apply for SME Ipos 2. Incase of over subscription, how is the allotment done? 3. Where can we see the subscription figures for these ?
1.the numbers seems not to add up for some reason also with 2 such volume it has massive working working capital issue 3. inventory valuation looks on the higher side given big slide in price as actual profit will be actual lower given the effect of this 4. on receivable front also it has issue 5. has a big debt on the balance sheet close to 28 crs
6. has group company running the same business or similar business which is big no no
however i am still going to put one application given IPO bull run no harm in test however it better then many other SME IMO
septa sir all seniors, is there any chance of negative listing as well in this ipo , same question for advance syntex limited , & is it sometimes difficult to sell sme ipo even after good listing because of liquidity problem