Lots & Lots of public offers will be there this year onwards as a result of the decision of the Govt to raise minimum public holding to 25 percent.Wipro has only 10 percent,RPower only 15 ,Jetairways,DLF,Mundra port etc.RPower & Wipro will be under pressure on Monday.All these companies should further divest.
EPS for the year FY 10-11 is expected to be Rs. 5.50 per share. At the lower end of the price band of 82, PE multiple works out to 15 times. Similar companies in IT networking equipments / manufacturing are presently ruling at PE of around 8 times. Valuation is very much stressed . There are no project to be implemented. Structured IPO. The company has no dividend payment history. Keep 1000 km distance from the issue.
Another Emmbi in the making. Investors are advised to stay away from the issue.
Avoid Fatpipe Networks India: Hem Securities Published on Fri, Jun 04, 2010 at 14:10 Hem Securities has come out with a research report on Fatpipe Networks India. The broking firm has recommended investor to avoid the issue.
The report says, "The company is bringing the issue at price band of Rs 82-85 per share which will have the P/E multiple of 22-23 on post issue annualized EPS of Rs 3.69 (On Higher band of Rs 85/share).During the 9MFY10 the intangible assets contribute major part of gross block of company which is a cause of concern."
"Also, the company is presently exposed to risk of stiff competition level in industry. Hence looking at all above along with the high valuations at which company is bringing the issue, we recommend investor to avoid the issue," according to report.
Avoiding this ipo is better, there are several other shares to give good returns than this ipo. Because the company is not having any strong profitable positions, however it will give atleast 5% listing gain, it's sure...
govt' co's md 's of nhpc and sjvn is planning to wipe out all profits from the company and than they will take downwards the rate of of these shares to with adjusted the lower eps
this process will take 5 to 6 years at such time the rate could come upto 5to6 for nhpc and 4 to 5 for sjvn
this process will be done to accumulate shares at 4 to 5 rs they will make stable these rates for 8 to 9 years
so my advise is clearly is to sell both hydro power shares at currently if any one to buy it to buy at lower levels at rs 7 to 8 rs