JSW Energy Limited IPO Message Board (Page 16)

JSW energy may be another CASH COW in-waiting.

what is saying Tulsian for JSW Energy Ipo?
subscribed or not? Also consider EPS,PE,Profit margin?
Den Network - Applied for 195 sold on ipo date 150.
Cox and king - Applied at 330 sold on ipo date which price?

If discount is provided to retail investors, then will be putting full 1 lakh application

Simple Logic - IPO Market Means "LOOOOOT MARKET" Examples:

Reliance Power (Alliance Power)

NHPC (Nahi Hai Public Company)

Indiabulls Power (India Bear Power)

Euro Multivision (Door Raho Multivision)

Den Networks (Death Networks)

JSW Energy (Le Energy)

REC, SAIL and NTPC FPO (Will loot more and more as possible. After FPO price will be down by more than 40%

No one in India who can have objection on the above. Everyone's motto is to LUTO and LUTAO. That means "LOOT MARKET"

Friends, it seems JSW energy is giving discount for the retail investors in its IPO. Any idea about that? If that is so, it will be a good beginning, I suppose.

39. kksuper

Adjusted to stock-split (from Rs.10 to Re.1), made a high of 45.39 and low of 7.85 (lost 83% from life-high.

It is the failure of SEBI. IPO lost so much in just one year.

REgd Austral Coke

face value has been reduced from Rs 10 to 1

so effective IPO price is Rs 19.6

Austral Coke 8.63- It came with IPO on 04/09/2008 and lost 95% from issue price due to scam.

Facing significant resistance in 10 to 11.5 area. Looking weak.

If breaks 7.85 (November low), fall to 6.8, 5.7, 4.55 or even 2.9-1.25 zone.

Stop-loss below 7.85 is important.

jsw energy primum 1800 issue company perforance is very good and issue suscribe full

Vipul
Mr. Ravi explained very-2 well

Guys, Tell me frankly whether you are applying for this IPO. I am definitely applying if the pricr is between 20 to 40 per share. what do you guys think. I am applying for long term.

32. Vipul

Price-Earnings Ratio (P/E Ratio)

A valuation ratio of a company's current share price compared to its per-share earnings-

Calculated as:

Market Value per Share
                  = ------------------------
Earnings per Share (EPS)

For example, if a company is currently trading at Rs.43 a share and earnings over the last 12 months were Rs.1.95 per share, the P/E ratio for the stock would be 22.05 (Rs.43/Rs.1.95).

EPS is usually from the last four quarters (trailing P/E), but sometimes it can be taken from the estimates of earnings expected in the next four quarters (projected or forward P/E). A third variation uses the sum of the last two actual quarters and the estimates of the next two quarters.

Also sometimes known as "price multiple" or "earnings multiple".

The P/E is sometimes referred to as the "multiple", because it shows how much investors are willing to pay per Rupee of earnings. If a company were currently trading at a multiple (P/E) of 20, the interpretation is that an investor is willing to pay Rs.20 for Rs.1 of current earnings.

It is important that investors note an important problem that arises with the P/E measure, and to avoid basing a decision on this measure alone. The denominator (earnings) is based on an accounting measure of earnings that is susceptible to forms of manipulation, making the quality of the P/E only as good as the quality of the underlying earnings number.

Although a simple indicator to calculate, the P/E is actually quite difficult to interpret. It can be extremely informative in some situations, while at other times it is next to meaningless. As a result, investors often misuse this term and place more value in the P/E than is warranted.

A low P/E ratio does not necessarily mean that a company is undervalued. Rather, it could mean that the market believes the company is headed for trouble in the near future. Stocks that go down usually do so for a reason. It may be that a company has warned that earnings will come in lower than expected. This wouldn't be reflected in a trailing P/E ratio until earnings are actually released, during which time the company might look undervalued.


Some points to remember:

1. Variations exist using trailing EPS, forward EPS, or an average of the two.

2. Historically, the average P/E ratio of the Sensex has been around 16-23.

3. A better interpretation of the P/E ratio is to see it as a reflection of the market's optimism concerning a firm's growth prospects.

4.The P/E ratio is a much better indicator of a stock's value than the market price alone.

5. In general, it's difficult to say whether a particular P/E is high or low without taking into account growth rates and the industry.

6. Changes in accounting rules as well as differing EPS calculations can make analysis difficult.

7. Don't base any buy or sell decision on the multiple alone.

Thanks Jindal. I got to know.

dear sir,

what is meaning of PE, pl tell me with calculation, and how can we calculate the same

29. Raja

BOOK VALUE

Book value per share is a measure often used by investors to determine the level of safety associated with a stock investment. The book value per share of a company is easy to calculate and helps the investor determine whether a stock is currently undervalued or overvalued.

Book value per share also lets helps the common shareholder understand what they might claim should the company dissolve. In other words, if the company were to go out of business, book value indicates how much would be left for shareholders after it settled all its outstanding obligations and sold off its assets.


Calculating Book Value Per Share

Book value per share, a component of fundamental analysis, is calculated by subtracting total liabilities from total assets. You then divide that total by the number of common shares outstanding.


NETWORTH OF A COMPANY

Small business opportunities are attractive at times. However, you must be careful to always look before you step, especially when dealing in financial matters. If you're interested in carrying out some background research before you put your money into an investment, you should take a look at the balance sheets of the companies that are catching your eye. Do not blind yourself to the total liabilities of these companies. In order to get a good idea of whether a company is performing solidly, you should perform a net worth calculation on it.

DETERMINING NETWORTH OF A COMPANY

1. Locate a company's balance sheet in Red Herring Prospectus (RHP). Balance sheets are not hard to find. There, you can find everything you will need to make a net worth calculation for a company. Total assets & total liabilities are listed neatly.

2. Identify the company's total assets. Reading balance sheets is simple business if you know what you're looking for. Basically, a balance sheet is divided into two parts: assets & liabilities. If you are trying to arrive at a net worth calculation for a business, you will first need to find the company's total assets on its balance sheet. Make sure that you locate the company's total assets, not its total current assets. These are two different things.

3. Identify the company's total liabilities. The second variable you'll need to turn your attention to in order to arrive at a net worth calculation for any company is its total liabilities. Just as with total assets, you will want to make sure to observe the company's total liabilities and ignore its total current liabilities. When gauging whether small business opportunities are viable investments, you will want to be firmly aware of the company's long-term debts as well as its current operating costs. Balance sheets will break down liabilities by subject, so you can get a clear idea of where the company's money is going.

4. Subtract the total liabilities of the company from its total assets. The final step you will need to follow in order to arrive at a company's net worth calculation is to reduce its total assets by taking into account its total liabilities.

CAUTION

a) Be aware of the difference between a company's Net Worth and its Tangible Net Worth. Net Worth is calculated by taking into consideration a company's LONG TERM assets & liabilities into consideration, while Tangible Net Worth is arrived at by examining only the CURRENT assets & liabilities of a company. The results of these two calculations can differ by hundreds, thousands or millions of Rupees.

b) While establishing a company's net worth may help you in being able to evaluate the company's history, you should also assess whether or not the company possesses growth potential. First of all, you should ask yourself if the company belongs to growth sector. Secondly, you must decide whether the company you are evaluating offers a product which is unique from its competitors. If so, perhaps this company will have staying power.

Raja,

Networth of company represents how much assets(plants,offices,machineries etc) company able to make uptill now since its inception(birth).It actually reflects if company is liquidated then that apporx amt can be realized by selling its all assets.So it actually represents true value of company.

Book Value per share represents networth of company associated with each share.(Book value per share = Total Networth of company / No. of outstanding shares )

When company go public(IPO) it means they want to expand their business & looking for equity investments.There is differnce in equity & debt.In case of debt, company take loan from institutions/banks to whom they will payback with interest even if company incurred losses but Equity investment means company want to do partnership with public for profit/loss Which mean company will dillute their holding & will issue shares to public.If company is making any new partner then they will obviously charge some premium over networth.So generally it has been seen that premium is about 3 * book value for this kind of captial intensive industry & about 6 times book value for service/IT company where main assets are people working there which has not be counted under networth.

If the price of JSW will be in range of about 200-220 then it will be of about 19-20 times of book value as its book value is about 11 Rs ( 1400 crores/136 crores share).


Here is what I think about JSW price range.

If price is below 30 Rs per share then it will be true investor delight.

if price is between 30 & 50 then it is good for company but not much left for investor now but can be kept for long term.

If price is above 50 then it completly represents Promoter Greed.No point of investing & blocking money for 3-4 years.

Thanks Jindal. But just out of curiosity can u tell me how did it come to 19 times book value

what do you means by book value of 11 rs

Raja,

Book Value = Networth / (Total Outstanding Shares)

Networth = Total Assets - Total Outstanding Liablites

If you see consolidated balance sheet you will see networth to be around 1400 crores.

Outstanding Shares mentioned in Mar09 balance sheet is about 55 crores but actually outstanding shares before issue is about 136 crores because of issuance of bonus share in ration of 3:2 after Mar 09 & before public issue.This is the same technique which was followed by Ibull power to confuse innocent investors.

Hence Book value of JSW energy before public issue is about 1400/136 =~ 11 Rs per share.

Ratan,
Can you please confirm from where you come to know that issue will be of about 6.4 crores shares.To me there does not seems to be any reason for this issue size & price As I already mentioned in my previous post as well that total equity outstanding before issue is about 136 crore shares & that too with book value of around 11 Rs So fresh issue of 6.4 crores does not make any sense as it will for only 5 % of total equity & price about 35 times the book value.

manoj,

Can you tell me how did u arrive at that 19 times book value and whats the book value calculated,and how did u arrive that company is to issue 14 crore shares..