@anarchist, Looks like this merchant bankers thinks RII''s are uneducated barbarians. Just look at PAT, it is cooked almost 19x in FY 17 against FY 16.(ullu banane ki bhi koi hud hoti hai) In modern terms it is called "FINANCIAL DRESSING" by merchant bankers & promoters to justify valuation. Everyone knows growth seen just before IPO is not sustainable in coming quaters. I think SEBI should draft some guidelines, as how to price an IPO.
In mainline IPOs these merchant bankers doesn''t leave a penny for investors. Recent example shalby, FSC, khadim, Mahindra logistics and many more.
Whereas In SME, these merchant bankers cook books to justify valuation. This trend is visible in almost every SME IPO barring very few. I think sebi must put some restriction on these merchant bankers, who are on rampage now.
Absolutely...this is exemplar of what I would like to call as the con job...The problem is the luck isn''t too kind when it comes to getting allotment in good issues..so one haplessly falls prey to such offers out of desperation... Sad state...
12.3. Huzefa| Link| Bookmark|
December 21, 2017 9:22:44 AM
Top Contributor (300+ Posts, 200+ Likes)
Radhika jeweltech is another sme peer. Here are FY 17 FINANCIALS Prev.Close(Rs.) 33.90 Today''s Open (Rs.) 35.75 Trade Value 5482400 Volume 142400 Dividend yield (%) 0.00 TTM EPS (Rs.) 3.92 P/E Ratio 9.66 Book Value (Rs.) 63.54 Face Value (Rs.) 10 MCap (Rs. in Mn) 894.44 Price/Earning (TTM) 9.40 Price/Sales (TTM) 0.57 Price/Book (MRQ) 0.60 PAT Margin (%) 2.19 ROCE (%) 11.40
Radhika was offered at around 99 pe during the ipo.. No Surprises it was a disaster at the box office and to add to it was introduced by an unheard LM...
Sudden jump in bottom line in FY 17 is really surprising. Dp abhusan is offered at 7 PE only. P. C. Jewel is quoting at 19 PE TTM. P. C. has much better NPM.
Pricing is reasonable. But, profit margins are extremely low.. Company is operating at margin of less than 1%, if we ignore latest years.. I am not very sure about the performance of such companies. Comments of learned members please.
Isnt Moksh promoter quality good? sector too is in fancy due to move from unorganized to organized,lower GST of 3%,Guiness recent ipos like Vertos,Sheetal Cool, have given good returns & on 4 Jan its one more IPO Jhandwalan closing & Moksh listing on 3rd Jan implying atleast 2 ckts??