I am not an expert but I have reviewed 4 SME IPO's. My priority is 1. Vital, 2. Technopack 3. DAPS (Not interested personally). 4. Rite Zone (stay miles away). . Integrated Personnel Services yet to review.
29.3. phrao| Link| Bookmark|
October 27, 2022 8:44:44 PM
Top Contributor (400+ Posts, 500+ Likes)
priority is 1. DCX 2. Vital, 3. Technical
Hold balance money fir 3-7Nov22 Best 2 upcoming IPO'S .
This one is looking good ab-initio except the Employee Strength. Just 7 People apart from Management. Is it highly automated or some Management People assuming multiple roles(Company Secretary, Accounts, Taxation, HR, Marketing)? I am unable to find Capacity and Utilization also. Let's wait for RHP. Also, debts will go up, putting pressures initially due to Capex probably.
24.1. Arca| Link| Bookmark|
October 17, 2022 12:03:59 PM
IPO Guru (1000+ Posts, 500+ Likes)
Most of the times they use contract labours for doing unskilled works so that may be the reason for less employee strength. In Chennai majority of the unskilled is migrant contract labours.
Amit Surana: Yes, PE Calculation is correct based on first trimester of FY23 earnings annualized & FY22 but forgot to change the language where it should have read first 4M earning annualized or 1st Trimester Earning annualized. But I will read the RHP during weekend, do some Maths & take a call.
Thank you Focus SME dear, You have really sent very important as well as vital information of the company. You have really good knowledge and work out in this ipo. Thanks for sharing the information.
Ok! I am done with reading RHP. Here is my observations: . Asking valuation looks reasonable. Also, I doubt the margin reported is sustainable & could be resulting from inventory gain but unable make better analysis given production capacity & utilization missing. IPO proceeds going to add 4X capacity, which is good. Debt level reasonable but with added capacity will be addition of further debts. Monitor related parties transaction post listing though nothing of major concern. Management compensation is low. Power and Fuel cost is static which is surprising. . Overall; looks good & I WILL APPLY.