AAA JAI IPO Review

Avoid

Debt is high.
Fully priced.
EPS of Rs.4.2, max priced at Rs.84, considering high P/E of 20
LM weak 1st performance.
Offering 2% QIB
FMCG SME cos- I avoid.

Avoid

Financials weak
High Debt - interest coverage weak
Window dressed profits LY
Rented Factory
Big Size issue
LM record is erratic

Avoid

Poor Fundamentals.
Promoters have disappointed investors in Magh Advtg.
DD sir rated Big Avoid.

Avoid

LM Fedex and MM Rikhav, dono naam hi kaafi hai.

Avoid

Financials are cooked for issue. Total borrowing of 3.41cr vanished in last FY?
Nothing impressive abt LM. Nothing great in business model. QIB <10%

Avoid

Extremely risky bet. Weak hearted better stay away.

Avoid

Nothing left for investors here. Rather Buy better performing from secondary market.

Avoid

Smart Investor should subscribe this IPO only after selling her/his application or SubjectToAllotment.

(A) Company formed in 2016. No business for 3 years FY16-17 TO 2018-19.
1st yr in business FY2019-20, sales of Rs.8.24 Cr.? Aisa kaunsa dhandha hai yaar?

(B) From incorporation till date, 4 directors have changed. Only Jyoti Choudhary is permanent. No stability, why?

(C) Post Issue Promoter holding will remain 27.12%>>> Who is chasing your money?

Avoid

1. Too pricey. Not worth even Rs.200.
2. They don't manufacture a single piece of watch or clock. With high overheads in physical retailing, rising product prices, poor discounts and falling margins- I hardly see physical watch retailing a profitable business.
3. The promoter group, Kamla Dials, has poor reputation in watch industry.

Apply

Fairly valued & consistent performer.