Jiya Eco Products IPO Review & Recommendations

Jiya Eco Products IPO Review by Dilip Davda (May apply)

[Dilip Davda]  

If we attribute the FY 2015 earning on annualized basis on fully diluted equity post IPO then the asking price is at a P/E of 5 plus that makes it a justified price IPO.

On performance front, the company has posted turnover/net profit of Rs. 1.65/Rs. 0.07 crore (FY 2013) and Rs. 14.02/Rs. 1.05 crore (FY 2014). For first nine months ended 31.12.14 it has earned net profit of Rs. 2.40 crore on a turnover of Rs. 20.46 crore.

This is 9th IPO from this merchant banker that has positive return record for its past seven listed mandates and eighth IPO of Ambition that is closing on 30.06.15.

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.