Canarys Automations Limited IPO (Canarys Automations IPO) Detail

Good morning CG members give me your suggestion about kontor, cannays, and plada.. Can I hold it for short term or book profit.... Plz giude me

Such a high volume.
One 2 lakh share bulk deal on sell side.
Who have buy all these share.
Certainly not retailers.
I think big game hoga.
Let's see...

Pakre rakho......

Does not look like a strong UC though,, looks like it will be difficult to sustain UC in upcoming sessions. Please share your views

Perhaps said too soon 🫢
Still, held well.

Extraordinary volumes today i.e. 35 lakh shares. Sold 1 lot, holding another one.

Sold 8000 @ 41.20 today
I m very happy

No big buying yet, only big selling.

Dear kapz,
Please🙏 reply whenever you free.
Thanks

Dear kapz,
Today market down 522 point and mostly stocks down, please🙏 see synopotics stand,
Any news, please🙏 share.
Thanku

Today brought 1 lot on UC in pre open.

Added 1 more lot on UC.

📌📍Bought some canarys lots in post session. Tomorrow reversal may be there.
Will post detailed analysis of the company tonight .
Not a buy/ sell recommendation.

​@Logij Kumar 
It is Post Market session from 03.40 PM till 04.00 PM.
For Zerodha users, it is enabled by default.
For other brokers, you have to check its support and enablement if any.

​@GJ 😀 Thanks for providing very important information 🙏

anyone can guess what happend to canarys share today i kept sale order in the morning and it is not executed ,

my order was at lower circuit 39.25

Added more at LC. Will reverse soon.. 🤞

​@Noorul Ji,
Now it's UC since 2-3 days. what is your suggested target for this? shall hold for few more days or book profit for allotted lot?
Please share. Thanks in advance.

@Noorul sir how long are you suggesting to hold canarys automation ? Please help

📌📌Canarys Automations solutions✅ has provided Business applications to over 1000+ customers. Besides India, the company has serviced customers from USA, UK, Canada, Germany, Singapore, Malaysia, Brunei, Australia, Srilanka and Indonesia 💫. These customers come from diverse industries.

▪️The company span across various industry sectors, including BFSI, Aviation, Energy, Education, logistics, Retail, Healthcare, Pharmaceutical, Manufacturing, Insurance 🔥, and more.

📌📌 ➡️ ➡️

▪️Incorporated in 1991, Canarys Automations Limited✅ provides IT solutions in the space of Digitalization, Modernization, Automation, and Intelligence.

📌The company has two business verticals:

➢ Technology solutions: This includes a multiple array of consulting solutions in Digitalization, Modernization, Cloudification, Automation, Transformation, and Intelligence.

Technology expertise includes DevOps Consulting (Azure, GitHub, Atlassian, GitLab, etc.), Cloud Consulting (Azure, AWS, GCP), Digital Enterprise Solutions using SAP, MS Dynamics 365, RPA, Digital Applications, and Mobility Solutions. (60% of Revenue✅)

➢ Water Resource Management Solution: This involves automation solutions to modernize irrigation water conservation and improve water use efficiency, Turnkey flood risk assessment and mitigation, cloud-based water utilization process automation for water sharing in rivers and canals, and SCADA gate control systems.(40% of Revenue✅).

▪️CAL is a Niche player💫 in IT automation solutions and Water Resource Management.

➢ The company posted PAT margins of 8.21 % (FY21), 8.85% (FY22), and 11.44% (FY23). This indicates the bright prospects ahead for this company.

📌GROWTH OF COMPANY:

1991:Incorporation
2002:Setup US office.
2004:Entered Partnership with multiple MNC's✅.
2010: Start of WRM services.
2018:DevOps partner of the year award from Microsoft.
2020:Secured national hydrology projects from multiple state government.✅
2023:Recognition as the "most innovative DevOps company, leaders in devops soltuions.

📌📌
▪️IPO price: Rs.31
▪️IPO size: Rs. 47.03CR (Anchor allocated 10Cr (lockin), so effective Size is 37Cr)
▪️CMP:Rs 39.25
▪️Market cap: 220CR
▪️P/E: 25✅
▪️EPS:Rs.1.52
▪️52 Wk High: 44.9
▪️52 Wk Low: 39.25
▪️RoNW: 31.64%
▪️Assets:Rs.63.77Cr
▪️Total Borrowing:14.15Cr (Reserves and Surplus:16.09Cr)

📌FINANCIALS:
▪️FY23 revenue is 75.47 CR as compared to 51.99 CR(FY22), 46%✅ growth yoy.
▪️FY23 PAT is 8.52 CR as compared to 4.55 CR(FY22), 88%✅ growth yoy.
▪️193%🔥 growth in revenue in last 2 years.
▪️305%🔥 growth in PAT in last 2 years.

(It has orders on hand worth Rs. 57.93 cr. as of August 31, 2023.✅)

➢FY24 Target-100Cr🔥
➢Fy25 Target-130Cr🔥 (as per the rhp)

📌Anchor Investors:(22% of IPO size allocated to them):-

➢Negen Undiscovered Value Fund allocated 12.92L shares
➢Finavenue Growth Fund allocated 9.68L shares
➢Saint Capital Fund allocated 6.48L shares
➢VPK Global Ventures Fund allocated 3.24L shares
( At price Rs.31✅)

📌IPO funds:
From the net proceeds of the IPO funds, it will utilize Rs. 11.00 cr. for solution development for digital transformation and water resources management solutions, Rs. 8.94 cr. for upgrading existing facility and creation of a new delivery center including related infrastructure✅, Rs. 15.00 cr. for working capital and the rest for general corporate purposes.

📌PEERS:
As per the offer documents, the company has shown All T Technologies, and Happiest Minds as their listed peers. They are trading at a P/E of 30.56 and 62.74✅ (as of September 25, 2023). However, they are not comparable on an apple-to-apple basis.

📌CLIENTS:
SIEMENS, ABB, PHILIPS, MICROSOFT, Price water house Coopers International Limited🔥.

📌SECTOR GROWTH:
▪️In FY2023, India’s technology industry revenue including hardware is estimated to cross $245 Bn(8.4% y-o-y growth), an addition of $19 Bn over last year. Exports at $194 Bn, are expected to grow at 9.4% in reported currency terms and 11.4% in constant currency terms. Domestic technology sector is expected to reach $51 Bn, growing at 4.9% y-o-y✅.

▪️IT services is expected to grow to 8.3% in FY 2023 compared to last year. The key drivers of growth include Application Modernization, Cloud Migration, Platformization, and Cybersecurity.

▪️ The Government is also playing a key role as an enabler of technology by building public platforms, digital public infrastructure and other projects, making the 'Digital India' initiative a reality.

▪️Central Water Commission✅ has taken up a new initiative “Support for Irrigation Modernization Program (SIMP)” with technical assistance from the Asian Development Bank (ADB) to modernize Major / Medium Irrigation (MMI) projects in the country.

▪️The Jal Jeevan Mission✅ - Urban launched on 2nd February 2021 was rolled-out to provide a comprehensive and holistic approach to achieve a water-resilient future for India and tackle water risks which are more intense and frequently occurring. ✅

📌STRENGTH:
➢High Quality Standards✅ (complying with Hydrology, Meteorology and IT consulting space)
➢Sustainability✅ (provides future proof solution)
➢Skilled and Experienced Senior Leadership.
➢Value Creation Approach (Enhancing operational efficiency)

📌FUTURE PLAN:
▪️International Expansion🔥 (currently 51% international Revenue).

▪️Market specific technology offerings (category leadership in 3-4 Niche technology soltuions).

▪️Expansion of Water Resource Management Solutions business ( Jal Shakti Ministry of the Government of India and Central Water Commission initiatives are leading to a significant investment in Water Resource Management and Automation projects in the country).

📌Disclosure: Not a buy recommendation. only for study and education purpose. Please consult your financial advisor before investing.

​@SJogi Great analysis, covering all aspects. It assures about strong fundamentals of this company.
I feel instead of applying in weak IPOs, it is better to buy and hold it for good returns.
Jab @Noorul Sir aur @MRavichandran Sir ka ho saath to Darr ki kya hai baat 👍🙏

​@ipo share 
@MRavichandran Ravi sir started doing this very early, learning from him🙏.

Hello CG members friends, off topic for KONTOR SPACE,... Mere pas kontor ka 1 lot alloted he kya use me6 months ke liye hold karna chahiye ya nahi,.. Apni rai dijyega 🙏

Good volume today. Hopefully LC will break tomorrow, as expected by our respected @Noorul Sir🙏

Why isnt there much interest in this ipo after listing? Company fundamentals looks good. Does anyone know? Please share your views

I got the alottment and holding it for now
LC due to high listing initially

And people may not buy now until it stablises due to fear of operator game

This is mainly done to scare retail investors and buy chunk of shares at a relatively decent price(probably less than issue price), all this to drive out weak hands

Same thing happened in Magson, now stable between 80-90 and will remain so until it's results I think

Do rate the helpful post

Yes, fundamentally, it looks fine with good growth in revenue and PAT. It listed above expectations and number of shares are on higher side (1.5 cr). It may take some more time to absorb selling pressure / profit booking (still 20% above IPO price). Seems to be a good company to hold. @Noorul Sir is already accumulating.

Bought 4 lots today at LC..
After Detailed analysis good company with good fortune..
Technology with Water Resources..
Govt^supported area..
Dark horse one of the company in it's kind

Very big issue but few shares traded. Not looking good.

*11-Oct-2023 CANARYS Canarys Automations Ltd bulk deals.

ABSOLUTE RETURNS SCHEME sold 15,20,000 shares @ Rs. 42.58

ALACRITY SECURITIES LTD sold 3,80,000 shares @ Rs.43.45

MM sold exactly half of its allotted shares on listing. Still half quantity remains to be off loaded. Out of 1.5 cr shares, around 45 lakh shares were traded. Sell orders for nearly 14 lakh shares were there in LC.

Can any expert comment who is "Absolute Returns Scheme"? Neither retail not HNI can have such large number of shares. Anchor investors have lock-in. Kaun dump kar gaya..op? ;-)

Inflated sales/profits. Be careful.

Receivables of Rs 8.64 cr are pending over one year (1 to 2 years).

May have to be written off.

Check RHP page 246

Check receivables over one year (1 to 2 years).

ALL E TECH is almost double today.

Let big buyer to accumulate the stock. It will give decent return after March'24 result. Just hold tight.

All horses are running, this Dunkey will FLY.

Bought 1 Lot here.

​@lokes  What is your view here ? Have u been allotted or Bought after listing ?

Good roi in retail
Real dark 🐴
Miss the bus

​@KAPPO Bhai, aapne aaply Kiya tha ya ab market se lenge? What is the right price to buy?

No buy / sell recommendation
Apply nahi kiya

I am new to market and am applying to all IPOs. Are these SME IPOs to be sold immediately in pre-open on listing day? I was allotted one lot of 'Crop Life Science' & didn't sell in pre-open thinking it's a decent company, but the price just started falling immediately. Finally I had to sell it & booked a loss of 12,000.
Again I got allotted this 'Canarys Automations'. Again I didn't sell in pre-open thinking it's a good company. Again lower circuit immediately. Couldn't sell once the lower circuit hit.
Experts please advise on 'Canarys' now. Is it advisable to hold for long term for the target of 50 Rs in a few months? Or is this also going to just hit LC after LC and just fall back to the IPO price of 31 Rs? What should be done here by allottees like me who were not able to sell on listing day?

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