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Cawasji Behramji Catering SME OFS Review (Apply)

Review By Dilip Davda on September 22, 2015

Cawasji Behramji Catering Services Ltd (CBCS) is currently engaged in the business of providing food catering & housekeeping services, both in India and abroad. In context of services offering in abroad / overseas clients, it provides catering & housekeeping services on vessels travelling to high seas. Besides this, the Company has also forayed into restaurant business wherein it provides multi-cuisine food to consumer through its restaurant. Thus the company currently involves in offshore catering and housekeeping services, onshore catering services and fine dine restaurants.

To get its shares listed on exchange, the company is coming out with a maiden offer for sale of 1330000 equity shares of Rs. 10 each at a fixed price of Rs. 14 per share to mobilize Rs. 1.86 crore. Issue opens for subscription on 29.09.15 and closes on 05.10.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Hem Securities Ltd is the lead manager and Sharex Dynamic (India) Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. CBCS issued equity shares at par since inception till 2009 and has also made two bonus issues in the ratio of 1.5 for 1 in June 2013 and 3 for 1 in April 2015. This being offer for sale, paid up equity remains at Rs. 5 crore post issue.

On performance front, the company has posted an average EPS of Rs. 3.18 for last three fiscals. For FY 15 it suffered a setback and has posted net profit of Rs. 0.82 crore on a turnover of Rs. 64.16 crore against net profit of Rs. 2.22 crore on a turnover of Rs. 72.90 crore. As the paid up equity has jumped three fold post bonus in April 2015, if we attribute its latest earnings on current equity then it has posted an EPS of Rs. 1.64 and thus asking price is at a P/E of 8 plus. On P/BV factor, as its NAV is around Rs. 21 asking price is at a 67% P/BV. Thus the offer price appears to be reasonable.

On merchant banker’s front, this is 20th SME issue from its stable and earlier mandates have given average rewards.

Conclusion / Investment Strategy

Investors having surplus funds may consider this offer for medium to long term rewards.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on September 22, 2015

Review Author

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. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.

About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

(Dilip Davda -SEBI registered Research Analyst-Mumbai,

Registration no. INH000003127 (Perpetual)

Email id: ).

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  4. 4. Is Cawasji Behramji Catering IPO good?

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  5. 5. Is Cawasji Behramji Catering IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Cawasji Behramji Catering IPO.

  6. 6. When will Cawasji Behramji Catering IPO allotment status?

    The Cawasji Behramji Catering IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Cawasji Behramji Catering IPO allotment status to check.

  7. 7. When will Cawasji Behramji Catering IPO list?

    The Cawasji Behramji Catering IPO will list on Monday, October 19, 2015, at BSE SME.