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Review By Dilip Davda on March 9, 2017
Chemcrux Enterprises Ltd (CEL) is an ISO 9001:2008 and ISO 14001:2004 certified company and is engaged in high pressure Oxidation, Chlorosulfonation, Nitration and Aceylation forb manufacturing of intermediates for bulk drugs, dyes and pigments. It also exports its products to Europe, Egypt and United States of America. It also caters to customers with tailor made products. CEL’s major selling products are Lassamide, various Chloro Benzoic acids and Nitro Benzoic acids.
To part finance its working capital and general corpus needs, the company is coming out with a maiden IPO of 1336000 equity share of Rs. 10 each at a fixed price of Rs.18 per share to mobilize Rs. 2.40 crore. Issue open s for subscription on 15.03.17 and will close on 20.03.17. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. From 1996 till 2013 it issued equity at par and then allotted bonus shares in the ratio of 1 for 1 in October 2016. Its current paid up equity capital of Rs. 3.60 crore will stand enhanced to Rs. 4.94 crore post issue.
On performance front, it has posted turnover/net profits of Rs. 18.12 cr. / Rs. 0.44 cr. (FY13), Rs. 15.65 cr. / Rs. 0.43 cr. (FY14), Rs. 19.66 cr. / Rs. 0.85 cr. (FY15) and Rs. 20.24 cr. / Rs. 1.62 cr. (FT16). For first half of the current fiscal, it has earned net profit of Rs. 1.10 crore on a turnover of Rs. 13.83 cr. If we annualize these earnings and attribute on fully diluted equity post IPO then asking price is at a P/E of around 4 plus and below 1 P/BV. Thus issue is priced very attractively. It has no listed peers to compare with.
On merchant banker’s front, this is the 37th mandate from its stable and earlier mandates have expressed mixed trends.
Conclusion: Issue is attractively priced, hence investors may consider investment for medium to long term.
Review By Dilip Davda on March 9, 2017
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 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: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Chemcrux Enterprises Ltd offers an early investment opportunity in Chemcrux Enterprises Ltd. A stock market investor can buy Chemcrux Enterprises IPO shares by applying in IPO before Chemcrux Enterprises Ltd shares get listed at the stock exchanges. An investor could invest in Chemcrux Enterprises IPO for short term listing gain or a long term.
Read the Chemcrux Enterprises IPO recommendations by the leading analyst and leading stock brokers.
Chemcrux Enterprises IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Chemcrux Enterprises IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Chemcrux Enterprises IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Chemcrux Enterprises IPO.
The Chemcrux Enterprises IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Chemcrux Enterprises IPO allotment status to check.
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RHP
For your valuable comment like these on all IPO. You are a true teacher for novoice and investors like us.
Thank You again.