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Review By Dilip Davda on March 10, 2017
Jash Dealmark Ltd (JDL) is a leading import export solution provider. It started the business of trading of exim licences. July 2014 onwards the company also started to import various goods. From fiscal 2014-15, it has ventured in trading and supply of industrial and engineering plastic Components as per customer requirement. From financial year 2015-16, the company has started trading of various FMCG products within the country. Thus it has three business segments viz trading of exim licences, trading and import of industrial and engineering plastic Components and trading in FMCG products
To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 1350000 equity share of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 5.40 crore. Issue opens for subscription on 15.03.17 and will close on 17.03.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Gretex Corporate Services Pvt Ltd and Purva Sharegistry (India) Pvt Ltd is the registrar to the issue. After initial equity issue at par in 2012, it issued further equity at a price of Rs. 40 per share in Sept. 2016 and January 2017. It has also issued bonus shares in the ratio of 15 for 1 in September 16. Its current paid up equity capital of Rs.3.64 crore will stand enhanced to Rs. 4.99 crore post issue.
On performance front, the company has reported turnover/net profits of Rs. 12.70 cr. / Rs. 0.02 cr. (FY14), Rs. 17.08 cr. / Rs. 0.03 cr. (FY15) and Rs.108.15 cr./ Rs. 0.12 cr. (FY16). For the first nine months of the current fiscal, it has posted net profit of Rs.0.21 crore on a turnover of Rs. 257.79 cr. Thus last two fiscals turnover jump is surprising. If we annualize the latest earnings and attribute it to fully diluted equity post issue, then asking price is at a P/E of 71 making it a costly bet. Surprisingly, as per prospectus details, the company is comparing itself with major players like Baja Corp, Dabur, Emami, Godrej Consumers etc as its listed peers.
On merchant banker’s front, this is the 2nd mandate from its stable and earlier one gave petty return on the listing day.
Conclusion: This issue is highly priced one. Only risk savvy cash surplus investors may consider investment for long term.
Review By Dilip Davda on March 10, 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 Jash Dealmark Ltd offers an early investment opportunity in Jash Dealmark Ltd. A stock market investor can buy Jash Dealmark IPO shares by applying in IPO before Jash Dealmark Ltd shares get listed at the stock exchanges. An investor could invest in Jash Dealmark IPO for short term listing gain or a long term.
Read the Jash Dealmark IPO recommendations by the leading analyst and leading stock brokers.
Jash Dealmark IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Jash Dealmark IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Jash Dealmark IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Jash Dealmark IPO.
The Jash Dealmark IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Jash Dealmark IPO allotment status to check.
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