Jet Knitwears NSE SME IPO review (Avoid)

Review By Dilip Davda on Sep 26, 2016

Jet Knitwears Ltd (JKL) is engaged in the business of manufacturing of intimate garments for men, women and children such as vests, briefs, brassiere, panties, socks, T-shirts, Casual wears. The company markets its products under own brand names like “Lycot Australia, “Jet”, “Jet Eco”, “Fresh-long”, “Boski” and “Take Off”. It serves over 5000 retailers through its own marketing and logistics service in Northern India. Since 1993-94 till 2012-13 it received 16 various National awards/certificates/recognitions.

Jet Knitwears Ltd (JKL) is engaged in the business of manufacturing of intimate garments for men, women and children such as vests, briefs, brassiere, panties, socks, T-shirts, Casual wears. The company markets its products under own brand names like “Lycot Australia, “Jet”, “Jet Eco”, “Fresh-long”, “Boski” and “Take Off”. It serves over 5000 retailers through its own marketing and logistics service in Northern India. Since 1993-94 till 2012-13 it received 16 various National awards/certificates/recognitions.

To part finance its working capital requirements and raise general corpus funds, the company is coming out with a maiden IPO of 1083000 equity share of Rs. 10 each at a fixed price of Rs. 39 per share to mobilize Rs. 4.22 crore. Issue opens for subscription on 27.09.16 and will close on 29.09.16. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is solely managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Since inception till 2011 it issues equity at par and in March 2015 it issued 1331200 equity shares at Rs. 25 per share. Post issue its current paid up equity capital of Rs. 3.00 crore will stand enhanced to Rs. 4.08 crore. After allotment, shares will be listed on NSE SME Emerge platform.

On performance front, the company has posted near consistent top line with rising bottom lines for last four fiscals. Its turnover /net profits were Rs. 35.62 cr. / Rs. 0.17 cr. (FY13), Rs. 38.51 cr. / Rs. 0.20 cr. (FY14), Rs. 37.33 cr. / Rs. 0.30 cr. (FY15) and Rs. 38.57 cr. / Rs. 0.37 cr. (FY16). If we attribute last earnings on post issue equity then the asking price is at a P/E of around 31 plus and at a P/BV of 1.7. Thus the issue appears to be fully priced leaving nothing on table for new investors in near term.

On merchant banker’s front, this is the 20th Mandate and all past mandates has shown mixed trends.

Conclusion: Being fully priced IPO, Investors may give it a miss.


Conclusion / Investment Strategy

Being fully priced IPO, Investors may give it a miss.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Sep 26, 2016

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. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. 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 own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


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.

Email: dilip_davda@rediffmail.com

Jet Knitwears IPO FAQs

  1. 1. Why Jet Knitwears IPO?

    The initial public offer (IPO) of Jet Knitwears Limited offers an early investment opportunity in Jet Knitwears Limited. A stock market investor can buy Jet Knitwears IPO shares by applying in IPO before Jet Knitwears Limited shares get listed at the stock exchanges. An investor could invest in Jet Knitwears IPO for short term listing gain or a long term.

  2. 2. How is Jet Knitwears IPO?

    Read the Jet Knitwears IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Jet Knitwears IPO what should investors do?

    Jet Knitwears IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Jet Knitwears IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Jet Knitwears IPO good?

    Our recommendation for Jet Knitwears IPO is to avoid.

  5. 5. Is Jet Knitwears IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Jet Knitwears IPO.

  6. 6. When will Jet Knitwears IPO allotment status?

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

  7. 7. When will Jet Knitwears IPO list?

    The Jet Knitwears IPO will list on Friday, October 7, 2016, at NSE SME.

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