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Review By Dilip Davda on October 24, 2015
Perfect Infraengineers Ltd (PIL) is engaged in the business of Mechanical, electrical and plumbing (MEP) turnkey project contracting & engineering. It is also engaged in the manufacture of Heating, Ventilation, and Air Conditioning (HVAC) components and equipment including control panels. It has successfully completed prestigious HVAC /MEP projects all over India and abroad.
The MEP activities provided by Perfect Infraengineers include design, engineering, supply, installation and commissioning of HVAC, plumbing, firefighting and electrical systems to a wide range of industrial, commercial, hospital and tower projects. Its solution includes turnkey electro mechanical works starting from the engineering design, value engineering, construction management, erection, testing, commissioning, operation and maintenance.
To meet investment in subsidiary and long term working finance needs, the company is coming out with a maiden IPO of 2508000 equity shares of Rs. 10 each at a fixed price of Rs. 23 per share to mobilize Rs. 5.77 crore. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue opens for subscription on 30.10.15 and will close on 04.11.15. Post allotment, shares will be listed on NSE Emerge platform. This issue is graded as CRISIL SME 4/5 indicating that the fundamentals of the Company are superior compared to other SMEs in India. Keynote Corporate Services Ltd and SIDBI are the lead managers to the issue and Karvy Computershare Pvt Ltd is the registrar.
On performance front, the company has posted an average EPS of Rs. 2.16 for last three fiscals. Despite continued growth in top line from FY 2011 to 2015, it suffered a severe setback in bottom line for FY 2014. For first month of current fiscal (Aril 2015) it has earned net profit of Rs. 0.08 crore on a turnover of Rs. 1.39 crore. If we attribute this on full fiscal and fully diluted equity post IPO, the asking price is at a P/E of 18 plus. However, based on fiscal 2014 earnings, same will stand at a P/E of 11 plus. Having issued equity at par till March 2012, the company issued shares in-between at Rs. 40 in November 2002, at Rs. 20 and Rs. 21 in 2010 and 2011 and also in the range of Rs. 12.85 to Rs. 25 during March 2013 –September 2015. It has also issued bonus shares in the ratio of 2 for 1 (June 2002), 1 for 3 (February 2005), 3 for 4 (January 2006), 1 for 2 (December 2009), 1 for 1 (January 2011), 2 for 3 (January 2013) and 1 for 3 (December 2014). Its current paid up equity capital of Rs. 5.20 crore will stand enhanced to Rs. 7.71 crore post IPO. As claimed by the company in prospectus, there is no listed peer to compare with and is having a credit of first mover in such category. According to PIL, this sector is likely to grow at a CAGR of 13 till 2020 based on market reports.
Although pricing of the issue appears greedy, risk savvy investors can plan long term investment as most of SME IPOs have given some rewards post listings in the process.
Review By Dilip Davda on October 24, 2015
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 Perfect Infraengineers Ltd offers an early investment opportunity in Perfect Infraengineers Ltd. A stock market investor can buy Perfect Infraengineers IPO shares by applying in IPO before Perfect Infraengineers Ltd shares get listed at the stock exchanges. An investor could invest in Perfect Infraengineers IPO for short term listing gain or a long term.
Read the Perfect Infraengineers IPO recommendations by the leading analyst and leading stock brokers.
Perfect Infraengineers IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Perfect Infraengineers IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Perfect Infraengineers IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Perfect Infraengineers IPO.
The Perfect Infraengineers IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Perfect Infraengineers IPO allotment status to check.
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