Pulz Electronics NSE SME IPO review (Subscribe)

Review By Dilip Davda on Nov 5, 2017

Pulz Electronics Ltd. (Pulz) is in the business of developing and manufacturing audio systems and solutions that capitalize on the emergence of new co-axial technology and line array based speaker systems for the cinema, pro-audio, studio and home audio industries since last 35 years. Pulz manufacturers an array of world class products specifically designed to cater to object based and channel based futuristic immersive audio formats like Dolby Atmos, DTSX or Auro 3D. With thousands of cinema and audio installations in some of the leading chains, Pulz is one of the industry leaders with innovative products and advanced engineering skills.

The Pulz manufacturing base is built over 40,000 sq ft of state of the art manufacturing facilities in the outskirts of Mumbai, India. The key components are manufactured in Germany, Italy and Spain. A 100 plus dedicated team of highly skilled professionals work relentlessly towards innovation, product development, precision assembly, and stringent quality control. The Pulz facility is also designed to build customized products for special venue requirements, giving the company a unique ability to provide the perfect solution for technically challenging projects and venues. Pulz audio systems are offered in three ranges Platinum, Premium and Classic. Platinum assures the highest level of technology, sound quality and refinement, whereas the Classic offers an optimum solution without any compromise in performance and quality.

To part finance its acquisitions and other strategic initiatives plans, general corpus fund needs etc., Pulz is coming out with a maiden IPO of 726000 equity shares of Rs. 10 each via book-building route with a price band of Rs. 51-54 to mobilize Rs.3.7 to Rs. 3.92 crore (based on lower and upper price bands). Issue opens for subscription on 14.11.17 and will close on 16.11.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment shares will be listed on NSE SME Emerge. Issue is solely lead managed by Sarthi Capital Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Issue constitutes 26.62% of the total post issue paid up capital of the company. Pulz has issued entire equity at par and has also issued bonus shares in the ratio of 1 for 1 in March 2011 and 3 for 1 in March 2017. Post issue, company’s current paid up equity capital of Rs. 2.00 crore. will stand enhanced to Rs. 2.73 crore.

On performance front, Pulz has reported turnover/net profits of Rs. 9.26 cr. / Rs. 0.10 cr. (FY14), Rs. 11.91 cr. / Rs. 0.01 cr. (FY15), Rs. 13.07 cr. / Rs. 0.30 cr. (FY16) and Rs. 13.85 cr. / Rs. 1.34 cr. (FY17). For Q1 of current fiscal, it has posted net profit of Rs. 0.40 crore on a turnover of Rs. 3.86 crore. Sudden jump in bottom lines for FY17 is surprising even when top line remained at the same level that of FY16. It has reported average EPS of Rs. 3.86 and average RoNW of 21.60% for last three fiscals (on a weighted average basis on paid up equity capital base of Rs. 2.00 crore) . Issue is priced at a P/BV of 2.55 (based on valuations as on 30.06.17). However, believing company’s performance if we annualize latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 9.22 which augurs well. It has no listed peers to compare with.

On merchant banker’s front, this is the 36th mandate (including 1 main board IPO of Salasar) from its stable so far. Out of last 10 listings, 2 IPOs opened at discount, one at par and the balance 7 with a premium ranging from 3% to 131% premium on offer price on the day of listing. 131% rewards were from its main line IPO.

Conclusion: Issue is priced justifiably. Investors may consider investment for medium to long term. (Subscribe).


Conclusion / Investment Strategy

Issue is priced justifiably. Investors may consider investment for medium to long term. (Subscribe).

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Nov 5, 2017

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

Pulz Electronics IPO FAQs

  1. 1. Why Pulz Electronics IPO?

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

  2. 2. How is Pulz Electronics IPO?

    Read the Pulz Electronics IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Pulz Electronics IPO what should investors do?

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

  4. 4. Is Pulz Electronics IPO good?

    Our recommendation for Pulz Electronics IPO is to subscribe.

  5. 5. Is Pulz Electronics IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Pulz Electronics IPO.

  6. 6. When will Pulz Electronics IPO allotment status?

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

  7. 7. When will Pulz Electronics IPO list?

    The Pulz Electronics IPO will list on Friday, November 24, 2017, at NSE SME.

2 Comments

an Investor
2. an Investor  Dec 4, 2017 12:04 I Like It. | Report Abuse Reply 0
Dilip Sir,
I have 1 lot and don''t know what to do? I should have sold on listing day with good gain. Now it is almost at the offer rate. Should I hold or exit? Can you please suggest on this?
siwach
1. siwach  Nov 11, 2017 09:04 I Like It. | Report Abuse Reply 0
good ipo for investment & listing gain
dilip sir analysis always right








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