Tijaria Polypipes Ltd IPO Review (Avoid)

Review By Dilip Davda on Sep 24, 2011

Tijaria Polypipes Ltd.: The Company promoted by Tijaria group is engaged in the manufacturing of high grade HDPE, KDPE, LDPE, LLDPE, uPVC and PP-R pipes and selling under the brand name of Tijaria and Vikas. It also manufactures sprinklers. Now the company is expanding its capacity and wants to diversify into other plastic products and generate corpus fund. To part finance this, the company is coming out with an IPO of 10000000 equity share of Rs. 10 each at a fixed price of Rs. 60 per share. The issue opens for subscription on 27.09.11 and closes on 29.09.11. Hem Securities Ltd. is the sole BRLM and Sharex Dynamic (India) Pvt. Ltd. is acting as registrar to the issue.

ICRA has assigned IPO Grade 2 to this issue indicating at Below Average Fundamentals of the company. Shares will be listed on BSE and NSE. Minimum application is to be made for 100 shares and in multiples thereof. As far as BRLM is concerned, it came out with one issue in the past that was able to give positive return on the debut day.

On financial front of the company, for 2010-11 it posted net profit of Rs. 6.90 crore on a turnover of Rs. 118.60 crore that gives EPS of Rs. 2.80 on the post IPO equity translating in P/E of 21 plus against its peer that quotes around 6 P/E and more that 2 P/BV.


Conclusion / Investment Strategy

Avoid. For 2010-11 it posted net profit of Rs. 6.90 crore on a turnover of Rs. 118.60 crore that gives EPS of Rs. 2.80 on the post IPO equity translating in P/E of 21 plus against its peer that quotes around 6 P/E and more that 2 P/BV.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Sep 24, 2011

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. Any reader taking decisions based on any information published here does so entirely at its own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

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

Tijaria Polypipes IPO FAQs

  1. 1. Why Tijaria Polypipes IPO?

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

  2. 2. How is Tijaria Polypipes IPO?

    Read the Tijaria Polypipes IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Tijaria Polypipes IPO what should investors do?

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

  4. 4. Is Tijaria Polypipes IPO good?

    Our recommendation for Tijaria Polypipes IPO is to avoid.

  5. 5. Is Tijaria Polypipes IPO worth Investing?

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

  6. 6. When will Tijaria Polypipes IPO allotment status?

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

  7. 7. When will Tijaria Polypipes IPO list?

    The Tijaria Polypipes IPO will list on Friday, October 14, 2011, at BSE, NSE.
More Tijaria Polypipes IPO Views / Analysis / Recommendations ...








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