newbie at eps n p/e analysis, please comment on this pre issue P/E=0.98, eps=10 dilution = 60% (post issue avon will have only 40%shares) post issue eps = 10/1.6= 6.25 post issue P/E=1.6 which is lower against Avery India p/e=10
AVON WEIGH :- As per my logic if u apply for 1000 shares, u may get 400 shares,and on listing day it can go up to 16/-. that means on investment of 10000/- u can earn 2400/- in 30 days. In worst mkt conditions it may list at 11/-.Rs 400/-in 30 days.i e. 48 % in year.
hey NIVESH what do you mean by "operator driven counter" also do you mean to say this IPO will flip(list high n fall down) within 1-2 weeks of listing or are you talking about days?
Even i feel optimistic about this issue. I dont see much risk here except for the prevailing poor market conditions...
Go for it for full lot. If you guys r lucky enough to get the allotment then there is chances that it will shoot up like Burnpur Cement Rs 12 was issued price and shooted upto Rs 50 On the day of listing. It would be like Aishwarya Telecomz Issue Price Rs35 and listing day closing price was Rs 90.
So guys i am a guy who had a good experience in IPO market and according to me you can go for the Ipo as it would give a good profit
Points for positive are
1. Small issue as because they are not taking the premiun. 2. Profit is double from Last year in this six months. So profit for full year could be anywhere between 2.8 Crores To 3 Crores so if the company is coming out and wants 10 Crore so give them. 3. A sure operator driven counter as the issue is small and can be easily manipulated. The operator should be smart enough and has to be aggressive to manipulate the price from Rs 10 to Rs 40 and within 5 to 10 days it will again come dowm to anywhere between Rs 20 -Rs 22. 4. Operator driven means when it gets listed there are seller from Rs.13 to Rs.17 but no one except the operator is the buyer and gradually the price increases from Rs 17 to Rs 25 and the then all the retailers are the buyers and operators are the sellers. And then gradually it increases from Rs 25 to RS 40 and then finally the shares have been distributed well and then the counter will have low volumes and no operator. BUT FOR LISTING GAIN IT IS A GOOD COMPANY. 5. a good operator can take the price anywhere if a bit of calculation and timing goes on well with good market centiment.