C Mahendra Exports Ltd IPO Message Board (Page 7)

VIVEK JAIN

SEND SMC THIS VALN. REPORT ARE THEY FOOL.

Gem ipo finder Dec 26, 2010 8:29:49 AM IST
C Mahendra Exports Ltd
I GOT THE FINANCIALS, HERE IS A QUICK LOOK

FY'10 SALES = 1865 CRORES
FY' 10 PAT = 6 CRORES

THERE WAS AN EXTRAORDINARY ITEM OF FOREX LOSS OF 50 CRORES.

3 MONTHS ENDED FY'11 SALES 677.5 CRORES
3 MONTHS ENDED FY'11 PAT 40.33 CRORES

IF WE EXTRAPOLATE THE FINANCIALS OF FIRST QUARTER TO GET THE FULL FY'11 PICTURE, MY ESTIMATE IS

FY'11 SALES = 2100 CRORES ( CO MAINTAINING 20% GROWTH )
FY 11 PAT = 90 CRORES ( CO OPERATES ON 4% PAT MARGIN )
FY '11 EPS = RS. 15 ( POST IPO EQUITY BASE 6 CRORES SHARES )

LOOK AT THIS IPO ONLY IF PRICE BAND COMES CLOSURE TO RS.90/SH OR LESS.

THERE ARE MANY DEMERITS OF JEWELLERY BUSINESS MOST DANGAEROUS IS "SALES WITHOUT BILL" THAT IS NOT ACCOUNTED FOR IN THE BOOKS AND U WILL NEVER GET THE CORRECT STATUS OF THE BUSINESS.

Valuation:

Considering the P/E valuation, the stock is priced at pre issue P/E of 2.65x and 3.07x on the lower and upper end of its price band respectively, of its annualised FY11 earnings of Rs 35.85.Looking at the post issue valuation, the stock is priced at P/E of 3.53x on the lower end and 4.09x on the upper end of the price band of its annualised FY11 earnings of Rs 26.49.At price `110, the stock is priced at P/B ratio of 1.14x on its pre issue book value of Rs 96.64. On the post issue book value of Rs 100, the P/B ratio will be 1.10x.

Outlook:

Owing to the presence in the cut and polished diamond business over three decades, the company is decently positioned in the GJ industry. Diversification in the retail business would help in improving the operating margins of the company. However, working capital intensive nature of the industry and long conversion cycle could limit its ability to generate steady free cash flows. Looking on the valuation part, post issue, the P/E ratio of 4.09x and P/B of 1.10x the IPO is reasonable.

TAKEN FROM SMC GLOBAL

Dear Gem,
Earlier message was for SPY.Will not stop my cheques. Not going for C Mahindra.

Friends,

HINDUSTAN COPPER down 8%, very volatile and seems on downtrend on news of FPO pricing. Unfortunately its not available in F&O segment.

This increase in retail limit has totally destroyed the IPO market.

In good quality ipos one gets nil or poor allotments n heavy allotments in poor quality ones .

I feel guilty if some people ask my opinion about some shares equating me with Sreedhar.
Sreedhar is an expert.
So there is some meaning in asking him.
I am a novice is share market.
I have already informed this forum many times I am not an expert.

@Natarajan / Sreedhar
Need your view on investing in Bharti Airtel. Speculation that it will reach 400 by end of Jan????

sameerjaipur,

its clear avoid.........

its worst than SPY....

20% CUT GARANTED

@140,Pradeep Kuwait

Are you talking about Coal India ? Please confirm.

Dear Gem,
Will go for it.Aage RAM JAANE.

@ 132 Gem
I shall extent my full support to fight against this increased limit of 2 lacs.
I think all retail ipo investers must unite and foam an assossiation. Those who are living in Mumbai & Delhi can contribute more on it.
To my knowledge till today Sebi has not released the data regarding the email discussion that howmay %age supported and opposed it. We must use the RTI route to obtain it.
Let us all unite and fight against it.

Belated merry X'mas and Happy New Year to all boarders.
I am back in India.

This Charcoal is still not in F&O very big game played by FII and the govt. In the next three months this share will be tranfered to Retail and fundamentally this stock will slowly drift towards 240~250 Rs. This year EPS will be not more than 14 lesser than last years EPS. This comodity stock will be derated and slowly trade at 10~15 PE in the future. Also minning ploicy 26% profit share will affect this stock. So retail investors and traders be careful with this stock . Traders if they get stuck in this stock will have to be long term investors and this stock will drift down slowly. 1st Support is issue price if furthur derating happens then it can test 200 Levels also. All this share unloading will happen with good news like MSCI index inclusion, F&O Inclusion, Index Inclusion etc etc . Retail investors and traders think its a good news flashing on the screen, But its a good news for FIIS to unload their stock to poor retail investors. So be careful any Its your money Take my advice or live it. I have sold all my shares which was allowted in IPO ( 1000 shares ). Q2 2011 Results of this charcoal is not good and Q3 and Q4 will also more or less same. so Derating of this stock will give a first target of testing issue price 245~250

Dear Sreedhar,
Have you shorted Jan futures or Feb futures? SAIL FPO may be announced and may also close by Jan expiry but I don't think shares will come to hand as there is no time left for that.
There is news floating that steel prices may go up in Jan 2011. Won't it be better to wait for some more time and do it?

Tata steel fpo in jan

Dear mr.Sreedhar,

I don't embarras you friend your research is good it is for the people to take decision at their own risk. I will be following you on this board.

SAMEERJAIPUR

ITS YOUUUUUUUUU WHO WILL DECIDE SINCE U ARE LOOKING AT GROUND GMP
I DONT KNOW THE REAL GMP
IF U FEEL RISKED GO AHEAD AND STOP
OR LEAVE IT AND EXIT ON LISTING AT ANY PROFIT.

ANIL G


WAIT FOR GOOD CORRECTION FROM HERE TO BUY M AND M FINANCIAL

Dear Gem,
Applied 2 full application by cheque in SKY.GMP is decreasing constantly. Should I do stop payment?

Hello Gem IPO and Shreedhar,

Kindly share your views on
Mahindra & Mahindra Financial Services at current price for medium to long term...

Thanks in Advance :)