If this issue comes at 135 gives this depositary MC of 1400 give it a PE of 21 for 2017 if we consider same growth rate in a stable and growth prospects in equity culture i see a PE of 18 financial year 2018. so reasonably priced IMO fair price is around Rs125 so with 25% will list around 150-160 range. BTW i would prefer PB value then PE . which is around 3 which is fine.
IMO THIS ISSUE WILL GIVE ATLEAST 10% RETURN SINCE THE ISSUE IS SMALL BEST OPTION IS TO SELL IN GREY. I AM APPLYING FOR THIS IPO ONLY FOR LISTING GAIN
IMO THE ISSUE SHOULD HAVE COME AT 115 LOOKS LIKE MANAGMENT AFTER THE SUCCESS OF BSE IPO PROMOTERS ARE GETTING GREEDY AT ASKING 135
Initial Cash Flow: $65,00,00,000
Years: 1-5 6-10
Growth Rate: 20% 15%
Terminal Growth Rate: 5% Discount Rate: 10%
Shares Outstanding: 10,45,00,000 Margin of Safety: 25%
Debt Level:
Year Flows Growth Value
1 71,50,00,000 10% $65,00,00,000
2 77,93,50,000 9% $64,40,90,909
3 84,16,98,000 8% $63,23,80,165
4 90,90,33,840 8% $62,08,82,344
5 99,99,37,224 10% $62,08,82,344
6 1,07,99,32,202 8% $60,95,93,574
7 1,16,63,26,778 8% $59,85,10,055
8 1,24,79,69,653 7% $58,21,87,053
9 1,33,53,27,528 7% $56,63,09,224
10 1,41,54,47,180 6% $54,57,16,162
Terminal Year $1,48,62,19,539
PV of Year 1-10 Cash Flows: $6,07,05,51,831
Terminal Value: $11,46,00,39,397
Total PV of Cash Flows: $17,53,05,91,228
Number of Shares: 10,45,00,000
Intrinsic Value (IV): $167.76
Margin of Safety IV: $125.82
What Percentage of IV comes from 65%
the Terminal Value: