Based on the consolidated earnings for the year ended March 2015, Equitas has diluted EPS of INR4.47. This values the company at 24.6 times its earnings at the upper end of the price band INR110 per share. This is less than the PE ratio of 26.8 times for SKS Microfinance which is closest to the business model of Equitas. SKS Microfinance trades at 6.6 times its book value while that of Equitas is 2.5 times. Another industry player, though not directly comparable, is Cholamandalam Investment and Finance Company which trades at a lower PE ratio of 21.7 but has a high price to book multiple of 4.1 times. Repco Home Finance – another listed peer – trades at a PE ratio of 25.3 and a PB ratio of 4.4. Clearly, Equitas offers decent discount despite strong fundamentals.
Septa Sir, I believe this one is good going. Looks a safe bet I will also bid HNI quota. If this one lists at premium than I think IPO s are waste of time.
This one from good promoters, future promising, Reasonable valuation , good past records
Hence this will setup a big momentum for coming IPOs eg. AGS , Ujjivan, L&T, Tycore all of these are are 1000 Cr. Plus IPOs so if this one fails under such situation it will be very difficult for them to raise money. Also will put a stand still on new fillings from Tata Sky Go Air Vodaphone Reliance Jio.
This is priced well on all comparison something is their for us to earn. Also with Modi Financial Incrustation this one has to a pace for upcoming IPO. A lot of hope from this.
212.1. Septa| Link| Bookmark|
April 1, 2016 1:27:16 AM
(4000+ Posts, 4600+ Likes)
it is big issue and big spenders will come new financial year