HPL Electric & Power Ltd IPO Message Board (Page 21)

chor company. taking advantage of market condition. definite listing at huge discount.

save ur capital and dont go for this highly priced issue.

fair value of stock is less than 100 rs.

HPL ≠ Havell’s
HPL Electric & Power is not to be confused with Qimat Rai Gupta’s Havells India Limited (NS:HVEL) which is already listed on Indian stock exchanges. HPL India Limited, Havells Electronics Private Limited, and Havell’s Private Limited hold equity stake in HPL Electric & Power and none of these companies are associated with Havells India Limited. In fact, the two groups have been involved in trademark litigation over the use of Havell’s name.
HPL Electric & Power is a manufacturer of electric equipment such as meters, switchgears, lighting equipment and wires & cables. The company has six manufacturing facilities in Haryana and Himachal Pradesh with in-house testing capabilities.
In the year ended March 2016, the company posted a 6.6% growth in consolidated revenues to INR1,121.2 crore (INR11.2 billion) while net profit after tax moved up 5.7% to INR36.6 crore (INR366.1 million). According to the draft prospectus, around 48% of HPL’s revenues were generated from metering solutions while switchgears accounted for 19% in FY2015. Another 27% came from lighting equipment in FY2015 while the rest was contributed by other businesses such as wires & cables and railway electrification. Going forward, HPL Electric sees the government’s smart cities and affordable housing projects are major opportunities.

Septa ji is right. as per post IPO equity given by ipoandmore for HPL its eps shall be 5.7 and its PE ratio will then be 37.5 which is even higher than Havell india even after removing exceptional profits . so even as prospects are good, pricing is certainly high.

Price band near 120 must be otherwise i avoid this ipo discount listing possibe at 200 ipo price

I am not going to subscribe to this ipo after reading the analysis of our respected septaji. In any case many applicants'' money will b blocked in IPL and GNA axles during this ipo. Let''s hope the price band is reduced drastically.

what is brokers view , whether to apply or not , please share brokers view

Debt runs in 1000 crs source RHP. Also look at the cash flow statement lot of windows dressing on page 316 onwards

As on June 30, 2016, we had aggregate outstanding loans of Rs 6,232.63 million on a standalone basis, comprising Rs 5,932.63 million of secured loans and Rs 300 million outstanding against unsecured commercial paper issued by our Company. Additionally, as on June 30, 2016, we had availed of non-fund based working capital facilities aggregating to Rs 3,915.48 million. Further, as on June 30, 2016, our Subsidiary had availed of non-fund based working facilities amounting to Rs 482.14 million and had an aggregate of Rs 348.34 million of secured fund based working capital loan outstanding. We may incur additional indebtedness in the future. Our indebtedness could have several important consequences, including but not limited to the following:

Thanks Septa ji

@ Septa. Sir any of the current SME IPO looking attractive? Pls advice

In my analysis of fair value based on growth which even at higher growth rate THEN WHAT HPL HAS ACHIEVED i got a fair value of of Rs 130 with MIS of 25% AVOID THIS ISSUE

Initial Cash Flow:      $36,63,00,000                   
                        
Years:      1-5      6-10            
Growth Rate:      12%      8%            
                        
Terminal Growth Rate:      5%            Discount Rate:      10%
                        
Shares Outstanding:      6,43,00,500             Margin of Safety:      25%
Debt Level:                        
                        
Year      Flows      Growth      Value      
1      41,02,56,000       12%      $37,29,60,000       
2      45,94,86,720       12%      $37,97,41,091       
3      51,00,30,259       11%      $38,31,93,283       
4      56,10,33,285       10%      $38,31,93,283       
5      61,71,36,614       10%      $38,31,93,283       
6      67,26,78,909       9%      $37,97,09,707       
7      73,32,20,011       9%      $37,62,57,801       
8      79,18,77,612       8%      $36,94,16,750       
9      85,52,27,820       8%      $36,27,00,082       
10      92,36,46,046       8%      $35,61,05,535       
                        
                        
Terminal Year      $96,98,28,348                   
                        
PV of Year 1-10 Cash Flows:                  $3,74,64,70,814       
                        
Terminal Value:                  $7,47,82,16,232       
                        
Total PV of Cash Flows:                  $11,22,46,87,046       
                        
Number of Shares:                  6,43,00,500       
                        
Intrinsic Value (IV):                  $174.57       
                        
Margin of Safety IV:                  $130.92       
                        
What Percentage of IV comes from                   67%      
the Terminal Value:                        

BTW outstanding share is 21465400

ok sir Thank you......
but in RHP various growth rates are given like growth in terms of revenue,pat,product demand etc...
so which growth rate should be taken ...since cashflows which we have taken are PAT hence growth rate should also be in terms of PAT.....
and growth in terms of PAT shown in RHP are disclosed below....
Particulars For the year ended March 31,
2016 2015 2014 2013 2012
Net Profit 259.27, 215.98, 132.65, 48.14, 169.34
Per cent growth 20.04%, 62.82%, 175.55%, (71.57)%, -

sir, we can see growth taken by me and suggested by you donot match with above growth rates...
please advise where i am doing mistake....

at Rs 202 it is day light robbery fair price 135
HPL more then 50% of its revenue comes from meters which is low return product with long payment which adversely hits the bottom line. Havells India sold out it meter manufacturing business given the competition and margins.

Comparing to havells india as its peers is completely wrong given havells india product line and size is incomparable with HPL.

Also debtor cycle is over 180 days which big financial cost plus competition from china is huge

IMO the fair value of HPL is more in range of 125-130 even at these price it above industry average PE of 22

at Rs 202 it is day light robbery I AM AVOIDING THIS IPO BETTER PLAYERS IN THE MARKET

WOULD NOT BE SURPRISED WE HAVE PRICE CHANGE

HPL compares itself with Havell India. A peer comparison at http://ipoandmore.com/2016/09/16/hpl-electric-power-ltd-ipo-comparison-peers/ shows that HPL is a much small than Havell.

If price band reduce to 130 then apply this time experts seems to be ri8

Yes Ca Sahib

Produst are established but price looks bit more

Experts what is your stand.

Apply or reject ? If Experts say AVOID THEN I WILL APPLY AND IF EXPERTS SAY APPLY THEN I AVOID THIS IPO

HA HA HA HA

Is its reliable to apply in the company as
The object of the issue are to:
1. Repayment/ prepayment of certain indebtedness;
2. Funding working capital requirements; and
3. General corporate purposes.

These indicates the company
1. Is having problem towards repayment of the debts taken.
2. Company has inadequate cash for its daily requirements.

never touch a company which has debt issue AVOID

@ modulator

I hope to whom so ever you are providing the power to remove or edit the comment.

Only if some Comment or Words that are said in order to make someone or something look or feel bad. Abusing language.

I hope comments which individual don''t like are not been removed. Please do take care. One can get angry by any comment that is posted which is not in the favor of him/her. It is because of individual nature of not able to ignore something. (Right to speak should not be harmed).

Dear Mr Sunil,

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Sunil Patel u r 100% right. Just for records I have not taken the offer by Chittogarh.com team of removing and edited anyone message the last thing i want gag on freedom of speech. But i have taken complain route to keep the forum clean and relevant.

Thanks Septa, for the valuable information.

Surprisingly, it seems Kostak has started.

Just confirmed not started yet.

Thanks for the info.Do post when any kostak price started

Any Kostak ?

Rs.900/950.

Sorry that was of icici
hpl kostak Rs. 300/350.

yes bank 1330 me 150qty he hols karu ya sold eagle eye

sell

GMP ????

Apply apply apply no risk not expensive