This is the most overvalued IPO in recent times. Avoid. Profit of 416 cr, enterprise value of 8500 crore. PE of greater than 20, even TCS, Cognizant and Infosys don''t command that premium. Fair value is not more than 5000 crore, so expect a steady price of 500 on this share after listing.
L&T group is undoubtedly very clever and sharp. They leave nothing for retail investor while fixing the ipo price. Very little margin was there in L&T Finance and in recent example, retailers are loosing approximately Rs 50-55. Management were knowing that its very tough time for Indian IT industry. US election is there, and one bill for H-1B visas is pending for approval and impact of Braxit will affect the indian IT industry. Even the NASCOM has predicted 13% less jobs in IT sector. L&T management picked the right time as an opportunity for IPO and fooled all investors.
Now again the same story is going to repeat. They left nothing for retailers. Issue at 22-23 PE multiple left nothing for us. Possibility of gain is Rs20-30 but loosing is Rs70-80
Applying in this issue is very risky. If comes in discount at the time of listing, L&T group will loose faith of investors.
Hi, For same demat and PAN, we have option to apply multiple bids, so can I submit more than 1 bid of small quantity instead of one big bid? Is this possible without any cancellation or rejection?
One should b apply ...eps is more than 40 rs....we can easily give 25 ..so 1000 can b possible...LT won''t make mistake again...and again with it''s issue...leader in sagment...
People got scared after LTI listing will not apply..but my view is u can easily cover ur losses(if u sold LTI) in this...
This is initial view ..will give more update soon on LTT
Hello gamble, I just calculated EPS(TTM) and P/E of few of the IT companies: CMP EPS(TTM) P/E Wipro 480 35.57 13.49 HCL Tech 785 46.21 16.98 Infosys 1030 60.8 16.94 Persistent 620 37.93 16.34
I did not do calculations for other companies but the broader range seems to be this only 13-17 (not including TCS). As you said, if I assume the EPS to be 40, is it prudent to give it a P/E of 25??? They are already asking for >20 P/E.
Sorry tsk it is not l&t infotech it is l& t technology so pls compare it too its pears TATA ELXSI which is currently trading at 48 to 50 pe even if it is trading at 52 weeks low just few days before