Matrimony.com Limited IPO Message Board (Page 27)

Matrimony.com: Better to reject profile on valuation :-

Unpredictable earnings and aggressive pricing make the IPO of India''s largest and oldest online match-making company Matrimony.com a no match for value investors.

The Chennai-based company, which was making losses until FY16, has turned profitable only in the last few quarters. Despite such a short track record of profits, the IPO is valued at nearly 40 times the company''s trailing twelve months earnings and seven times revenues. This sounds way too expensive for a company with 12 per cent annualised revenue growth between FY13 and FY17 and negative net worth due to losses in the previous years.

This will be the second attempt for the company which let its earlier approval for an IPO lapse last December citing weak market conditions.

The steep valuation provide limited margin of safety to investors considering networth erosion and a short history of profits. Long term investors may give this IPO a miss.

GMP stated for this IPO also. I read in ET that GMP of 105 is going around the corner.

> No fancy in this IPO. 98 rs. discount is the only attraction. Financials are cooked in last year with all cherry picked data.Usually private companies offer nominal discount to trap innocent retailers.

> Negative networth for all 4.25 years since March ''14 to June ''17

> Company shows sudden profit in last year for the purpose of IPO.Company was trying to bring IPO since 2015 but all its proposals were rejected due to negative figures in balance sheet. Finally this time it succeeded in convincing SEBI by showing some positive figures with unusual growth.

> 5 years Revenue CAGR : 11.6 %
5 years Profit CAGR : ? ?
43 % ! !
Really ?
Certainly not.
Because there is no consistency.There is a long gap of 3 years .

> Company is diverting its business towards marriage related services like mandap service , DJ...

> In my opinion listing could be around 930-960 range . Maximum listing gain for retailers could be 700-800 per application.After that it can trade around 700-750 range within 3-4 months.It could be another just dial , the stock which used to trade at 1600 now trading around 400.At present just dial is trading at 22 P/E and matrimony is asking for 44-49 P/E ! Almost more than double !
Final conclusion is - Avoid but only risk taking traders can apply in RII category after seeing subscription data on last day and that too for listing gain purpose only otherwise leave it. Why to invest in weak fundamental company when many more IPOs are yet to come.

Thanks for ur prompt reply sir, i would also like to know... according to u how much listing gain will be possible for this issue?

great review, thanks!

As Mr. ShareView rightly said the only attraction in this issue is retail discount. By getting attracted to the discount offered, there is a every possibility of geeting fingures burned.

Profit for the quarter ended june 17 is around 17 cr. If we extrapolate this, we get profit of 68 cr on revenue of 3156 cr. Eps will be around 30.4 for year ending march 18. Only question is what multiple we are ready to give to this business which has good scope in our country. Seems fairly priced for me. Retail discount and lead manager(Axis Capital) gives a bit of safety net to it.

Retail investor share price to apply is 887/- per
Share 10% discount

Let''s wait and watch to see subscription figers in QIB & HNI category then decide to apply or not but i think due to a decent discount of 10% which is not seen normally so there may be some listing gain.

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http://www.moneycontrol.com/news/business/stocks-business/icici-lombard-general-insurance-ipo-to-open-on-september-15-icici-bank-shares-gain-2381159.html

http://economictimes.indiatimes.com/articleshow/60403866.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

..very high priced IPO leaving little on the table for investors ..it seems greed has prompted the promoters to encash the current euphoria in the stock market ..a must avoid to teach a lesson to the greedy promoters and merchant bankers

I just read about some discount to retail applicants. Was it announced from beginning or is it added now?

How much Retail portion is?
as it''s shown 3/5 year in loss

What are the main triggers for this IPO . Will it give long term gain or one should take listing gain?

Matrimony ritel me kitna % he koy btaye bhai

Positives:
1. Growing business
2. Evergreen market
3. Brand recall and well recognized

Negatives:
1. Not consistent in making profits.
2. Objects of the issue are not growth focussed (except spending on advertising)
3. Capital expenditure doesn''t translate to revenue

If you are a long term investor (apply moderately)
Listing gains (depends on subscription numbers on last day)
for short term Trader (avoid)


The objectives of the IPO don''t look
Objects of the Fresh Issue

1. Advertising and business promotion activities;
2. Purchase of land for construction of office premises in Chennai;
3. Repayment of overdraft facilities; and
4. General corporate purposes.

People you should not think like this if Face Value is 5 and price is 985, then if Face Value is 10 to price should be 985*2=~1970.

This is not a correct approch to think.
well there is SEBI Regulations for issue price and premium.

which said if your issue price is more than 500 rs. then face value should be less than rs. 10, i.e. may be rs. 5, 2, 1.

for a new person it may seems to be ulta pulta kya hai ye,
10 rs. ka share to issue price 500 se kam hoga, aur uss se kam ka face value hai to share ka daam 500 se jyada hoga.

par ye hi rule hai jawano....

& you are quoting wrong regulation no. Its 31 and not 26 of ICDR

No knowledge is fine
Half knowledge is dangerous

premium 232/242

In October 2013, Yahoo sold its 12 per cent stake in Indian online matchmaking site Bharat Matrimony(BM) for Rs 100 crores having bought it for less than half of that in 2006.
At that time market value of BM was valued at 833 Cr. Yahoo’s stake was snapped up by Bessemer, for Rs 50 crore, while Mayfield bought shares worth Rs 36 crore and Canaan Rs 14 crore.
Now, Bessemer selling all his 14,61,006 shares bought in October 2013 at Rs. 342/Share.
Total revenue of company increased 57% from 1888 cr. to 2929 cr. from March-13 to March-17 while Profit increased by more than 4 fold.
So, after discount of Rs. 98 per share for retail category price of Rs. 887 looks good for investment purpose.
I will apply for this IPO.

Margins will be high in this business and there is no competition. Wait till last day to see over all subscription figures.

Based on subscription... will take call on Day 3

Found some 2013 figures say something about close or far competition of these ''then'' front-running Jeevansathi/ BharatMatrimony/Shaadi.

http://www.business-standard.com/article/companies/booming-biz-of-online-marriages-111122200022_1.html

Matrimony premium 175/-

Even though financials are bad this may attract some fancy and can list at a good premium.
May be similar to Infibeam. I will apply it moderately.