Omkar Speciality Chemicals Ltd IPO Message Board (Page 23)

Ajay Indian,
JP results are expected to be very good.But I will be safe than sorry in this.I will buy its future only on 27 closing

268-CKShah.

I am not agree with you.
1. Pricing to Promoters is never comparable with the pricing to public. Promoters are those persons who worked hard to bring the co into existence. One person who is giving some money under IPO should never expect that he should be treated equal with promoters.
2.Competition will remain for every sector and every industry. there is no business nowhere in world in which there is no competition.
3. Cash flow is negative because of financing adn investment activities not from operating activities
4. Not obtaining license for the proposed factory- is not a great thing.
5. 58% to total business is from top 10 customers- these are all silly things and if some customer will go back, co will trap some new customer. this is not a surprise

Similarly for the location of the factory etc.

i am in favour of this IPO because of the fundamental of the industry as well as the company. Most of the IPO proceeds will be utilised for the productive purpose. Cumulative PAT been increase @ 69% over a period of 4 yrs (from 2005-06 to 2009-10).

This is ben both for listing day as well as on long term

The average price of promoters each share is Rs. 00.00, the B.VC. Is Rs. 13.81 & offer price is Rs. 95/98

Rating agency CARE has awarded 3/5 rating; Co. may have to face cut

Throat competition from domestic as well as Chinese market

The cash flow of the company recorded negative for last so many years.

The company is not issued the license from competent authority for its proposed factory

The PE ratio is comparatively high based on FY 2010 beside its P/BV ratio of

7.10 is also higher, RONW of the company is declining each year



- The average price of its main promoter Mr. Omkar Harlekar is Rs. 00.00 whereas the average price of another promoter Mr. Pravin Harlekar is Rs. 2.75. The company has issued bonus share in ratio of 1:43 to its promoters on June, 24, 2009 means before it filed its DRHP with SEBI. The book value of the share is Rs. 13.81 and its offer price is Rs. 95/98

- The 58 % of its total business gets through by its top ten clients which may prove risky for the company.

- The company on February 17, 2009 has applied for license to set up two factories but it has not received any license NOC besides it has not placed any order for any machinery creating dubious motive.

- The cash flow of the company was recorded negative during FY 2007, 2008, 2009 and first six months ended on September 30, 2010.

- All the production units of the company are confined to Badalapur and Thane of Maharashtra which may also create some risk for the company.

- The company may have to face cut throat competition from domestic as well as Chinese market

- The 50 % of its total raw material is based on import hence any fluctuation of foreign exchange may create negative impact on its profitability.

Remark: - The rating agency CARE has awarded 3/5 rating to this IPO indicating average fundamentals compared to other listed companies. The performance of the company for the last five years was recorded excellent and its sales and profit have also increased with 17 % and 21 %, 30 % and 64 % during FY 2008-09 and FY 2009-10 respectively. The company has posted the net profit of Rs. 5.08 crore on sales of Rs. 51 crore during first six months ended on September 30, 2010. Considering these figures it can be assumed that the company may post the net profit of Rs. 10.16 crore on sales of Rs. 103 crore at the end of current FY.

- Recommendation :- With reference to its financial performance for the FY 2010 the PE ratio is worked out at 21.35 which is higher than its peer companies like Camlin fine Chem having PE ratio is average 16. The RONW of the company is also as much higher as 32.24 % P/BV Ratio is as much higher as 7.10 - The annual estimated EPS could be worked out at Rs. 8.76 based on its half yearly performance of FY 2010. In such case the PE ratio is reduced to 11.18 based on estimated EPS of post IPO diluted equity and its P/BV could be worked out at 5.52. - Considering all these facts it can be assumed tha the company may maintain it rest of half yearly performance intact. The stock is offered at good valuation.

Dear Dinesh,

Could you please share 1 OR 2 blue chip share?

Dear Dinesh,
5 percent return in 3 days is fantastic return.If you do 10 such trades you will get 50 percent returns in one month.There is absolutely zero risk as far as I am concerned.I buy shares only when I feel there is very slim chance of loss.Its risk is less than any blue chip share for these 3 days.

Hello Sreedhar and Gem IPO Finder,

Kindly share your view on Bombay Burmah Trading Corporation Ltd.

Regare,
Anil

Hello Sreedhar,

Are you still holding LIC?...if yes then what target your are looking for?

yesterday I have sold 50% and remaining 50% I am holding for target of 220.

Regards,
Anil

If you see the Financials of the company, it has a net profit turnover ratio of 7.45% in respect to the PY of 6.18%. An increase of 1.27% is due to its IPO. The Rating for the company is 3 out of 5. It shows that the company has average fundamentals.
Company Financials:
Particulars      For the year / period ended (in Rs. Lakhs)
      31-Mar-10      31-Mar-09      30-Mar-08      30-Mar-07      30-Mar-06
Total Income      6891.92      5064.64      4329.21      3,731.85      2,403.15
Profit After Tax (PAT)      513.45      313.04      258.30      193.58      136.97
Net Profit Turnover Ratio      7.45%      6.18%      5.97%      5.19%      5.70%

Dear Sreedhar
Thanks for your clarification. I think the misunderstanding is now clear to all. Please carry on your good work for the benefit of all the people on this forum.
In current market situation so many blue chips stock are available at discount price which will easily give more than 5% return in short period then why you are buying Talwalkrs & Thanga in which the risk is huge and reward is less.

Dear CLD
For your clarification ICWA is a professional qualification like CA & CS and it is a prestigious degree.
With the help of this degree I am working as a Finance Manager in a MNC at Pune.
Regarding your query on Hanung Toys, a investor or trader who has invested in shares on its own are supposed to know all the information about that shares. This information is easily available on public domain. If he has not the such capability then use the services of expert or broker or invest through Mutual Fund.
Sometimes due to shortage of time I will not be able to share the all the information. In future I will try to do that.

Hi Sreedhar,

Your advice on OMKAR please?

Dear Dinesh,
I have already mentioned now with more people following me my responsibilty has increased manifold.As you are aware I post what I bought.My main intention is to be safe than sorry.I believe Talwalkrs & Thanga will give atleast 5 percent if not more & will surely not give loss.I could have also posted Bhagyanagar India which I bought today at 21 & Mannapuram which I bought at 139 but I feel Talwalkars & Thanga are more safe.
So thats the case .My aim is always to minimise the loss & maximise the profit & am confident I can do it.Anyways thanks for the clarification.I am always in for a healthy discussion.Can you give me the reason why you are negative on both stocks so that I can know something which I may be missing.

Earlybird incentive for 1st day application is old gimmick for unusually high level of subscription on 1st day.

Sreedhar ji,
plz tell me any share for short period...
plz plz.....

hello Sreedhar ji,
Sir i am new member in chittorgarh.com.
first i wish you a Belated HAPPY BIRTHDAY.
sir, plz suggest me for this ipo(omkat).

Sreedhar ji

on your call I bought Hanung toys at 200. Should I book profit since it is said to have limited upside left or should I wait for some more time to check its further moment. I am basically a long term investor. What is your take on this stock. What is its trading range keeping present market condition into view.

You have not given any take on Reliance. It has closed at 971 today. Around this level you have puchased it a number of times in the past & made lot of money in its trading range of 960 to 1130 as told by you in one of your posts. Should we go for its purchase now. It is probably the safest bet for investing.

Mr.Dinesh singh ji,

Your post is really professional reply and thank you for maintaining everybody spirit and skills.
viswanadham

Dinesh Singh ji

You have been in the market for 10 years & that is a good length of experiance. You are also a professional person that adds quality to your experiance.

What is this ICWA qualification? Couldn't you land up in a good job with this qualification? Anyhow I appreciate your idea that every one can put up his views on the sight but take care that it does not hurt sentiments of any other expert.

It would have been appreciated if while selling Hanung Toys at 242, You would have given the reasons like resistance level etc. along with your information of selling. It would also have been appreciated that such call, say, to sell Hanung between 240 to 245, could have been posted much earlier say yesterday. After all you knew that this script will face stiff resitance at 245 which was crucial for deciding the sale by you. You sold at 242 & the close was at 238. It makes a differance. Timely information would have let many sell above 240. Please take care of it in future. Your experience & expertise will be judged by how much accurate prediction you give in advance so that boarders can take maximum benefits.

Can you tell how you find upper & lower levels of resistances of any stock.

OMKAR SPECIALITY LTD IPO
TODAY THE FIRST DAY OF IPO HAS SUBCRIBED .98 TIMES TOTAL WITH RETAIL 2 TIMES AND NII 1.6 TIMES APPLING FOR IT
GRADE 3 IPO
PREMIUM RS 7 TO 8 IN GREY MARKET LIKELY TOO GO UP
I AM APPLYING FOR THE SAME IN 300 SHARES EACH IN MY FAMILY ACCOUNTS
GOOD LUCK

1 QIBs 4050000 - 0.00 (0 times)
2 NII 1215000 2040720 1.68 (1.68 times)
3 RIIs 2835000 5753100 2.03 (2.03 times)
------------------------------------ as per nse website...
whats going there???
why RII & NII are showing such a huge response for this....
is it really good one to invest???
or any operator play to make real RIIs to immerse???

share ur thoughts..