Parag Milk Foods Ltd IPO Message Board (Page 34)

at 760 Hcl tech looks good i have brought

good deal then

Same here. Bought 200 @ 765.

SEPTA SIR WILL U APPLY TO PARAG IPO ?

But i will ready to sale Application in grey market , if it fetches more than 1000 per application. Eagleye can assist us on d same.
I m not getting more than 500 per application before yesterday crash in my city.

On curiosity, i had moved inside the lead manager Motilal oswal page and i found that 7 out of 8 issues managed by them are trading below issue price and 50% becomes penny stock.

@PSR ji
Our money is not meant for losses.
Since last year i.e. from Inox wind, i m applying on all major IPOs and except 2 occasion (CCD and Precision camshafts) , i had not faced losses.
Parag is not fundamentally sound company. Baba Ramdev yesterday told that they will setup 6 food processing units in different states including Maharashtra in 1 year and everyone knows that on pricing and quality front , it is not easy to beat patanjali even by colgate, HUL and Dabur.
Therefore big avoid to this IPO despite advised by some seniors.

many more IPO will come so missing this one IMO is good strategy. plus SEBI had many question mark on this companies balance sheet that was the reason for 10% RII and not 35% even with average operating profit above the threshold. However with just 10% float for RII operators will target this counter so would not be surprised if this list at premium.

Parag Milk Foods gets approval for Export of cheese to Russia today. What a coincidence.
It is just a coincidence or planned event/news for d success of IPO.
It has to be noted that Russia had earlier imported 2.5 lakh tonnes cheese from other euro nation out of its annual consumption of 2.9 lakh tonnes. But euro nation now restricted supply after ukraine crisis
Economic Times

presently international price of cheese is around Rs 200000 per ton and parag is cheese in indian market at retail price is around 550 kg to 650 Kg which equates to Rs550000 to Rs 650000 say they give 40% margin to retail then parag selling price will be around 360000.

So all this export to russia will increase the top line however with present export price it will not be good for bottom line

One critical observation on Parag Milk... Pastnoji has few products with "Go" word in it. Parag filed a case and Order has gone against Parag. So Parag has trademark for "Go" but no copyright... Means anyone can have "Go" word in their brand as long as it has a different logo design ...

Sanitarium Health owners of some famous FMCG brand like Weet-Bix peanut butter also has product called Up & GO......

Regarding ADAG group companies
Someone had discussed about losses he suffered on ADAG group companies
Everyone knows that ADAG group are mainly engaged in highly capital intensive sector/ business , which are very difficult to run in india in past as well as in future also.
I will explain u d same with some example, ADAG is operating Metro in Mumbai as well as delhi Airport metro there minimum fare is just 10-15 rupees per ride and if u compare d same with Newyork metro, there minimum fare is 2.75 USD per ride , i.e. Approx. 180 Rs. per ride.
Than u may say that, why i m comparing this.
Let me explain, constructing a Metro line is highly capital intensive but in india , we are not even ready to pay for their cost and we as a investors expect to earn profit on companies operating in infra sector. U may appreciate that india''s best infra company L nd T are able to register robust growth in their Top line(sales) since last many year but their bottom line (profit) is pathetic.
Same with R power , power sector is highly regulated in india, no company can expect exponential growth from here being regulated pricing for end customer and no compensatory measure by govt except for state run discoms.
Expert septa, RKS are requested to conclude the same. We will be highly grateful

I myself lost some money with ADAG IPOs would i invest again the answer is no. IMO the whole ADAG group is in tight rope with the amount of debt in balance sheet. not only that a major part of promoter holding is pledge so better to avoid such risky shares not sure how long will bank continue to finance these Lagging business....

Let''s wait for their results. Everything will be clear then.

HOW MANY APPLICATION FORM AVAILABLE FOR RETAIL INVESTOR
767 CR X 10% =76.7 CR
76.7/227X65 = 51982 APPLICATION ONLY
IS THIS CALCULATION RIGHT

its fair value 204 comparing with prabhat dairy on pe ratio and np margin basis so avoid parag ipo

GMPs:-
No volume
GMP 27-29

Parag GMP 31-32

Parag Milk Analyst Meet Takeaways:
Price Bank:220-227
Mcap @ 227 = 2100 cr

# Parag Milk is an integrated farm to product company
# Govardhan, Go Cheese, Top Up and Pride of Cows are the four brands of the company
# Go brand was launched in 2010
# Company has Pan India network: >3000 distributors, 104 super stock and 15 depot
# Company has milk processing capacity of 20lk litres per day
# Average daily milk procurement of 10 lakh litres per day
# Parag brand available at ~175000 retail outlets
# Each brand is positioned to get premium pricing. For e.g. Govardhan milk available at Rs 40/l, Go Milk available at Rs 60/l and Pride of Cows available for Rs 80/l
# Company has 32% market share in Cheese market. Amul is the market leader with 40% market share
# 2-3% export revenue. It exports to around 26 countries
# Investment phase is done with capacities are now in place to grow
# Targeted D/E is below 1x
# Pride of Cows in only 1-2% of the total revenue
# 1/3rd of business from fresh milk and skimmed milk, 2/3 business from customer value added products. Out of this 2/3rd, 10% of the business is B2B, i.e. 6-7% of total revenue from institutional clients
# No margin differential between B2B and B2C

Financials:
# 21.6% sales CAGR over 5 years
# 9mFY16 EBITDA margin is ~8.8% vs 7.6% in 2011
# 9mFY16 PAT margin is around 2.6% vs 2.1% in FY12
# FY16 PAT would be ~42crs. So company would be trading at 50 P/E vs Prabhat Dairy PE of 45-46x

Sorry as already posted by a member.

eagleye it will open in discount

Res.Eagle eye
Yesterday you wrote that you had attend meeting of parag milk at mumbai
My query is that any body can attend meeting or only invited people ?

anyone can attend ... you just have to say that you are an analyst .. and they will allow you to attend the meeting .. .

Dear Eagle eye, By attending these meetings what are you able to learn?

Eagle, please update Kostak rate for Parag

Please read as Eagleye

Parag Kostak 500 per form

eagleye will u apply to parag ? Will parag oversubscribe in qib quota ?

Parag GMP 32 - 33

Eagleye, you told that you will participate in the Analyst meet of Parag Milk.What were the key take away from the meeting?
Whether to invest or not?

I refer my earlier posting ...

Eagleye Apr 27, 2016 8:00:00 PM IST Reply
I attended the Parag Milk Analyst Meet today ...

And your response to the same ...
rahoolgupta Apr 28, 2016 10:12:28 AM IST
Thanks for the info.


I hope that suffices your query....

It is like Bhag Milkha Bhag (Bhag Manu Manek Bhag - Harshad Mehta is Coming).....

interesting day

..next week''s GANN turning (3/5/16 - 7/5/16) will only provide the decisive trend for Bears'' Till then Bulls are likely to dominate the sentiment, as no tangible hurdle before 8300-8400.

If Nifty closes above 7965 (spot) one need to remain careful in shorting,

Particularly in Banking and Reliance

HOS: Business consolidation - ADAG group to undergo massive business restructuring . Reliance power to merge with reliance infra . Hearing Anil ambani to make for the losses of IPO in Rpower to the shareholders . Reliance infra will pay 20 rs to each shareholder of reliance power along with it 8 shares of reliance power will get 1 share of reliance infra .

I made huge loss in the Reliance Power IPO and went on to buy on declines but to no avail.
Ultimately, I sold all my 435 shares @ 48.35/- few weeks back...booked a loss of Approx 12000/-... Even in Reliance Capital the loss was immense approx 10000/-...Anil Ambani companies does not suit me...Will never invest in Anil Ambani''s companies as such :-(

What is the link eagleye? Would like to read it.