Parag Milk Foods Ltd IPO Message Board (Page 36)

@Septaji, today I had the first taste of the vagaries of market. I was (still am) bullish on J Kumar Infra & upon returning from office today discovered that the stock had fallen by 11%! BMC (Bombay Municipal Corporation) has indicted 6 contractors (including J Kumar) for sub standard work & recommended to blacklist them. Contractors, more often than not, are fraudulent people but there is a political angle to such blacklisting actions as well - BMC (esp when Civic polls are around) is usually under immense pressure by political parties to crack down on builders in order to win some public goodwill.

I did not see any such thing coming & had not put any stop-loss. Don''t know how far down will this go but tomorrow I''ll book my first loss (-6.3%) in this brief stint of 3 months in stock market.

Which type of stop-loss would u recommend..limit order or market order? Please suggest.

Gravitas sorry to hear ur loss. Such things keep happening. Even though u have asked Septa, I would like to give suggestion. Its always better to go for limit loss. N its always better to get out of a falling stock on such news sooner than later. Another suggestion. Avoid infra stocks altogether till sentiments improve. Even if u want to buy then buy JMC projects or Ahluwalia Contracts.

Gravitas it is part and parcel of investing in stock market. One gold rule always have a stop loss play and review it as frequently as possible. With regards to type of stop loss in this particular case ur option is Stop Loss Orders at market because of the position.

However Stop limit order is the stop loss u should have on your portfolio and review as frequently as possible.

Tks for the FV calculation, Septaji. For a reasonable MoS of 25%, a sustained EPS growth rate of 25% for 10 years is required which is a long shot....

I like the company to some extent but its high price (PE in the range 38x-40x) is sapping away all the enthusiasm.

i am also not that guns ho of Parag Milks IPO however compare to its peers it is cheap.

Dear eagleye, arjunbhai, septa and all broaders,

If 12 rs retail discount is there than how the premium sauda will be closed? If it lists at 250 and sold at 40 premium.

Yes there will be a discount of Rs. 12 on the final issue price of retail bidders and eligible employees.

Eagleye,septa,arjunbhai.....etc

Pls give me knowledge about retail portion

Thyrocare 35% retail,
Parag 10% in retail

There is any rules about retail portion?
Pls reply.....

Septa sir thanks for sharing knowledge. Really you have very good knowledge.

Hi Septa,

From your message
76.1. Septa Apr 26, 2016 11:14:38 PM IST
SEBIin order to protect retail investor have some guideline if a new IPO company had loss in any financial prior to three years of issue date then the maximum they can offer retail investor is 10% if no loss then 35% to RII... hope this clear ur question

I wanted to understand that in case of Parag IPO, the company has net profit since FY 12 i.e. 4 years, then why the retail portion is 10%. The only loss reported was in FY 11 which is 5 yrs beyond the last audited financials available.

request pls clarify.

regards,
Samarth

SEPTA SIR I WAS AT BEGINNING TO TELL AVOID THIS IPO WHICH NOW MANY OTHERS ALSO TELL

yes DORY IN THE BEGINNING u always say avoid :) so not change ur mind this time

This mgmt is pathetic and is misleading investors...they have presented financials as of December 2015 with some CCD''s outstanding as on that date...as on December 2015 they have shown shareholders equity of 278 cr with 68 cr of CCD...Unassuming investors like us would simply compute RoE assuming 40 cr as PAT for FY16 and adding that to FY15 shareholders equity of 123 cr and completely ignoring that nearly 125 cr of CCD''s were outstanding even at FY15 end!

Once these CCD''s are which they have to be prior to IPO as per SEBI rules), the shareholders equity of the Company will expand to ~355 cr...on this the RoE would drop to 11% assuming 40 cr PAT for FY16!

AVOID!

Once these CCDs are which they have to be prior to IPO as per SEBI rules), the shareholders equity of the Company will expand to ~355 cr...on this the RoE would drop to 11% assuming 40 cr PAT for FY16!

"Converted" word for CCD''s is going missing every time...!!!

Thyrocare Technologies on Tuesday raised Rs 144 crore by allotting 3.22 million shares to 15 anchor investors.

The anchor investors included Nomura, Merrill Lynch, DSP Blackrock, HDFC MF and Birla Sunlife MF.

The shares were alloted at Rs 446 per share.

Thyrocare''s IPO price band is Rs 420-446 per share. The issue opens on Wednesday and closes on Friday.

Parag milk likely to listed in some discount

Few point from Draft
1.Loan payment defaults. Union bank sbi etc.
2. Qualifications from Auditor. FY14
3. EPS FY16 6.7 PE 34-38X
4. NAV 44
5. Company paid Bonus 2:1
6. IT demand etc. Matter pending from long time

Bv 44 price 215.
Eps 6.7 FY 16

lately i have seen any backing from motilal oswal have not done well on listing which is not a good sign...

GMP updates at your end? ... for Thyrocare, Ujjivan & Parag

Actual Parag Milk IPO PE is not 27 got my calculation wrong it actual 46 Approx based on TTM EPS. At 47 PE it is expensive however RONW is close to 26% compare to others at 1.5% to max 10%.

Nice observation

"Converted" word for CCD''s is going missing every time...!!!

Rs 12 Discount is confirm or not ???

What is the kostak rate ??

Pantagali baba ramdev cow product people buy so not much growth for parag left nothing attractive in ipo

seems worth applying at Rs 227 subject to QIB subscription

You have been a buyer in Parag even @350+ ... :)

PARAG MILK FOODS LIMITED
RED HERRING PROSPECTUS
Dated April 21, 2016

Available here ...

http://www.investmentbank.kotak.com/downloads/parag-milk-foods-limited-RHP.pdf

thank u

but septa sir FOR DAIRY CO PE IS NOT TO COMPARE THEN WHICH IS FAIR MEASURE TO COMPARE ?

Op margin and p.e is a good comparision

lets see RHP WHEN IT COMES BUT NOTHING IN PARAG IPO THAT ATTRACT

Rhp Needed
Eagleye

not yet uploaded anywhere ... hopefully later tonight ... or else early tomorrow morning ... will share with you as soon as I get it

Dear Arjunbhai,


PARAG MILK FOODS LIMITED
RED HERRING PROSPECTUS
Dated April 21, 2016

Available here ...

http://www.investmentbank.kotak.com/downloads/parag-milk-foods-limited-RHP.pdf

but septa sir PARAG INCUR LOSSES THEN HOW ITS CHEAP ROCE AND RONW THAN HUTSUN AGRO ? U SUDDENLY FAVOUR PARAG IPO WHAT HAPPEN ?

i never compared RONW or ROCE i just compared PE before with 350 IPO price and now 227 IPO....

septa sir can u please post calculation of comparison based on ROCE AND RONW

anyway i will do for u DROY let me first get hold of RHP

Sorry to say...mehul ,even can''t.. Write..properly.in English... And....he says..he..is c.a.......tooooooooo