Pipavav Shipyard Limited IPO Message Board (Page 11)

look at adani,nhpc.what do u think.

The shares of the company has been offered in a price band of Rs 55-60. The company became operational from April 1, 2009 so the peer group comparison won’t work here but as on March 31, 2009 the company was having an EPS of 0.08 while in the group Bharati Shipyard was having an EPS of 48.4 while the average EPS was 41.On a standalone restated basis, its net loss for fiscal year 2007 was Rs 6.01 crore while its net profit for fiscal year 2008 and fiscal year 2009 were Rs 4.93 crore and Rs. 4.92 crore, respectively. Negative cash flows were reported because it expended funds to construct the Pipavav Shipyard and its business will be dependent primarily on the Pipavav Shipyard. The issue has been fairly priced and can be opted but the concerns of the uncertainity of the industry a new entarant status of the company needs to be kept in mind.

One should never apply for this IPO, Instead buy punj loyad, who is going to make money in this IPO. who are the people going to buy it and earn mini losses of 80% with any correction in near future

Dear all

Wealth creation has to take place over long term only. People should not think about listing gains only. But also people should not lose money on listing. Because of the unlimited gains on listing which happened for the past 2 years or more both investors as well the corporates have become greed. This has to end to have a healthy market.

do no fill the pipavav issue as it is expensive.

sastu, saru, sunder, takau
biju su joie..............

WHAT IS RATE OF PIPAVAV SHIPYARD IN G.M.

THANKS

v e r y - e x p e n c i v e ! ! ! !


acoording to this co.
should be issued:-
on at face value rs.10 not on a premium.

its co's eps rs.0.82
price band rs.55-60 ,
pe multiple @ this price band is above 600, industry pe is 6.40 , now you compair.

how sebi allow such co.to issue share at such higher valuation?

Please post the book value,if anyone knows

Respected MR. 86,
Thank U Very much for nice analysis, Please Do give such analysis in future also. Once again Thank YOU.

thanks 86.pipavav for the posting. very key information.
let us see how other research analysts turn out.

thank once again 86.

oil prise may be fixed 1050 ,retal investers lose may be very high,listing prise 800 than 678 ,over subscription false ,look nhpc final prise 36 today 33 oversubcribe 24 times,last 50 ipo 96% below offer prise upto 95 % discount .

Dear Vishal,
If you consider the management ......you wil find some facts which few people know in this field. you have also not considered what? type of their business. I cannnot comment but my recommendations may be see the site of aishwaya telecom, in previous year.You see exceel Info. You see mahindra holidays. such kind of issue, I recommended apply,as your capacity,YOU WILL SOURLY EARN IN THIS ISSUE AT THE TIME OF LISTING +TWO DAYS.MY previous TRACK RECORD ON aishwaya telecom site.TUM HAME Yaad Karo ya Na Karo HAM TUMEH YAAD KIYE JAYAENGE. DEKHO IS ISSUE KI LISTING + ONE MONTH KO BHULA MAT DENA. Vishal & Dear all Investors.

Pipavav Shipyard is one of the India’s largest private shipyards and is aggressively being marketed not just a shipyard but as an engineering fabrication facility In the wake of the strong demand for bulk carriers globally in 2007, the company bagged orders in Dec 07 & Jan 08 even without setting up a shipbuilding facility However, as the chickens now come home to roost, the company is facing issues not only around existing orders but also with regards to incremental orders The lack of any track record, confusion over the “real” order book and non-existent revenues pose significant risks for investors in this IPO Our first cut valuation suggests that even at the lower end of the price band, Pipavav is being valued at 11X EV/Order book compared to 02X for Indian shipyards and 03-05X for global shipyards Such a premium looks aggressive considering that our primary data points to order cancellations and low margins on bagged orders
1 Given the lack of capabilities
• Our primary data and research across industry suggests that India has not emerged as a favourable destination for large ship building and fabrication because of lack of experience
• Whilst the company has appointed senior management from international shipyards, where is the company sourcing the second leg of team and the workers? Our primary data suggests that simply importing some global experts into a local firm (without importing the corresponding the middle management) confers negligible benefit
2 How does the company plan to compete with Koreans and Chinese shipyards, which have a 85-87% market share in the global bulk carrier market?

• Koreans and Chinese have emerged as the leaders in shipbuilding over the last four decades because of heavy government support, cultural factors supporting shipbuilding, high local demand and a strong anciliary industry supporting shipbuilding Despite decades of experience and available skills these Koeran and Chinese shipyards generate only 11% EBIT margins A new entrant like Pipapav could therefore face challenges in generating double digit EBIT margins

• Our primary data suggests that in order to make its mark in the global shipping industry, Indian shipbuilders should either carve a niche for themselves in new technology/clean technology ships or OSVs or smaller carriers which do not make economic sense for the large shipyards in China and Korea Players such as Bharati are building LNG powered ships and moving in that direction Which segment will Pipapav focus on to carve a niche for itself in this over-supplied industry?

3 What is the real order book of the company?

• Given the decline in global trade, the fall in the Baltic Dry Index and the worsening financial situation of shipping companies, Koreans and Chinese shipyards are still facing order cancellation for large bulk carriers such as Panamax Our primary data and available information suggests that Pipavav may also have order cancellations due to: (a) the financial difficulties faced by its European clients; and (b) the declining economic attractiveness of the ordered ships

• Pipavav’s DRHP suggests that the company is renegotiating 8-12 Panamax orders of its 22 orders Given declining visibility of business, shipping companies are renegotiating prices if not cancelling orders What could be the likely decline in order book value if the company were to try to salvage these orders?

4 What EBIT margins can Pipavav book from the existing order book?

• The Korean and Chinese shipyards post EBIT margins of 10-12% compared to 25-27% (including subsidies) for the Indian players However, since Pipavav will be mainly competing with Chinese and Koreans, would its margins be closer to international shipyards and heavy engineering peers rather than the Indian peers (which are not executing business similar to Pipavav)?

• Secondly our primary data suggests that Pipavav bid too aggressively and too low in order to win the ONGC order for 12 Offshore Support Vehicles (OSVs) The firm bid 30% below ONGC’s budgeted cost and 50% below other industry leaders Does this mean that Pipavav will be compromising margins in the domestic market in order gain prequalifications?

5 What is the basis for seeking stratospheric valuations?

• On relative valuations we find, Pipavav seeking valuation of 11X EV/Order book compared to 02X for Indian shipyards and 03-05X for Chinese and Korean shipyards Given the uncertainties around the order book, we find such valuations hard to justify

• On the book post the IPO, the company is seeking 21-22X P/B valuation which is at a premium to an average of 15X for operating large shipyards and heavy engineering companies in China and Korea

pipavav
kostak 2400-2600
gmp 7.-9

what is Bid lot size is it 100 OR 110

We should never apply in this IPO.
This is truly a bad company.

pipavav is a very good issue

Hi

I am writing first time for this blog, so from my side first of all a hello to everybody. Regarding the pipava IPO, i would like to inform you all that the company's future is in dark as there is no operational business. Secondly, if you go through the prospectus, there are lots of litigation against the company as well as against the promoters. Thirdly, the promoters don't have any prior experience in ship building industry. And lastly, they are having heavy debt which is a major issue as they do not have a repayment capacity.

So in short, management has commented some big dreams but reality is really bad. Therefore, i would request you to think twice before investing in this IPO.

Avoid or you will burn your fingers. Too expensive and will list below the issue price.