Prakash Steelage Ltd IPO Message Board (Page 23)

Listing will be at Rs. 500/- Sure.

Guys

Ok kind of issue with a lot of active operators..
Good chances of making money in the issue.
Apply in full load.

company-: PRAKASH STEELAGE
BV=42,
Profit only for last five year,
EPS Rs-10
LOGICAL PRICE CAN BE Rs 80
SINCE FIRST GENERATION COMPANY A RISK DISCOUNT OF Rs 15 BE GIVEN ie net price per share be = Rs 65

Sine I am ameture, I want to assess this script for next 10 years without buying a single share. This will add value to my experience.

i fail to understand why they are going for capacity expansion when there capacity utilisation for the past few years is around 50 to 55 % .......kindly throw some light boarders.......

kostak 1000 rs

Grey Market Premium of Prakash Steelage Ltd is Rs 9/- to Rs 10/-. Approx 10% gain.

Dear Natarajan,
Co is ok & is coming with reasonable valuations vs peers.They are expecting 30-40% CAGR for next 2 yrs.So not a bad issue,its an ok issue,you can apply for listing gains.

K.K.Natarajan / Sreedhar / Ravi, Bangalore,
What is listing gain in ipo ?

Dear Sreedhar / Ravi, Bangalore,
Though the rating for Prakash Steelage is not that good, looking at the subscription figures, it seems we can go for this. Now it is good that the QIB susbcription is ending a day in advance, which allows us the retailers to judge and decide. Please give your opinion on whether we can go in for listing gains in this issue.

102. bush
Listing will be rs. 250.
Dear issue prize 110 sp wha it possibal 250 ?
some time curcuit stop after then go up in starting
please clarifation above listing

It seems retail funds have dried up which can be seen from Only 6.5 times subscription of Bajaj corp.Lets see how many times prakash steelage will be subscribed in retail,It sure seems to be a bumper subscription in HNI.

apprux 8 to9 time sub.
ho shakta he !!!!!

Bihar tubes a Well run, highly profitable company in the same line is available @120. They have completed expansion at Hosur plant.

Retail portion will subscribe 10 times overal 18 times, Listing will be rs. 250.

Dear Ravi,
As I had mentioned in one of my posts,there were lot of price bids in retail which is significantly more than expected ratio of price bids to cut off.Now seen from enquiries from lot of new boarders it seems many of them have bid at 275 after deducting discount.Below is my post regarding subscription.
-----------------------------------------------------------
As expected EIL retail subscribed 3 times.But there is an interesting catch.Total 4469 Lakh shares were bid at 270 while while 4400 lakh shares were bid at 290 that means a difference of 69 lakhs.Approximately 49 Lakhs were price bids from retail.We do not exactly out of 69 Lakh bids at less than 290,how many of them are retail.Also employ quota subscribed only 50 percent so 3.6 lakhs will be distributed.Retail may get 1 lakh shares as overflow.So overall no of shares that will be alloted is a little bit hazy.
------------------------------------------------------------
Bajaj corp-750250/8935820=.08
SKS-1179962/14134246=.08
EIL-4900000/34515307=.14

So I think .06*34515307=20 Lakh will be rejected.Hence total subscription is 32515307 .Spil over from Employees quota is 1 Lakh shares.So now net subscription=32515307/11,643,581=2.8 times.After rejection of bids due to Pan ,technical etc it will be less than 2.8.
So I am expecting about 121 shares per full application.

taken from india bulls

Total income of company increased at a CAGR of 34.67% from Rs.98.94 Cr. in FY06 to Rs.438.38 Cr. FY10. This was due to increased capacity combined with better realization.
PAT increased at a CAGR of 85.56% from Rs.0.81 Cr. in FY06 to Rs.17.82 Cr. in FY10. This was due to higher margins and right product mix which was available due to the installation of the state of art machineries and due to savings in taxes because of higher depreciation benefits.
Wide fluctuations were reflected in Earnings Per Share of the company.EPS in the year ended March 31,2006 was 35.06 which was followed by drastic fall by 3.88 and rose to 15.84 by the year 2010.
RONW & ROCE of the company has increased from 24.36% and 17.21% in FY 06 to 35.03% and 21.52% respectively in FY 10.
The Debt equity ratio declined to 2.77 in FY10 from 3.74 in FY06. This indicates that the company reduced its debt proportion over the years which is very beneficial for the company.
OPM increased considerably from 3.10% in FY06 to 10.33% in FY10. There was a consistent rise in this ratio as there was a consistent increase in PBDIT and net sales. Same was the case of NPM which also rose consistently from 0.83% in FY06 to 4.08% in FY10.
Peer analysis

Company Face Value Net Sales (Cr.) PAT(Cr.) NPM(%) EPS(Rs.) Price P/E(Times)
Prakash Steelage Ltd.
10
437.10
17.82
4.08
10.18
100-110
10.80-9.82

Suraj Stainless Ltd.
10
174.54
8.60
4.93
5.05
69.90
13.84

Zenith Birla Ltd.
10
480.16
11.96
2.49
2.23
20.75
9.30


Valuation

On the basis of post issue EPS for FY 10, PE comes out to 10.80x at the lower price band and 9.82x at the upper price band while other players like Suraj Stainless and Zenith Birla are trading at 13.84x and 9.30x on their respective EPS or FY10. The company compares favorably with the other listed players. The company is now geared up to exploit the opportunity which is generated by Government of India by giving more focus and resources to expand engineering & infrastructure projects and thus seems growth oriented. Further, Based on the capacity expansion from12, 200 tonnes to 19,000 tonnes, the company is likely to achieve a CAGR around 30% for FY 11. The company specializes in meeting specific requirements of customers and offers complete solution for stainless steel welded & seamless pipes and tubes, for which there is growing demand.

NEW IPO IN AUG.....DATE VERY SOON
=================================
1)Va tech Wabag,
2)Gujarat Pipavav,
3)Orient green power,
4}Acropetal,
5}Bedmutha,
6}Gsycoal alloys.

prakask is v.goo i.p.o

PLZ TELL ME GMP OF PRAKASH STEALAGE

JIMMY BHAI,

CURRENT

GMP

SKS Rs.90 TO Rs.110

BAJAJ CORP Rs.135 TO Rs.145

.