1. Just a few months back, at the time of TL IPO, they were eyeing for a Valuation of 3,000 Cr. Now, it''s 4000/- Crores. What''s changed in just a few months? Comparison with TL may give an illusion that it''s priced reasonably but please bear in mind that retailers holding is very scant in TL (it''s reduced to below 5% I think but not sure) & all those idiots (Institutional Investors) are artificially propping up the price by not selling. Given the experience with TL, will those investors line-up again for Quess? TL is hopelessly pricey & is therefore not a good benchmark to assess Quess''s price. I don''t like 10x-returns-in-just-a-few years the outgoing investors in Quess are about to make. 2.The high historical growth rate was mainly fuelled by acquisitions. This is not so easy to sustain. A couple of recent acquisitions are still loss making. 3. I do not have doubts over management competence but the Valuation is steep.
I may still apply but with much ebbed out enthusiasm.
120. Eagleye| Link| Bookmark|
June 28, 2016 6:06:09 PM
IPO Guru (6600+ Posts, 21900+ Likes)
The financials for FY 2015 are for 15 months and hence YoY comparison with FY 2016 is not possible as there is seasonality in the business. For FY 2016, consolidated net sales stood at Rs 3435 crore, OP at Rs 164.32 crore and PBT stood at Rs 124.75 crore. Due to MAT credit, the tax rate was lower and, thus, PAT stood at Rs 88.52 crore. At the higher price band of Rs 317, on a diluted equity share capital of the company of Rs 125.90 crore of face value of Rs 10 each, the EPS for FY 2016 works out to Rs 7.
At higher price band of Rs 317, Quess is being offered at a P/E of 45.3 times its FY 2016 earnings.
Nearest comparable listed player is TeamLease. At the current market price of Rs 886, TeamLease is trading at around 60 times its FY 2016 consolidated fully diluted earnings. TeamLease is a debt-free company, while Quess had a long-term borrowing of around Rs 35 crore and short-term borrowing of around Rs 339 crore as on March 2016.
While TeamLease is looking out for acquisitions and has largely grown organically, Quess has successfully integrated and leveraged its previous acquisitions. Around 98% of TeamLease revenue comes from staffing services, where as Quess has a much more diversified customer base and diversified business stream of revenue, which has enabled Quess to generate better OPM of more than 4% for the past four years as compared to around 1% OPM of TeamLease.
117. Chem cho| Link| Bookmark|
June 28, 2016 5:40:06 PM
IPO Guru (2500+ Posts, 2700+ Likes)
suddenly new comers are on L&T infotech site pl be care with their views
better to apply at upper band if you are applying in Retail category
114. Chem cho| Link| Bookmark|
June 28, 2016 12:58:19 PM
IPO Guru (2500+ Posts, 2700+ Likes)
If money is lying ideal in saving account why not apply , may be you are one of the lucky lottery winner , Think it is Diwali or christmas Like you buy lottery ticket , in festival
In July13, Everstone acquired 15% stake for 200 Cr. Company is eyeing c.4000 Cr valuation at IPO which values Everstone’s investment at 600 Cr (3x return in 3 years).
I already like this issue along with Advanced Enzymes.
Hinduja Leyland Finance, CL Educate get Sebi approval for IPO
Markets regulator Sebi has given approval to Hinduja Leyland Finance, an arm of Ashok Leyland, and test-prep player CL Educate to launch their initial public offerings.
The two companies had filed their draft papers with Securities and Exchange Board of India (Sebi) on March 30.
The regulator cleared the proposed initial share sales and gave final observations on the initial public offers (IPOs) on June 24, as per the latest information.
Hinduja Leyland Finance''s IPO comprises fresh issue of equity shares worth Rs 500 crore and an offer for sale up to 26,608,810 scrips by existing shareholders.
The company is considering a pre-offer placement of up to 2.6 crore equity shares for an amount not exceeding Rs 200 crore.
Axis Capital, ICICI Securities, SBI Capital Markets and Yes Securities are the merchant bankers for the public issue.
Hinduja Leyland Finance is a part of Hinduja Group which has global presence in automobiles, energy, IT/ITeS, banking and finance, media, entertainment and infrastructure.
CL Educate plans to come out with a public issue of up to 46,90,533 equity shares. This included a fresh issue of 20,60,652 shares and an offer for sale of up to 26,29,881 scrips by existing shareholders.
Proceeds of the issue will be used for acquisitions and other strategic initiatives, repayment of loans, to fund working capital requirements and for other general corporate purposes.
Kotak Mahindra Capital Company will manage the IPO.
The city-based firm provides educational services across the value chain including content and infrastructure.
CL Educate had filed its initial papers with Sebi in September 2014 but withdrew the IPO documents in August last year on account of strategic opportunities.
The equity shares of both companies will be listed on BSE and the National
🛃It is integrated business services provider of It serves across 4 segments namely,
1. Global Technology Solutions, 2. People & Services, 3. Integrated Facility Management 4. Industrial Asset Management.
🛃The company has operations in 8 countries: USA, Canada, Srilanka, UAE, India, Malaysia, Philippines and Singapore, over 1,20,000 employees with a pan-India presence of 47 offices across 26 cities and serves over 1,300 customers.
🛃The Largest IT Staff Augmentation Provider in India based on number of employees
🛃The Third Largest General Staffing Company in India based on number of employees
🛃Objects of the issue 1. Repayment of debt availed by the Company (` 50 Cr.), 2. Funding capital expenditure requirements of the Company and their Subsidiary, MFX US (` 71.7 Cr.), 3. Funding incremental working capital requirement (`159.9) 4. Acquisitions and other strategic initiatives (` 80 Cr.) and 5. General corporate purposes (`38.4 Cr.)
OUR VIEW 🛃The company posted strong revenue growth of over 75% CAGR in last 5 years.
🛃Relies extensively on short term borrowings for its business requirements.
🛃When compared with Peers such as TeamLease which listed at 55, a P/E of ~45 of QUESS CORP looks decently valued.
🛃In this case we are betting on the Management of Quess Corp, particularly Ajit Isaac, who has strong execution skills and capabilities to scale up.
🛃Since the business is low margin, though it has a healthy Return on Capital of 25% which makes it difficult for others to enter. We believe the barriers to entry are high in this business and hence it will command premium valuations.
Thanks, Oja. The company has a D/E of 2.2. Although it''s not alarming but still surprisingly high. The main reason is its inorganic growth (debt funded acquisitions) strategy. The core business model remains debt-lite. Also, IPO proceeds would help alleviate the debt to some extent. So, overall it''s not much of a concern.
Beware of its high historical growth rates. It''s not easy to maintain such rates & therefore not prudent to add more post listing unless it surprises us with a subdued listing (like Ujjivan).
One more thing..they are planning to enter ''logistics'' business (!) which I think is an opportune move. Future growth strongly depends on management acumen. Has anyone profiled its promoter - Issac?
Britain market down 200 points aftershock seen ,another black tuesday types may come
107. Khemka Jun 24, 2016 7:38:34 PM IST Reply Mahanagar Gas Limited IPO
Britain market cheers Brexit news with down of just 100 points after opening at 500 points bellow, aftershock may be on monday seen , now scotland and few more nations mulling exit from EU