Quest Laboratories Limited IPO Message Board (Page 5)

Applying ff

Why allotment is on 21st May and not 20th May.

​@🔥Black Rock 🔥 20th is aholiday

20 KO ELECTION HAI

​@lokes Are u applying here ?? Open?

And what about go digit strategy?

Skipping this due to criminal and promiscuous background of the promoter.

Should apply for listing gain ??? Experts pls guide

Blockbuster LM, Lacklustre MM, combination last seen in Yash Optics.
Allotees should be prepared to play fastest finger and sell before MM does on listing day.
Company manufacturing pharmaceutical products from 1998. Promoters while not academically qualified seem to be hands on experienced people.
4 criminal cases/matters against company & its promoters for supply NSQ (Non Standard Quality) products in various states.
Earlier promoters were husband wife duo of Anil Sabarwal and Kavita Sabarwal. Kavita Sabarwal passed away in 2021. Now RHP shows husband wife duo of Anil Sabarwal (56) and Tejaswini Sabarwal (28) as promoters. Tejaswini Sabarwal (Chouhan) has experience of 5 years in the company that is she has been working since 2019 when Kavita Sabarwal was alive. Rest is left to investors imagination. Prospective investors have to think about how much promoter’s personal life will impact company performance.
As per EPFO company deposited PF for 71 employees for Mar-24, 61 employees for Mar-23 and 48 employees for Mar-22. Company has declared it had 83 employees as on 31-Dec-23.
Material cost as % of sales is consistently coming down, from 80.46% for 20-21 to 64.37% for 9MFY24.
Highly dependent on government business, up from 18% of sales for 20-21 to 78% for 9MFY24.
Top 10 customers make up 97.5% of sales for 9MFY24 while top 10 vendor provide 63% of the material consumed.
Receivables have jumped from Rs 20 cr on 31-mar-23 to Rs 29.7 cr on 31-Dec-23. As on 31-Dec-23, Rs 7.2 cr is outstanding for 6 mths to 1 year while Rs 1.9 cr is outstanding for more than 1 year. Company has written off bad debt of Rs 1.34 cr in 20-21 and 21-22. It appears there is no provision for bad debts in Balance Sheet.
Company has paid fines and penalties of Rs 2.24 cr in 22-23 and Rs 2.11 cr in 9MFY24.
Other expenses were 13.8% of sales for 22-23 and 11% of sales for 9MFY23. Whether the reduction is artificial or realistic is to be judged by investors. Commission paid was Rs 72 lacs in 22-23 and Rs 0.5 lacs in 9MFY24. Similarly, consultancy fees paid were Rs 53 lacs in 22-23 and Rs 1.4 lacs for 9MFY24.
Business borrowings are from HDFC bank with interest rate of 8.87% to 11.25%. Unsecured loans are @ 12%, although amount is immaterial.
DSO is continuously increasing, from 124 days in 22-23 to 127 days iin 23-24 and 159 days in 24-25, indicating company has to provide longer credit to grow its business.
Cash conversion cycle (Inventory+Debtors-Creditors) was (-ve) 5 days for 22-23, (+ve) 55 days for 23-24 estimated and 133 days for 24-25 estimated. Shows that company is facing strong competition and cannot sustain business without providing very long credit period.
Based on working capital projections, company expects turnover of Rs 107 cr in 23-24 and Rs 115 cr in 24-25, implying a growth rate of 7.5% for 24-25.
Average cash flow from operations. PBT for 45M till Dec-23 is Rs 24.66 cr while CFOB4T for the same period is Rs 12.11 cr, largely managed by stretched creditors payments. How long is it sustainable remains to be seen.
Capacity utilisation across different categories varies from 25% to 81%. Page 160 of RHP shows capacity utilisation details. It seems company has done capacity expansion in 21-22 and 22-23 and there appears to be significant underutilization in Dry Syrup, External Liquid and Ointment in 23-24. The IPO proceeds will be used to establish Vial Liquid and Vial ampoule powder lines.
Company has done pre-IPO placement of 11.50 lac shares @ Rs 30 per share in Jan-24 and IPO in May-24 is @ Rs 97 per share. Pre-IPO investors include Kamlesh Gandhi, Priti Gandhi, 1955 ventures, Pooja Bansal and others. Fellow CG boarders may share background of these investors, if available.
Anchor investors include Rajasthan Global Securities and other regular investors.

Hope everyone get out because looks like it will be in LC for some days

Very bad performance , continue lower circuit,no faith on LM.

GMP 20/- buyer

GMP Websites are not updated.

​@M Gupta Thank you..r u applying open or selling in grey?

Are you buying the application?

Zenith Drugs, a recent listing in same space, has had a torrid time - trading at FY24E PE of just 11 (or market expecting poor H2), and at half of post listing peak. JFL is at 15 PE. Beta Drugs not right comp since it makes Oncology drugs.

Financials look alright, but market not giving this sector any premium. Quest coming at 15 PE which leaves nothing on the table.

Same LM Same MM but last ipo Silkflex is now under pressure

​@Palka No, skipping

Anchors are there in this IPO, QIB section also there but GMP still does not exists. SOmething fishy.

Am I reading it correct ... Promoter Anil Kumar Sabharwal age 56 years...
Married to whole time director Tejaswini Sabharwal aged 28 years.

🤷🤷🙆🙆🤷🤷🙆🙆🙊🙉🙊🙉🙊🙉

Inka aam mein man lagta hoga?

Well let us say "Old medicine in New bottle"

True?

Most likely will skip this scrip.

I am skipping.

Why this company has 0% GMP while dilip davda sir given may apply recommendations ?

​@Kaulav There is no any correlation between GMP & DD Sir's review

DD sir's may apply in SME, for 9/10 times means only risky players can bid.

Dear senior members

No discussion in this page. No data on gmp for this issue available as well. Sector looks good. Same with company as per my understanding. I intend to apply here. Whats your call on this issue? Throw some light if you find any cons.

Below is my view.

LM is Rikhav and GMP is zero, condering secondary markets up and down this can land anywhere. Risk takers and those who has earned in recent IPO'S can apply.

@Basuvr
Thank you sir for clear cut view. I've decided not to apply.

Quite liking this one!

Keep minting!

Already applied FF here from multiple accounts. All other members have done a very worthy and relevant analysis however I'm trying to view the business for what it's worth and feel that there is value on the table for multiple reasons. Regret not being able to respond earlier.

Keep minting!

Fell short......once again. Gone with the wind.

Issue Type: Book Built
Revenue : Moderate
PAT : Good with comparison to sales
Debt : Low Debt, can be easily repaid. PAT is higher then Debt which is a healthy sign.
Overall Financials : Good
Company Valuation and Peer to peer Comparison: Justified Valuation
Anchor Investment : YES
Product Market Fit : Good as demand for Pharma products keep on increasing
Customer Base: Data Only Domestic
Lead Manager & Registrar Track Record : Very Good
Note: Company has WHO certification for its products which is an Advantage.
Apply: YES

Just a word of Caution!
Company has few ongoing Criminal cases as mentioned in there RHP, which is bit turn down. Need to see how company cope up with the same in coming time.

Looks Good..
Pharma sector.. Good financials..!!

But LM consistently posted good.

​@SOAM You are right Bhai..
No GMP... Will wait for last hours subscription..!!