Sharing some fundamental ratio analysis for this. - https://docs.google.com/spreadsheets/d/1oGG0aRhrtUTrlT_OVMCFuNSF8HMFNa1MYeXmteV-GBc/edit?usp=sharing
From the looks of it, it seems that Servotech has improved a lot in the last 1 year. I am looking for red flags and share them here as and when I get time.
The company doesn''t has its own premise for manufacturing, sells or warehouse. All are taken on lease. The 75% of business come from top 5 clients. This IPO is very risky. I am avoiding it.
Dosto mene iske ipo ka video dekha youtube par to pata laga ke iske promoter ne saare profit ko bonus share banakar apne hi account me jama kiye hai. Iska matlab company kuchh surplus nahi rakhti. Aur saare director ki loan ko usne capital share banaya hai. Ghatiy ipo hai.
According to financial statements, I observed that the sudden jump is because of increase in turnover by more than 175% in last 2 years due to Government orders. Products are similar in all orders, which must have resulted in economies of scale and jump in profits.