The issue has potential to become multi-bagger but in long term only. Though it is not aggressively priced but promoters should have left some more on table for the investors. P/BV of 3.80 for SME is not attractive valuation, still 1 to 2 upper circuit confirmed.
Apart from Gujarat, the company has a good market share in Rajasthan & Maharashtra. If we annualise the bottom line of June 2017 financials, the Return on Net Worth is more than 26% & the PE at issue price is 17.06x. Keeping the sector in mind & industry PE the issue seems reasonable.
Except valuation everything looks good. Sheetal is famous in Saurashtra region & is still in expansion mode. Proceeds will be used for purchase of capital assets which indicates its intention of expansion. if company can improve its margin it can be a multi beggar. Apply on last day looking at subscription
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October 15, 2017 3:53:42 PM
Top Contributor (200+ Posts, 500+ Likes)
Bapu people of Gujarat will definitely apply for this ..
Why has the Company issued bonus shares (in Sep 2017) in the ratio of 1:2 just before the public offer? Is anyone over aware of the reason/ rationale? I dont think the Company has given any justification, though there are references of issuance of bonus shares in the prospectus.
Hi, MD renumeration is only 48k per month and for other promoters are in line. CFO annual package is 2.5 Laga only ..Not sure for targeting market cap of 84 crore , this seems odd to me.