SIMPLEX AN EXCELLENT STOCK TO HOLD . PROFITS OF 10 CRORE PLUS. SIMILAR TO SADBHAV ENGINEERING WHICH IS AT 618 RS NOW. MIGHT SEE 400 ON LISTING AND IN FEW DAYS WILL GO ON TO 550-600. THIS COMANY IS IN EVERYTHING RELATED TO INFRASTRUCTURE- ROADS, FLYOVER, IRRIGATION,CAR PARKING. NON INST SUBSCRIBED WHOOPING 150 TIMES SO WILL SEE HUGE LISTING.PREMIUM GOING UP EACH DAY
At the offer price of Rs 170 – 185, the stock discounts its FY07 consolidated earnings (based on the post-issue capital) by 15-17x. Peers like Tantia Construction are trading at P/E multiples of 14.4x, Subhash Projects (P/E: 18.6x) and MSK Projects (P/E: 10.7x). With the government focusing on upgrading infrastructure, enormous opportunities will emerge in this sector. The company boasts long-term visibility in revenues and earnings on the back of a robust Rs 300 crore order book. We recommend subscription to the issue.