Supreme Engineering Ltd IPO Message Board (Page 2)

I think all investors (both hni and retail)interested in sme ipo money is locked in dangee dums ipo that is the reason for lacklustre participation in fresh issues!!

At 2 pm
Still struggle to sail through. HNI 57% RETAIL 54% TOTAL 52%

I was just seeing the IPO Note of Supreme wherein it has compared itself with Mishra Dhatu Nigam Ltd.

As per note, Midhani is having PE Ratio of 20 whereas Supreme is having PE Ratio of 10.
But pre dilution PE is not comparable and as per Dawda jee, post dilution PE Ratio for Supreme is 17.

You still might be thinking that even at 17 PE, Supreme is cheaper than Midhani at 20 PE.

But there is twist, comparing 2 similar companies on the basis plain vanilla PE is greatest fallacy. To make apple to apple comparison, there is concept of adjusted PE Ratio which takes into account debt and cash position of comparable companies.

In this instant case the Net Debt of Midhani is -90 cr, because it's debt is 90 cr whereas cash and cash equivalent is ~180 cr. whereas Net Debt of Supreme is 76 crore (Debt of Rs 81 cr- Cash of Rs. 5 cr.

Accordingly, adjusted PE Ratio after taking into debt and cash for Midhani is 21 and for Supreme is 34.

Hence, Supreme is 1.50 times costlier than Midhani.

Kedia ji ka gaana yaad hai na?
EPS hai jhuthi, Cash flow hai sacha. Loan jitna kam ho utna hi achha. Byaj na baja de band company ka, Ye market usi ki------

2nd thing mentioned in the note is that the company is having land bank of such and such acre and it is in the process of monetizing the same for reducing debt. This is also a trap. If the company and promoters are gung ho about the value and marketability of the land parcel, first they should have reduced the debt by monetising the land bank and then should have come for IPO at better valuation. If the promoters are giving the bet of Land parcel and development of the same to investors, then we should compare this company with real estate company, rather than with Mishra Dhatu Nigam.

Disclaimer:
(1) Except calculating adjusted PE ratio, for other information sourced from www.chittorgarh and Money control
(2) Listing gain or loss in IPO, particulaly SME IPO are not dependent on fundamentals.

True. We cant compare it with midahani. Supreme doesnt have scale midhani have with zero debt. We have to discount the company rather then just comparing the pe with other company

Apply for long term. It is not short term listing gain ipo.

huge debt of 80 crore.
expensive at 17 p.e.
MIodhani is cheaper

A big Avoid

Variation in cash flow of company between DRHP dated 19.02.2018 and RHP dated 11.08.2018
Intial DRHP DATED 19.02.2018 HAVE cash flow at page 21 (https://www.nseindia.com/emerge/corporates/content/SEL_DRHP.pdf)
PARTICULARS====31.03.2017=31.03.2016=31.03.2015=31.03.2014=31.03.2013
CF OPERATION===724.44=====1,002.30===(1,113.26)===(893.11)===1,979.89
RHP FINAL DATED 11.08.2018 HAVE cashflow at page 21 (https://www.nseindia.com/emerge/live_market/content/live_watch/ipo/sme_ipo.htm)
PARTICULARS====31.03.2017=31.03.2016=31.03.2015=31.03.2014
CF OPERATION===766.13======991.84======(1335.63)=====(1023.93)

strange!!!

Good job...

Must apply. Very good ipo for long term prospective.

Sub. data
NII-.0.32
RII-0.11
TOTAL-0.20

Highly leverage issue. P.E brought at 17. Mishra Dhatu is at P.E of 19 with no debt & that also main board IPO. SME Ipo should be priced half the main board IPO P.E. Risky to apply for immediate return.Think wisely .

Sub. data
NII-.0.28
RII-0.05
TOTAL-0.16

GMP and view

Why is there very big difference in issue price range ? 27-32 ??

business seems fine ...

company business is ok .
It is just Lead manager is not good.

If subscription remains high may go for 1-2 aplication

in issues LM is market maker of issue. It is therefore very important therefore. In sarveshwar foods Asit c Mehta has been LM and did not care to purchase share. good LM will always care of price that's why

Hi IPO ANALYSIS,
Can u plz. tell me how can I apply in some ipo,I've account in Motilal
Thanks

It's through bank login and not through broker

A huge gap of 20% in lower and upper price band. Generally there is such gap in sme IPOs.

LM is just doing its professional duty ...'

Promoter is doing business.

lM is also market maker so it's just not duty. LM is most important therefore

Not necessarily going with track record of LM..... Company fundamental is not good so not applying.

I ALWAYS PREFER THE FUNDAMENTAL OF COMPANY ... NOT LM.

LM IS NOT THE CO BUSINESS KI LONG TERM ME THIK KAR DEGA...

koi bhi merchant banker .... uske hath me company ke fundamental thodi hote hai.

Well Said Hari IPo. It is total avoid.
Aniketiaf :- Why they have not sold the land before & reduce their Debt. Before the IPO every body will say I will do this & that and will reduce the debt in the future. But the company should have performed better & then should have come with issue.Only last year profit has been doubled.Why Key note name is not there as the Lead Manager as it was mentioned in the DRHP earlier. Because investors know the result of Sarveshwar issue brought by them.
Investors please invest your money wisely.

It is second sarveshwar food type position i.e equity is 65 lack and debt is Rs. 81 crore and profit is Rs. 4 crore. If you want to see sarveshwar food show again then apply otherwise big avoid