TeamLease Services Ltd IPO Message Board (Page 22)

Vulnerability to government regulations: The company is highly vulnerable to government regulations with the staffing services industry handcuffed by complex labour laws. "Changes in law or government regulations may result in prohibition or restriction of certain types of employment services that TSL is permitted to offer. The imposition of new or additional licensing or tax requirements could also reduce its revenues and earnings," Sharekhan said.

Cyclicality of industry: The staffing industry in India is highly exposed to the boom and bust cycles of the economy or a particular sector. "An economic downturn in a region or sector in which it operates may adversely affect its operations in that region or sector," the brokerage said.

Long-list of sub-judice issues: There are outstanding legal proceedings against the company, some of its subsidiaries, individual promoters and directors, which are incidental to its business and operations. The cases are pending at different levels of adjudication before courts, tribunals and appellate tribunals.

Highly competitive industry: Low entry barriers in the industry means the competition threat to the company is very high, said Sharekhan. "Price competition in the staffing industry is intense, particularly for qualified industrial personnel," the brokerage said.

Acquisition target has not been identified: TSL proposes to utilise Rs 25 crore from its net proceeds towards undertaking an acquisition. However, on the date of filing its red herring prospectus, the company had not entered any definitive agreements towards such acquisitions or strategic initiatives.

Too much dependence on top 10 clients: The company is too dependent on its top five or top ten clients, according to Sharekhan. During the financial year ended at March 31, 2015, TSL derived 17.64 per cent of its revenues from its top five clients and 24.56% of its total revenues from its top ten clients. Any downsizing by these clients may reduce their spending on the services provided by TSL, it said.

"Loss of any one or more of these clients, could have a material adverse effect on its business, profits and results of operations," it added.

India is second largest labour market of the world and has tremendous growth potential in terms of flexi-staffing. TeamLease may enjoy the position of front runner and leader in the market but they still require to do lot of work in improving their margins.

At a lower price band of Rs.785 per share, Company’s PE ratio comes at whopping 49X of the FY 2015 earnings, which seems significantly expensive in comparison to the global peers that are trading at maximum PE of 33X.

Based on the above calculation and profits margins of the company, the valuation of the company seems highly priced and I would suggest avoiding TeamLease Services IPO.

However, investment can be made later once the company manages to improve its margins and shows consistent growth but currently TeamLease Services IPO may not be good buy for retail investors.

Teamlease Service ipo will get list at premium due to its response

I have applied 10 application
Hope to get atleast 1 out 10.

Premium Rs. 225-232

But remember its just a listing call as such is now a risky bet.

Retail investors may give a miss to the initial public offering ( IPO) of TeamLease, which opens on February 2. It is seeking valuation, which is at par with global peers, but does not reflect its lower margin profile and limited pricing power.

Financials: The company''s revenue grew at annualised rate of 30% in the past four years to Rs 2,018 crore in FY15. In the first half of FY16, revenue grew 25% to Rs 1,215 crore, while profit declined 36% to Rs 10.97 crore. The operating margin has been improving over the past five years. It was 1.8% in FY15.

Industry & Objectives: The flexistaffing industry is expected to grow at an annualised rate of 20-25% between 2014 and 2019. The company''s margins are expected to improve as it enters the IT, healthcare and hospitality segments.

Risks: Temporary workforce demand hinges on the pace of the economic activity. In addition, the Indian industry is largely unorganised, with small and medium players accounting for nearly 70-80% of the overall industry.

Valuation: At the higher end of Rs 785-850 price band, it is trading 49X (on diluted equity) of the FY15 earnings, which is significantly expensive to the global peers that are trading around 11-33 times, according to Bloomberg. Based on Enterprise value to sales ratio, company is asking for comparable valuation to global peers while its margins are inferior.

Some shares always trade @ high valuations (@ high PE)
&
Some shares always trade @ low valuations (@ low PE)

Hence Good luck to who apply for TSL

History Create kardi is IPO ne to bhai..!!! anybody tell me over 65X subscription kis IPO ka hua tha ?

VRL has ovrsubscribed at 75x

Means Great Listing happens here also like VRL..!!!

M P Jain sahab ,looking at the subscription figures do you still think it will list in discount ? Good QIB support and strong anchor book raise hopes for good listing but allotments will be very low.lets hope for the best

QIB : 26.96
NII : 185.23
RII : 10.33
EM :0.47

TOTAL 65.97

From where u got these numbers

Pity amazing...great people who advising to avoid this over price ipo to those who was asking advises since last few days has openly saying i have applied.....if so then why he telling his followers to avoid........

Boarders u all are free to follow anyone. I put my views in a frank and without bias.

Pretty amazing that fools like staripo are more fond of commenting on other people than realizing that when an idiot opens his gob he announces to the world that he is an idiot and a fool even when they were initially not aware of him being so. Such people are more into self appreciation, lack confidence and try to pull down others to show their superiority. He lives in a world of his own in which he thinks that others wont be able to know whats happening and he is the smartest one around. Poor him. People are otherwise laughing at his back. Can anyone tell me what disease am I talking about? staripo is suffering from it. Poor him. He needs help.

Recall, I asked '' how many times this IPO will be subscribed?? This is what I expected even in a weak market sentiment.
Only lucky punters will make money ??
my probability of allotment is negligible.

Qualified Institutional Buyers(QIBs)      25.33 Times

Non Institutional Investors       52.84 Times

Retail Individual Investors(RIIs)      3.24 Times

Employees       0.01 Times

Total Subscription 28.64 Times


Seems the Response in this Tad Dull market is Good and There seems to be gr8 hope among the investors for Listing Gains looking at the times the same is subscribed in QIB and NII segment

Current Issue at NSE

When entire world is so much interested and enthusiastic about Team lease shares, why his employees are not at all interested in their own company?
Mostly they are aware of some inside information

Pls Inform PCL & TEAM LEASE PRIMIUM ?

As on 04-Feb-2016 17:00:22 IST

TeamLease Services Limited - Graphical display of bids received *

(* indicates bids position and not necessarily the subscription to the issue)

Total Issue Size      28,92,063
Total Bids Received      19,06,41,555
Total Bids Received at Cut-off Price      43,88,145
No. of times issue is subscribed      65.92

5 lot applied

MP JAIN TO GYAOOOOOOOOOOOO.

Those who followed m gupta and his supporter great RKS....must regretting....for avoiding.....

Very true Wizard as u dumbass can not understand except how to put anyone down.

You win... Wizard Bro....1 no.

I can understand the euphoria abt this company on Retail investor but i really sometime do not understand why QIB go for such high valuation....I hope and pray it list at good premium last thing we want retail investor capital destroy..... BEST OF LUCK TO ALL WHO APPLIED..... i did not apply BTW i got full allotment in PCL 15560 shares from 8 account mix of HNI and RII......

15k shares
Isn''t that risky Septa sir

yes it is sizeable investment but in context with my investment is still okay size I actual wanted to apply more then thought if it list at discount as general market thinks I can pick more my horizons is long. Short term may take a dip but long term I think I will get better return then FD rates.

Hey recd msg fr linkintime of refund of pcl

Why pinkyji not taken part plz come ....

Why pinkyji not taken part plz come ....

Mp jain hi pinky jain hai.

Atul is correct...i was feeling so too from 3/4 days.....mrs.pinky jain..m p jain..