Updater Services Limited IPO Message Board (Page 6)

IPO KI BARISH CHAL RAHI CHE....!!!⭐

POOR MARGIN & RATIOS.
REVENUE INCRESING, NET PROFIT DECREASING!!!

due to continue acquistion of company so net profit decreasing but you will get good return but at this moment buy some good scrip from secondary market nd on 5 yo 7 prct profit sell on diwaali 🌙

They are growing on the basis of acquisition and acquisition is most of the time done at premium by over paying.
The business doesn't have any moat and any player can give them tough competition and in few business SIS can enter. They are just supplying and managing manpower for low jobs where they can never have pricing power.
Even adjusted EBITDA is below 7%, here I am excluding acquisition adjustment.
They are asking very expensive valuation for no moat business with slim margin.

One more company rapidly growing on the basis of acquisition is Nazara technologies but they are in e-sports which is future of sports, gamified learning and likewise sectors and that's why they get premium valuation.

You can't treat everything equally and market gives valuation by seeing growth potential and future earning.

😵‍💫