June 29, 2012 - July 4, 2012

VKS Projects IPO Review & Recommendations

Dilip Davda recommend to "Avoid" the IPO.

VKS Projects IPO Review Summary from brokers and analysts

Review By	Apply	May Apply	Neutral	Avoid	Not Rated
Count	0	0	0	1	0
%	0.00	0.00	0.00	100.00	0.00

VKS Projects IPO Analysis By Brokers/Analysts

Reviewer	Recommendation	Past Reviews
Dilip Davda	Avoid

VKS Projects IPO Review by Dilip Davda (Avoid)

[Dilip Davda]

On performance front, for last two fiscals the company reported Total turnover/ net profit of Rs 60.25 crore/3.16 crore (2010-11) and Rs. 30.24 crore/Rs. 2.00 crore (2009-10) respectively. For the nine months ended 31.12.2011 it has earned net profit of Rs. 5.63 crore on a turnover of Rs. 97.55 crore. In December 2010 it issued bonus shares in the ratio of 4 shares for every 1 share held. Last three fiscal's average EPS stands at Rs. 8.49 and for nine month period at Rs. 7.03 and NAV of Rs. 23.09 per share. These EPS gets diluted on enhanced equity post this issue and thus issue looks fully priced. BRLM's track record is poor. Lower IPO grading also makes it a risky bet, hence avoid.

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