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Review By Dilip Davda on September 24, 2015
Bella Casa Fashion & Retail Ltd (BCFRL) is engaged in the business of manufacturing of Bed sheets, Quilts, home furnishing textile items, printed/dyed furnishing fabrics and garments. The production unit of the company is situated at E-102, 103, EPIP, Sitapura Industrial Area, Jaipur, Rajasthan. This Industrial park has been developed by Rajasthan State Industrial development and Investment Corporation (RIICO) with the efforts mooted by the Government to provide assistance to the Export oriented units.
To meet its working capital requirements, BCFRL is coming out with a maiden IPO of 2450000 equity shares of Rs. 10 each at a fixed price of Rs. 14 per share to mobilize Rs. 3.43 crore. Issue opens for subscription on 28.09.15 and will close on 30.09.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue is lead managed by Hem Securities Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. Its current paid up equity capital of Rs. 6.77 crore will stand enhanced to Rs. 9.22 crore post issue. Since inception till date it has issued all equity at par and a bonus in the ratio of 23 for 10 in July 2015.
On performance front, for last three fiscals, it has posted an average EPS of Rs. 0.93. Its RONW ratio is poor at 9.42% for the said periods. In fact it’s EPS and RONW is at the low of Rs. 0.57 per share and 5.39% for FY15. For the year 2014-15, BCFRL’s revenue comprises of 91.63 % from the Domestic market and the rest from export of its products manufactured. The company is exporting our Products to Middle East Countries where the demand for company’s products arequite favorable as there are sizeable expatriates living in these countries. Having posted steady growth in top and bottom lines between FY2011 to FY 2014, it suffered a setback for FY 2015. Its turnover grew from Rs. 43.32 crore (FY11) to Rs. 83.76 crore (FY14) and net profit from Rs. 0.78 crorel (FY11) to Rs. 0.88 crore (FY14). For FY15 it has earned net profit of Rs. 0.38 crore on a turnover of Rs. 78.99 crore. If we attribute latest earnings on fully diluted equity post IPO, then EPS stands at Rs. 0.41 translating into asking price at a P/E of 34 plus making it a costly bet.
On merchant banker’s front, this is the 18th SME IPO from its stable and earlier mandates have shown average performances.
Risk avers well informed investors may consider this'High Risk-Low Return' bet.
Review By Dilip Davda on September 24, 2015
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Bella Casa Fashion & Retail Limited offers an early investment opportunity in Bella Casa Fashion & Retail Limited. A stock market investor can buy Bella Casa Fashion IPO shares by applying in IPO before Bella Casa Fashion & Retail Limited shares get listed at the stock exchanges. An investor could invest in Bella Casa Fashion IPO for short term listing gain or a long term.
Read the Bella Casa Fashion IPO recommendations by the leading analyst and leading stock brokers.
Bella Casa Fashion IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Bella Casa Fashion IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Bella Casa Fashion IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Bella Casa Fashion IPO.
The Bella Casa Fashion IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Bella Casa Fashion IPO allotment status to check.
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