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Review By Dilip Davda on March 16, 2017
Bohra Industries Ltd (BIL) is an ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified company engaged in manufacturing of Single Super Phosphate (SSP) both in powder and granulated forms. Its plant is located at Udaipur, Rajasthan. Its product is sold under the brand name “MAHALAXMI” in 17 states through direct and in-direct channels. BIL has signed MoUs with many giants for supply of SSP. Company has up the sleeve expansion plans for SSP from 120000 mtpa to 300000 mtpa and mulls diversification in the production of Triple Super Phosphate (TSP), Food grade Phosphoric Acid and Nitrogen Phosphorous and Potassium (NPK).
To part finance its purchase of equipments and machinery for expansion, working capital and general corpus fund needs, the company is coming out with a maiden IPO of 4572000 equity share of Rs. 10 each via book building route with a price band of Rs. 51-55 ( to mobilize around 25.14 crore at the upper price band). Issue opens for subscription on 23.03.17 and will close on 27.03.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. From 1996 to 2010 it issued all equity at par. In December 2016 it raised further equity at a price of Rs. 43 per share. Post issue its current paid up equity capital of Rs. 10.67 crore will stand enhanced to Rs. 15.24 crore.
On performance front, it has posted turnover/net profits of Rs. 75.20 cr. / Rs. 5.52 cr. (FY13), Rs. 90.46 cr. / Rs. 5.37 cr. (FY14), Rs. 96.32 cr. / Rs. 4.32 cr. (FY15) and Rs. 113.00 cr. / Rs. 4.51 cr. (FY16). Thus for last two fiscals despite growth in top line, its bottom line has declined. For the first half of the current fiscal it has earned net profit of Rs. 2.62 crore on a turnover of Rs. 50.14 crore. If we annualize latest earnings and attribute it to fully diluted equity post issue then asking price is at a P/E of around 16 plus and at a P/BV of 1.1 plus making it fully priced offer.
On merchant banker’s front, this is the 40th mandate from its stable and past mandates have shown mixed trends. However, last 10 issues have shown positive trends on listing dates.
Conclusion: Issue appears to be fully priced hence investors may invest at their own discretion with a long term outlook.
Review By Dilip Davda on March 16, 2017
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 Bohra Industries Limited offers an early investment opportunity in Bohra Industries Limited. A stock market investor can buy Bohra Industries IPO shares by applying in IPO before Bohra Industries Limited shares get listed at the stock exchanges. An investor could invest in Bohra Industries IPO for short term listing gain or a long term.
Read the Bohra Industries IPO recommendations by the leading analyst and leading stock brokers.
Bohra Industries IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Bohra Industries IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Bohra Industries IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Bohra Industries IPO.
The Bohra Industries IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Bohra Industries IPO allotment status to check.
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