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Review By Dilip Davda on September 17, 2017
Cadsys (India) Ltd. (CIL) is a domain-focused GIS and engineering business technology service provider headquartered in Hyderabad, Telangana, India, with presence in the United States. CIL is primarily engaged in providing IT enabled services for geospatial, field engineering survey, software development and engineering design services in the domains like, telecom, CATV, oil & gas, electricity and other utilities. It leverages a differentiated business model through investments in pre-fabricated software components and frameworks to build enduring value for customers. It has expanded service portfolio with strategic acquisitions to emerge as a well-balanced player in the IT services segment. CIL’s clients include government departments and companies in telecom, power and other utility sectors.
To part finance its pre-payment/repayment of loans and general corpus fund needs, CIL is coming out with a maiden IPO of 2100000 equity share of Rs. 10 each at a fixed price of Rs. 70 per share to mobilize Rs. 14.70 crore. Issue opens for subscription on 21.09.17 and will close on 25.09.17. 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 Saffron Capital Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Issue constitutes 27.99% of fully diluted post issue paid up equity capital of the company. Since inception till 2002 it issued all equity at par and issued fresh equity at a price of Rs. 50 per share in March 2012. It has also issued bonus shares in the ratio of 4 for 1 in November 2016. Post issue its current paid up equity capital of Rs. 5.40 crore will stand enhanced to Rs. 7.50 crore.
On performance front, CIL has posted turnover/net profits of Rs. 21.06 cr. / Rs. 2.97 cr. (FY14), Rs. 24.41 cr. / Rs. 4.68 cr. (FY15), Rs. 31.99 cr. / Rs. 5.52 cr. (FY16) and Rs. 43.64 cr. / Rs. 10.95 cr. (FY17). For last three fiscals, on consolidated basis it has posted an average EPS of Rs.34.38 and average RoNW of 35.20%. Issue is priced at a P/BV of 1.31.If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of 4.8 that augurs well. Issue is priced reasonably and its track record makes it an attractive bet.
On merchant banker’s front, this is the first mandate from its stableHence no track records are available.
Conclusion: Considering reasonably priced issue, Investment for short to long term may be considered.
Review By Dilip Davda on September 17, 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 Cadsys (India) Ltd offers an early investment opportunity in Cadsys (India) Ltd. A stock market investor can buy Cadsys India IPO shares by applying in IPO before Cadsys (India) Ltd shares get listed at the stock exchanges. An investor could invest in Cadsys India IPO for short term listing gain or a long term.
Read the Cadsys India IPO recommendations by the leading analyst and leading stock brokers.
Cadsys India IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Cadsys India IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Cadsys India IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Cadsys India IPO.
The Cadsys India IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Cadsys India IPO allotment status to check.
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