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Review By Dilip Davda on December 29, 2016
Maheshwari Logistics Ltd (MLL) is engaged in providing logistics services, supplying of non-coking coal, manufacturing of kraft paper and trading in variety of papers. Thus the company has diverse business model that covers three sectors i.e. logistics, fuel and papers.
To part finance its working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 3996000 equity share of Rs. 10 each at a fixed price of Rs. 68 per share to mobilize Rs. 27.17 crore. Issue opens for subscription on 30.12.16 and will close on 06.01.2017. 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 managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. After initial issue at par, it issued further capital at a price ranging from Rs. 110 to Rs. 1968 and has also issued bonus in the ratio of 4 for 1 in March 2012 and 1 for 1 in December 2016. Post issue its current paid up equity capital of Rs. 10.80 crore will stand enhanced to Rs. 14.80 crore.
On performance front, it has posted turnover/net profits of Rs. 414.89 cr. / Rs. 5.17 cr. (FY14), Rs. 534.93 cr. / Rs. 5.84 cr. (FY15) and Rs.605.47 cr. / Rs. 6.92 cr. (FY16). For first half of the current fiscal it has posted net profit of Rs. 4.71 crore on a turnover of Rs. 334.81 cr. If we annualize these earnings and attribute on fully diluted equity post IPO, then asking price is at a P/E of 10 plus and a P/BV of around 1.2 that appears to be reasonable. The company has no listed peer to compare with.
On merchant banker’s front, this is the 33rd mandate from its stable and earlier mandates have shown mixed trends post listings.
Conclusion: Considering the future prospects of logistics, fuel and paper sectors, this issue may be considered for investment on medium to long term.
Review By Dilip Davda on December 29, 2016
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 Maheshwari Logistics Limited offers an early investment opportunity in Maheshwari Logistics Limited. A stock market investor can buy Maheshwari Logistics IPO shares by applying in IPO before Maheshwari Logistics Limited shares get listed at the stock exchanges. An investor could invest in Maheshwari Logistics IPO for short term listing gain or a long term.
Read the Maheshwari Logistics IPO recommendations by the leading analyst and leading stock brokers.
Maheshwari Logistics IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Maheshwari Logistics IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Maheshwari Logistics IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Maheshwari Logistics IPO.
The Maheshwari Logistics IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Maheshwari Logistics IPO allotment status to check.
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