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Review By Dilip Davda on September 28, 2016
Shashijit Infraprojects Ltd (SIL) is engaged in industrial and infrastructure contracting business. SIL’s scope of work includes civil construction for industrial and residential projects, power plants, ETP plants, Power service stations etc.
To part finance purchase of machinery, scaffolding equipments, repayment of loan and working capital needs, the company is coming out with a maiden IPO of 2328000 equity share of Rs. 10 each at fixed price of Rs. 15 per share to mobilize Rs. 3.49 crore. Issue opens for subscription on 30.09.16 and will close on 06.10.16. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd. Bigshare Services Pvt Ltd is the registrar to the issue. It issued equity shares at par from inception till 2010 and then issued bonus in the ratio of 120 for 1 in August 2016. Post issue its current paid up equity capital of Rs. 6.29 crore will stand enhanced to Rs. 8.62 crore.
On performance front, for last four fiscals, the company has reported turnover/net profits of Rs. 47.05 cr./ Rs. 1.58 cr. (FY13), Rs. 47.68 cr. / Rs. 1.73 cr. (FY14), Rs. 29.37 cr. / Rs. 0.69 cr. (FY15) and Rs. 24.31 cr. / Rs. 0.97 cr. (FY16). Thus it has shown inconsistency in its earnings. However, if we attribute latest earnings on fully diluted equity post IPO then asking price is at a P/E of 13 plus and at a P/BV of 1.3 plus. Although asking price is below peers, its inconsistent performance in the major concern.
On merchant banker’s front, this is the 30th mandate and its past mandates have shown mixed trends.
Conclusion: Inconsistency in performance raises concern. However, risk savvy cash surplus investors may consider long term investment as infra sector is set for a big push ahead.
Review By Dilip Davda on September 28, 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 Shashijit Infraprojects Ltd offers an early investment opportunity in Shashijit Infraprojects Ltd. A stock market investor can buy Shashijit Infraprojects IPO shares by applying in IPO before Shashijit Infraprojects Ltd shares get listed at the stock exchanges. An investor could invest in Shashijit Infraprojects IPO for short term listing gain or a long term.
Read the Shashijit Infraprojects IPO recommendations by the leading analyst and leading stock brokers.
Shashijit Infraprojects IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Shashijit Infraprojects IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Shashijit Infraprojects IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Shashijit Infraprojects IPO.
The Shashijit Infraprojects IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Shashijit Infraprojects IPO allotment status to check.
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