1.
Positive movement in oil marketing companies, aviation stocks while weakness in
capital goods, automobile stocks
2.
Crude oil looks further weak
Daily
recommendation
Buy
HPCL (304.30) with Stop Loss Rs 301 target Rs 306, 308
Sell
L & T (1163.55) with stop loss Rs 1175 target Rs 1155, 1145
Sell
Mah and Mah (636.65) with Stop
loss Rs 640 target Rs 628, 625
Commodity
& Forex: Silver looks weak in commodity market
Good
LuckCol
Ajay
www.astromoneyguru.com,
www.futurebazaronline.com
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-09414056705, 09887056704 Land line 0141-2568292, 4037560
Today Listing
PlasteneIndia
Ltd. IPO Subscribed
No of Shares
Offered
9-5-2012
10-5-2012
11-5-2012
14-5-2012
15-5-2012
QIB
46,00,000
0.00
0.00
0.00
0.00
0.00
HNI
13,80,000
0.11
1.60
1.65
1.76
1.76
Retail
32,20,000
0.00
0.00
0.03
0.05
0.05
Employee
55,290
0.00
0.39
0.70
0.75
0.75
Total
92,55,290
0.02
0.24
0.26
0.28
0.29
Speciality
Restaurant IPO Subscribed
No of Shares
Offered
16-5-2012
17-5-2012
QIB
4108795
0.00
0.00
HNI
1760912
0.00
0.00
Retail
4108796
0.01
0.05
Total
9978503
0.01
0.02
Specialty
Restaurant Ltd. IPO Opens on May 16, & Closes on 18 May 2012.
Price
Band fixed at Rs.146 to 155.
The company, run by Anjan Chatterjee and Suchhanda
Chatterjee, has set a price band of Rs 146-155 a piece for its 11.74 million
share issue. At the higher end of the price band it aims to raise Rs 182 crore.
It plans to use the funds raised to expand its restaurant footprint,
develop food plazas and repay a term loan, according to its draft red herring
prospectus. It currently runs 69 restaurants and 13 confectionary stores across
22 cities in India.
Mainland China,
its biggest brand, accounts for 60.3% of its revenues, followed by Oh! Calcutta at 12.3%.
Mainland China
and Oh! Calcutta
is quite popular. But will it manage to tickle the taste buds of investors?
Kotak Mahindra Capital, the book running lead manager for the Specialty
Restaurants issue and the management are betting on the consumption boom in India
to continue to drive the company's sales going ahead. Speciality Restaurants
net profit increased to Rs 15.63 crore in financial year 2011, from Rs 3.12
crore in FY2007 at a compounded rate of 49.6%. Its revenue in the same period
was up 35.1% CAGR to Rs 173 crore. For the nine-months ended December 2011, it
reported a net profit of Rs 15.34 crore, while revenue was Rs 149.7 crore.
Anjan Chatterjee, who is Speciality Restaurants MD, says the focus will remain
on expanding Mainland China.
The plan is to scale Mainland China
to 100 restaurants by 2016. It also plans to expand Sigree
to a formidable Indian fine dining brand over next few years. The company also
operates brands like Fire & Grill, Haka, Just Biryani, Kibbeh, Machaan and confectionary stores Sweet Bengal across India. Speciality
Restaurants is also setting up food courts in Kolkata and Pune,
which will house most of its brands under one roof.
Specialty Restaurant: Other
side of IPO
The cost to the promoters is just 18 paisa a share,
But has offered shares in price band of Rs146 to Rs155
The company has issued huge bonus twice before the IPO
The company has allotted preferential shares to investors at
Rs70 to Rs87
The company is doing well at present: rapid growth in RONW
Considering PE multiple of 22 and P/BV of 4.09, the issue is
costly but
There is a possibility of high risk-high return
In last two years, merchant banker has managed 21 IPOs
Out of that 18 are quoted as discount rate
The average
cost to the main promoters of the company is just 18 paisa a share, however,
the offer price is fixed at Rs146 to Rs155. Before filing DRHP before SEBI, the
company had issued bonus in ratio of 1:18 in March 2011 and 1:2 in 2005 In 2005, the company had issued 50 lakh
shares to investor SAIF and 17 lakh shares to Gliks on preferential basis at rate of Rs70 and Rs87
respectively, which is at 40-50% discount from the offer price. On March 31, 2012 the companys
net worth stood at Rs11.26 crore, against that the
company plans to use Rs14.67 crore out of net
proceeds for setting up new restaurants and food plaza, so the net worth will
go down. Therefore, the offer price can be considered high. Financials:
In 2010-11, the company registered net profit of Rs16 crore
on turnover of Rs175 crore. In the first nine months
of FY2011-12, the company registered net profit of Rs15 crore
on turnover of Rs152 crore. On annual basis, the company
is expected to registered net profit of Rs20 crore on
turnover of Rs175 crore.
Remarks: The Company is offering PE of 22 after increased
capital of Rs46.95 crore following offering shares in
high price band of Rs155 a share. The price to book value is 4.07. However, the
company RONW is in range of 11 to 17%. Considering all these aspects, the offer
price is quite high. There is no listed peer in the sector, the comparison is
not possible. This IPO falls in High Risk- High Return category.
Disclaimer: Investing in any equity is risky. Our
recommendations are based on reliable & authenticated sources believed to be
true & correct, and also is technical analysis based on & conceived from
charts. Investors should take their own decisions. We assume no responsibility for
any transactions undertaken by them. The author won't be liable or responsible for
any legal or financial losses made by anybody. Disclosures: At the time of writing this article, author, his clients
& dependent family members may have positions in the stocks mentioned above.
The author, his firm, his clients or any of his dependent family members may make
purchases or sale of the securities mentioned in website. Author may have positions
in above stocks so have vested interest obviously in their going up or down as the
case may be.
