Monday, August 31, 2015

IPO ANALYSIS: SADBHAV INFRASTRUCTURE PROJECT LIMITED : LOOT MAAR CATEGORY - AVOID

   

ISSUE OPENS / CLOSES ON

31-08 /02-09-2015
ISSUE SIZE
RS 425 CR PLUS OFS OF 32,35, 762 EQUITY SHARES
PRICE BAND
RS 100-103
FACE VALUE
RS 10
BUSINESS
BOT OPERATORS

PROMOTERS

 SADBHAV ENGINEERING LIMITED AND VISHNUBHAI M. PATEL


LISTING
BSE, NSE





BRLM
KOTAK, INGA CAPITAL, EDELWEISS, ICICI SECURITIES, MACQUARIE

REGISTRAR

INTIME

IPO GRADE
NA































BUSINESS:

The company is a road BOT operator specialising in the development, operation and maintenance of highways, roads and related projects. The company is a subsidiary of Sadbhav Engineering Limited which again a BOT operator.


SIPL has project portfolio consisting of ten BOT projects of which six road projects are fully operational, one is the partially operational border check posts and the remaining three projects are in various stages of development. Nine of the ten BOT projects are toll projects, while the remaining one is an annuity project. The operational projects cover approximately 1,531.16 lane kms and the projects under development cover approximately 1,061.48 lane kms.


RISKS :

1.   Company has incurred loss in 2014-15 and defaulted to ICICI / IDBI banks.
2.   SIPL depends heavily on promoter group / company for business procurement.
3.   A portion IPO proceeds will be utilised for repayment of past loans.
4.   Road and highway projects are dependent on the procurement of unencumbered contiguous land. As of now it is very difficult procure the same.
5.   Company derives 90 plus percentage of its revenue from toll collection. Some states have   restrained from collecting the toll because of poor quality works / poor maintenance.
6.   There were delays in payment of statutory dues in the past.
7.    Promoters have already pledged the equity shares with the lenders.

                 8.     The average cost of acquisition of Equity Shares Promoter, is ₹19.10 and by Vishnubhai M. Patel is ₹0.91.





FINANCIALS:
                             (RS IN CRORES)

31-03-2015

31-03-2014

31-03-2013
TOTAL REVENUE

528

393

315
NET PROFIT

302

146

 46
EPS (Rs)

(9.74)

(5.05)

(1.48)
SHARE CAPITAL

310.96

28.25

28.25
RONW (%)
(7.25)
0.10
1.4





VALUATIONS AND RECOMMENDATIONS


Loss making, debt ridden, unprofessionally managed company. The IPO is being made to give relief to early investors, lenders who are fed up with the group. BRLMs / early investors / promoters are trying to shit the loss from themselves to gullible public. Loot Maar category IPO.

AVOID THE IPO.

TODAY'S TIPS FOR TRADING

                            


                                   BUY CALL                    (AMOUNT IN RUPEES)


COMPANY
BUY AT
STOP LOSS
TARGET
RIL
870
858
884-888




ICICI BANK
284
279
292-295





INFY

1110

1090

1131-40




AXIS BANK
509
501
519-522




SBI
248
244
256-258


Sunday, August 30, 2015

RAJAN HINTS AT RATE CUT

The most admirable and efficient Central banker the in  world - Raghuram Rajan of India says, inflation has come down to the comfort zone quicker than expected and he is keeping a watch on data to see how much room is there for further easing of the monetary policy.

And RBI is likely to cut rates in the month of September.

NSE EXPELLS FIN BRAINS SECURITIES

NSE has expelled Fin Brains Securities  (India) Ltd with effect from 28-08-2015.

Saturday, August 29, 2015

PRABHAT DAIRY GETS 15% SUBSCRIPTION ON DAY 1

Prabhat Dairy IPO has received 15% subscription on day 1. The retail segment has been subscribed just 1 percent.

Friday, August 28, 2015

IPO ANALYSIS: SADBHAV INFRASTRUCTURE PROJECT LIMITED - AVOID

      DETAILED ANALYSIS POSTED ON 31-08-2015.


ISSUE OPENS / CLOSES ON

31-08 /02-09-2015
ISSUE SIZE
RS 425 CR PLUS OFS OF 32,35, 762 EQUITY SHARES
PRICE BAND
RS 100-103
FACE VALUE
RS 10
BUSINESS
BOT OPERATORS

PROMOTERS

 SADBHAV ENGINEERING LIMITED AND VISHNUBHAI M. PATEL


LISTING
BSE, NSE





BRLM
KOTAK, INGA CAPITAL, EDELWEISS, ICICI SECURITIES, MACQUARIE

REGISTRAR

INTIME

IPO GRADE
NA



















BSE CHANGES CIRCUIT FILTER FOR 14 STOCKS

BSE has changed circuit filter for the following stocks with effect from August 28, 2015.

Sr. No.
Scrip Code
Scrip Name
Circuit Filter % Revised to
1
539276
Kaya Ltd
20
2
506113
Lifeline Drugs & Pharma Ltd
10
3
506615
Sunrise Asian Ltd
10
4
508998
Sterling International Enterprises Ltd
10
5
531502
Esaar India Ltd
10
6
532081
KSS Ltd
10
7
532614
Impex Ferro Tech Ltd
5
8
533896
Fervent Synergies Ltd
5
9
538180
Gold Line International Finvest Ltd
5
10
538961
Genus Paper & Boards Ltd
5
11
530771
KLG Capital Services Ltd
5
12
531521
Desh Rakshak Aushdhalaya Ltd
2
13
530967
Kyra Landscapes Ltd
2
14
530207
Brawn Biotech Ltd
2