Monday, December 26, 2016

IPO stock review : H P L electric & Power has given shock

The company came public in the last week of Sept 2016 at Rs 202.

Sure to get electric shock if you invest in the IPO, this is what we wrote.


The company, post IPO will have equity of Rs 48.20 cr. For FY 17 the likely EPS is around Rs 8 on the expanded capital. The offer is made at 26 PE which is very expensive. More importantly, the money raised from the IPO will go towards reduction of debt / working capital requirements. There won’t be any capacity addition.

AVOID INVESTMENT IN THE IPO.

The stock is now trading at Rs 96.

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