Here are the Expert Reviews and Recommendations of Galaxy Surfactants Limited IPO.
HSBC's Views are as under,
Galaxy is the first company tapping the capital market from the surfactants segment. With descent financial performance and strong industry prospects, the company looks to be a good investment to bet upon for a long-term. At the price band of Rs 325-340, the stock is valued at 14.7x-15.4x, its FY10 earnings of Rs 22.12. Market volatility can impact the stock price in the short-term, however, with long established uphold in the surfactants business and a good association with global brands, we recommend the investors to subscribe to the issue with a long-term view.
KR Choksey's Recommendation on the IPO,
At Rs 325-340, the issue is priced around 15 PE of GSL’s FY 10 earnings (21x post issue share capital) and 14x its FY11E earnings. We believe, GSL is poised for strong growth considering its rich product profile, marquee clientele and overall growth in the home & personal care segment coupled with capacity expansion plans already in place. We recommend our investors to “SUBSCRIBE” the issue with a long term investment perspective.
SPA Sec's views are,
At the upper band of INR 340, the stock is available at a P/E multiple of 14.1x based on 9MFY11 annualized post-issue EPS of INR 24.1. Two-fold increase in manufacturing capacity aided by growth in personal care industry will contribute to the revenue growth from FY13. On comon with other entities, the offer at 14x for FY11 (annualized) seems ‘Expensive’
