Angel Broking Analyst Bhavin Patadia has the following Recommendation on
Monte Carlo Fashions IPO,
We recommend Subscribe to the issue at the lower end of the price band from a two-year perspective. From a one-year perspective, we see limited upside potential as valuations seem to be fair.
SMC Brokerage has the following Views
The company has strong brand name and diversified products in its kitty. However its reliance on its third party suppliers may have a material adverse effect on its results of operations, if it fails to obtain quality products on a timely basis or in sufficient quantity. Even though the IPO is priced at higher valuation but strong balance sheet and business modal holds great potential. So, those investors who have high risk appetite can opt this issue.
Ajcon Global Analyst Akash Jain has the following recommendation on the IPO of Monte Carlo Fashions ,
At the upper band of the issue price, MCL is valued at 25x – FY14 Post issue EPS/share of Rs. 25.4/- at upper end of the price band. With due consideration to factors like a) 30 years old well established leading all season apparel brand which, b) strong back end with in – house design and manufacturing, c) long term relationships with third party manufacturers, d) nationwide sales and distribution network, e) positive operating cashflow, f) favourable capital structure with decent return ratios, g) buoyant secondary market conditions, we recommend “SUBSCRIBE” to the issue only for listing gains.
Emkay's Tejas Sheth has the following Recommendation,
On upper-end of price range, MFCL is asking for an immodest valuations but we believe it is not very expensive. Considering the growth opportunity, brand positioning and controlled working capital, we believe there is still marginal room for re-rating gains from the issuance price. We assign Subscribe rating to this IPO for modest listing gains of 15-20%.
Way2Wealth Analyst Nisha Harchekar is of the following view,
At the offer price bands, the issue is available at P/E of 24.8x-25.3x its FY14 EPS of Rs 25.4. With factors such as strong brand value & distribution network, its diversification in non woolen segments and healthy balance sheet along with the recent good performance of share price of other textile companies in the secondary market, we think it may attract investor interest. Hence we recommend Subscribe to this issue.
