Here are the brokerage Reviews & Recommendation of Infibeam IPO
IIFL Analysts Wrote,
Infibeam provides domestic e-commerce products and solutions in India. Unlike other e-commerce startups, Infibeam has opted to raise Rs.450cr directly from the primary market. Notably, there were some instances in recent times, wherein valuations of e-commerce companies were either marked down in the unlisted space or have corrected in the global listed space. However, Infibeam has not compromised on its valuations. Furthermore, the exit of two investment bankers just before RHP calls for concerns. It will be a challenge for Infibeam to compete with the existing e-commerce giants. Furthermore, to raise additional funds in the future, the company may go in for equity dilution or increase its debt. This can be a cause of concern for investors. In addition, future cash flow generated from the high-margin service business could be utilized by the e-commerce business. Post listing Market Cap of ~Rs 2300cr appears expensive based on annualized FY16 sales of ~Rs 350cr, PAT of ~Rs 13cr.
Reliance Capital Analyst Apurva Prasad Wrote,
At the upper price-band, Infibeam is valued at EV/Revenue of 6.2x (FY15 revenue). Average of peers including global e-tail (Amazon / Alibaba / eBay/ Rakuten), e-commerce solution providers (Shopify, GoDaddy) and domestic Internet peers (InfoEdge, Just
Dial) are at ~4x EV/revenue.
Angel Broking Analysts Amarjeet S Maurya and Milan Desai Wrote,
Infibeam’s E-retail business has a similar model as Flipkart and Snapdeal, but is significantly smaller than the two dominant players which have strong PE backup. Its other business, i.e. BaB, in revenue terms is also smaller (`67cr FY2015) compared to global players like Shopify.com (US$205mn CY2015). Moreover, even if BaB business does gain dominant position in India, it is insufficient to justify the valuation. Considering this, we believe that the EV/Sales multiple of 4.3x-5.2x demanded by the company is steep. Given that the
company is still evolving, has an unproven profitability track record and the expensive valuation, we have a Neutral recommendation on the issue.
