MEP Infrastructure Developers IPO Reviews and Recommendations by Various Brokerages / Research Analysts are as Follows,
EquityMaster has the following Recommendation,
The company has been loss making over the last 5-6 years. Even the net worth has been negative for the last 2-3 years. As such, assessing valuations based on P/E or P/BV multiples is redundant. Further, since there are no listed entities that are into similar business as MEP Infra, gauging valuation parameters on comparable basis is also difficult.
Nonetheless, we would like to highlight one point worth noting. In May 2014 promoters allotted themselves 11.4 m shares at an issue price of Rs 21.75 per share. And within a span of one year they are coming out with an IPO priced at 63-65 per share - an appreciation of 3 times; despite the fact that the financial performance has been deteriorating. Taking into consideration the poor financial history and a high risk business model that is plagued with uncertainties, we recommend investors to AVOID the IPO.
ICICI Direct has the following Review,
At upper price of | 65, stock is valued at 12.4x FY15E EV/EBITDA (7MFY15 EBITDA has been annualised), which appears to be rich considering its weak fundamentals. In fact, the leading road players such as IRB and ITNL trade at 9.3x and 11.0x FY15E EV/EBITDA, respectively. Hence, we recommend investors to avoid subscribing to MEP’s IPO.
