Here are the Brokerage and Research Recommendations of
Olympic Cards LtdSMC has the following REcommendation,
Though the company was incorporated in the year 1961, till now it does not have its own trade mark, which is essential for any business. On the financial front, the company has been seeing negative cash flows since past few years. The company's total income for the year ended March 31, 2011, was 45.07 crore and profit after tax of 2.19 crore as against 34.67 crore and 1.29 crore respectively for the year ended March 31, 2010. Moreover the CRISIL has also graded 1/5, indicating poor fundamentals.
Ashika Recommends a Subscribe because it is the Book Running Lead Manager to the Issue [means, they will see to it the IPO sails through, otherwise they are going to BUY it]
At upper price band of Rs 32, the stock is trading at 10.6x its FY12E annualized EPS of Rs3.03. We believe that the scrip is priced conservatively because the company operates in a niche business & can witness supernatural growth phase in coming years. From last three years, RoE of the company is steadily increasing indicates pricing power in a highly competitive and unorganized industry.
