Navkar Corporation IPO Review and Recommendation are as follows,
ICICI Direct has the following Views,
At the higher end of the price band of | 155, the stock is valued at 30.2x post issue equity FY15 P/E, which appears to be high considering its debt and fundamentals. More established and larger players like Allcargo Logistics and Concor that are growing at higher annual rates and have lower debt/equity are trading at lower/similar multiples. Hence, we recommend that investors AVOID subscribing to the IPO.
Angel Broking has the following Views,
The opening of the new ICD (4,74,000 TEUs) and the logistics park will also add to the revenues, thus leading to a higher EPS for the company. On the Price/Book value front, the company is valued at 2.3x (at the upper end of the price band; Pre-IPO book value per share); in terms of PE based valuation, the company is valued at 23.2x (at the upper end of the price band; Pre-IPO EPS) on the basis of FY2015 numbers. Considering future growth potential of the company, we recommend a Subscribe on the issue from a longer term perspective.
Geojit BNP Paribas Analyst has the following view,
NCL has strong profitability with FY15 EBITDA margin of 36% while peers are in the range of 9%-29%. Total debt is at Rs5,550mn with a debt-equity ratio of 0.75x as of FY15. At upper price band of Rs155, NCL is valued at a P/E of 23x and P/B of 2.3x on FY15 (not adjusted for IPO dilution), while peers are in a range of 17x - 30x and 2.1x - 4.2x respectively on FY15 earnings. We recommend to “SUBSCRIBE” with a long term perspective.
