SMC has just a 2 star rating with EXPENSIVE Valuation for the IPO of Nitesh Estates,
A significant amount of funding and execution risk is involved in the real estate business. The company has limited track record in the highly competitive mid-income housing segment and enjoys low-margin. The percentage of equity dilution is fairly on higher side because of issuance of 7.23 crore new share on the base of 7.08 crore of existing Shares which is leading to significant downward impact on Price to book value from 4.70x to 1.64x. Therefore the valuation looks expensive if we compare the price to book ratio with the listed peers in the same domain that are placed in a better position.