Here are the brokerage Reviews and Recommendations of "
Tara Jewels Ltd" IPO.
Sharekhan Analysts have the following Views,
A growing organised domestic jewellery market, a strong brand amongst the international jewellery chain, a strong management expertise and a focus on enhancing its retail reach make Tara a serious player in India’s organised jewellery market. The company is focusing on improving its growth prospects by enhancing its domestic retail reach. However, the strong expansion plans and working capital intensive nature of business would continue to put pressure on the balance sheet of the company in the near term.
At the lower end and upper end of the price band, the stock is offered at 10.3x and 10.4x its FY2012 earnings and FY2012 EV/EBITDA of 8.3x, which is close to average valuations of its domestic peers.
SBI Cap Securities Analysts have the following Recommendation
TJL is currently valued at 10.0x and 10.2x of its FY12 earnings at lower and upper price band respectively whereas it is valued at 2.0x on P/BV multiple. While comparing the company to its closest peers, the company appears to be fairly valued on most of the valuation parameters.
Considering TJL's leadership position in export of studded jewellery, visible growth in domestic retail business, coupled with strong client base and the issue's availability at fair valuation makes the issue worth investing from a long term perspective. Hence we recommend Investors to SUBSCRIBE the issue.
