Here are the brokerage
reviews of Specialty Restaurants Limited IPOKR Choksey has the following view,
The annualized earnings on diluted equity for FY12E is Rs 4.4 valued at a P/E of 33.5-35.6x. We believe though the business is inherently strong and the company has healthy balance sheet, the valuation seems expensive. Hence we recommend to Avoid the issue.
Sharekhan has the following view,
At the upper end of the price band (Rs155/share), the company is valued at 36.8x its M9FY2012 annualised post issue earnings and 24.6x its one year forward (FY2013 earnings) based on our rough cut estimates for FY2013. Valuation wise, the same is at a discount when compared to the only other listed food service player - Jubilant Foodworks (ruling at 43x its FY2013 earnings) though we reckon that the business models are different.
SBI Cap Securities has the following Views,
Speciality Restaurants Ltd. is currently valued at 33.5x and 35.6x of its 9M Dec, 2011 annualized earnings at lower and upper price band respectively whereas it is valued at 5.5x and 5.9x on P/BV multiple at lower and upper price band respectively. Although there are no listed companies in India that are directly comparable to the business carried on by Speciality Restaurants Ltd, we find the company to be expensively priced at IPO phase.
Current market conditions remain lack lustre and scenario for IPO markets continues to be challenging with three of the five companies that went public this calender year trading below their issue price. Hence we feel that investors should Avoid an issue demanding such a premium valuation.
