Markets
BSE See NSE See 39,452.07
-289.29 (-0.73%)
collapse Related Readings collapse

Not Exciting Enough - Ashoka Buildcon

| 9/27/2010 3:26 PM Monday

Ashoka Buildcon (ABL), which builds and operates roads and bridges in India on a build-operate-transfer (BOT) basis, proposes to enter the capital market to garner `225 crore through its initial public offering (IPO). The price band has been fixed between `297 and `324 per equity share. The company is one of the early players that made an entry into BOT projects. At present ABL has 26 BOT projects in hand. Out of this 17 projects are operational, six are under construction and three have been handed over after completion. The completed projects has acquired for the company experience in the entire value chain of the BOT business.

The company also has an engineering, procurement, and construction (EPC) division. It also maintains and repairs the existing roads under the BOT division. The division also constructs and modernises power distribution networks and constructs commercial, industrial, and institutional buildings for third parties. Till May 31, 2010 the company along with its subsidiaries had constructed 44 roads and bridges and built over 5.4 million sq feet of commercial, industrial, and institution projects. The order book till May 31, 2010 stands at `1,615.36 crore. Moreover we would also like to mention that the company has a pan-India presence. Further, in 15 out of the 20 projects mentioned above the company has been able to securitise to the extent of 150 per cent of the project cost.

The company plans to raise `225 crore primarily to be used for buying capital equipment to the tune of `25 crore, meet working capital requirement of around `45 crore, repay debts to the tune of `55 crore, and to fund certain subsidiaries for prepayment/repayment of their loans of approximately `60 crore.

The rest is to be used for general corporate purposes and issue-related expenses. On the financial front, the company has performed well in both topline and bottomline in FY10. Its net sales have witnessed a growth of 53 per cent at `795.57 crore for FY10 as against `518 crore in FY09. The net profit has witnessed a growth of 124 per cent at `85.88 crore for FY10 as against `38.30 crore in FY09. On the valuation front, the stock is likely to trade at P/E of 22.72 – 24.55x on its post-issue equity capital which is in line with its other listed peers like IRB Infrastructure which trades at 21.90x and Madhucon Projects which trades at 26.50x. On the EV/EBITDA front, the stock is likely to trade at 13.95 – 14.68x as compared to 10.62x and 11.34x of IRB Infrastructure and Madhucon projects respectively. At this moment the company looks like it will trade in line with its peers, thereby leaving very little scope for any upside in the share price. Therefore, we suggest that investors should refrain from the issue for the time being.

 

Find More Articles on: Know your IPO, IPO, IPO Analysis, DSIJ Magazine, New Issue Analysis

news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.