Wednesday 13 February 2008

Recently Listed IPO’s - A Review

Future Capital Holdings Ltd: Hold

Robust Business Model.
Satisfactory prospects albeit higher risk
Fair long term potential if the company is able to successfully integrate Retail foray with its Financial venture.

Mundra Port: Hold


Long Term potential
Sound Business Model
Only listed private sector player in this space at present.

Brigade Enterprises Ltd: Sell

Real estate sector is out of flavor in the market
Regional player and unexceptional Business Model.
Low actual ownership of stated land bank.
Very high P/E multiple of 80 plus even after fall in price.

Kolte Patil Developers Ltd: Sell

Corporate Governance issues at IPO time.
Regional player in out of favour Real Estate space.
Low actual ownership of stated land bank.

Aries Agro Ltd: Hold

Fairly unique Business Model revolving around micronutrients.
Advantage of being in space where larger players are not present at the moment.

Precision Pipes & Profiles Company Ltd: Sell

Present in overcrowded space.
High dependence on collaborators for technology and limited suppliers.
Modest margins.

Burnpur Cement: Sell

Poor Business Model
Unbelievable capacity ramp-up proposed.
No captive power plant.
Extremely low capacity utilization hitherto against the backdrop of booming cement industry