Hem Securities has come out with a Research Report on the upcoming IPO of M&B Switchgears Limited with an "AVOID" remark
According to the Report from Hem Securities, the company is bringing the issue at price band of Rs 180-186 which will convert into p/e multiple of more than 100 on post issue FY’11 EPS of Rs 0.39.
The company with relatively small scale of operation as compare to its large peers is into high working capital intensive business . Co also has negative fund flow from operations over the last two years. Also
company is looking very expensive at price band at which it is bringing the issue
According to the Report from Hem Securities, the company is bringing the issue at price band of Rs 180-186 which will convert into p/e multiple of more than 100 on post issue FY’11 EPS of Rs 0.39.
The company with relatively small scale of operation as compare to its large peers is into high working capital intensive business . Co also has negative fund flow from operations over the last two years. Also
company is looking very expensive at price band at which it is bringing the issue
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