Max Alert Systems IPO Review & Recommendations

Max Alert Systems IPO Review by Dilip Davda (Avoid)

[Dilip Davda]  <p><strong style="mso-bidi-font-weight: normal"></strong></p> <p>On performance front, the company has posted net profit of Rs. 1.73 crore and 1.30 crore for the last two fiscals of 2010-11 and 2009-10 on a turnover of Rs. 33.35 crore and 28.68 crore respectively. For nine months ended 31.12.2011 it has earned net profit of Rs. 1.71 crore on a turnover of Rs. 31.31 crore. Company's weighted average EPS for last three fiscal is Rs. 3.03 and for the nine months ended 31.12.2011 is Rs. 4.37 (annualized). NAV as on 31.12.11 is Rs. 75.10 which stands reduced post bonus issue of February 2012 and post issue NAV shall be around Rs. 20.78. The company has issued bonus shares in the ratio of 5 for 2 on 31.03.2011 and 9 for 2 on 08.02.12.<strong><span style="text-decoration: underline;"> Although the pricing looks reasonable, considering the recent fate of SME listings, only risk aver HNI investors can consider parking of funds for long term.</span></strong></p> Read detail review...