Rajeshwari Cans IPO Review & Recommendations

Rajeshwari Cans IPO Review by Dilip Davda May apply

[Dilip Davda]  IPO pricing reduced to half from its original proposal augurs well for the investors, however, this also raises eyebrows as to how it mulled a sudden nose-dive in the pricing of IPO. Based on FY21 annualized earnings, the issue is priced aggressively at a P/E of 62, whereas on the basis of the last three years’ average, it is at a P/E of 23 and on the basis of FY20, the asking price is at a P/E of 55. Though it posted slow and steady growth in the last three fiscals, 50% reduction in the iPO price still makes it a highly-priced offer. Considering this, cash surplus – risk savvy investors may consider investment at their own risks. Read detail review...