Review By on June 19, 2015
Ambition Mica Ltd is one of the leading manufacturers of mid segment decorative laminates and door skins. Within a short span, it has gained 8% market share and its brands like ANTIQUE, Art Lam, Antique Aurum, Antique Colour core, Antique Natural Wood for laminates and Beautique, Texas, Micro Touch, Door Touch for door skins. The company has diverse range with 1152 designs in laminates and 429 designs in door skins, that meets customer fancy.
'Ambition Mica' enjoys a unique brand identity as the market leader, which offerings that are considered industry benchmarks. “Ambition Mica” has come up with an object of new design solution for interiors and architects to inspire their idea with a commitment to set new trend in interior and furniture world to yield unexpected results. “Ambition Mica” offers simplicity with carefully chosen Textures, Wood grains series, Metals, Colors etc.
To part finance its corpus funds need and working capital, the company is coming out with an IPO of 1074000 equity share of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 4.30 crore. The issue opens for subscription on 23.06.15 and will close on 30.06.15. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotments shares will be listed on BSE SME. Issue is lead managed by Pantomath Capital Advisors Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue. Post IPO its existing equity capital of Rs. 2.90 crore will rise to Rs. 3.97 crore.
On performance front, for fiscal 2013 it has earned net profit of Rs. 0.87 crore on a turnover of Rs. 20.49 crore and for fiscal 2014 it has posted net profit of Rs. 1.12 crore on a turnover of Rs. 35.57 crore. For first 10 months ended 31.01.15 it has clocked in a turnover of Rs. 31.27 crore with a net profit of Rs. 1.44 crore.
If we annualized these earnings and attribute on expanded equity post issue then the issue is at a P/E of 9 plus and P/BV of 2 plus. Thus pricing appears to be reasonable.
On merchant banker’s front, this is eighth SME offer from it and its earlier mandates have given positive rewards to investors.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.
Review By on June 19, 2015
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Ambition Mica Ltd. offers an early investment opportunity in Ambition Mica Ltd.. A stock market investor can buy Ambition Mica IPO shares by applying in IPO before Ambition Mica Ltd. shares get listed at the stock exchanges. An investor could invest in Ambition Mica IPO for short term listing gain or a long term.
Read the Ambition Mica IPO recommendations by the leading analyst and leading stock brokers.
Ambition Mica IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Ambition Mica IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Ambition Mica IPO?"
Our recommendation for Ambition Mica IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Ambition Mica IPO.
The Ambition Mica IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Ambition Mica IPO allotment status to check.
