Review By on September 24, 2015
Bella Casa Fashion & Retail Ltd (BCFRL) is engaged in the business of manufacturing of Bed sheets, Quilts, home furnishing textile items, printed/dyed furnishing fabrics and garments. The production unit of the company is situated at E-102, 103, EPIP, Sitapura Industrial Area, Jaipur, Rajasthan. This Industrial park has been developed by Rajasthan State Industrial development and Investment Corporation (RIICO) with the efforts mooted by the Government to provide assistance to the Export oriented units.
To meet its working capital requirements, BCFRL is coming out with a maiden IPO of 2450000 equity shares of Rs. 10 each at a fixed price of Rs. 14 per share to mobilize Rs. 3.43 crore. Issue opens for subscription on 28.09.15 and will close on 30.09.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue is lead managed by Hem Securities Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. Its current paid up equity capital of Rs. 6.77 crore will stand enhanced to Rs. 9.22 crore post issue. Since inception till date it has issued all equity at par and a bonus in the ratio of 23 for 10 in July 2015.
On performance front, for last three fiscals, it has posted an average EPS of Rs. 0.93. Its RONW ratio is poor at 9.42% for the said periods. In fact it’s EPS and RONW is at the low of Rs. 0.57 per share and 5.39% for FY15. For the year 2014-15, BCFRL’s revenue comprises of 91.63 % from the Domestic market and the rest from export of its products manufactured. The company is exporting our Products to Middle East Countries where the demand for company’s products arequite favorable as there are sizeable expatriates living in these countries. Having posted steady growth in top and bottom lines between FY2011 to FY 2014, it suffered a setback for FY 2015. Its turnover grew from Rs. 43.32 crore (FY11) to Rs. 83.76 crore (FY14) and net profit from Rs. 0.78 crorel (FY11) to Rs. 0.88 crore (FY14). For FY15 it has earned net profit of Rs. 0.38 crore on a turnover of Rs. 78.99 crore. If we attribute latest earnings on fully diluted equity post IPO, then EPS stands at Rs. 0.41 translating into asking price at a P/E of 34 plus making it a costly bet.
On merchant banker’s front, this is the 18th SME IPO from its stable and earlier mandates have shown average performances.
Risk avers well informed investors may consider this'High Risk-Low Return' bet.
Review By on September 24, 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 Bella Casa Fashion & Retail Ltd. offers an early investment opportunity in Bella Casa Fashion & Retail Ltd.. A stock market investor can buy Bella Casa Fashion IPO shares by applying in IPO before Bella Casa Fashion & Retail Ltd. shares get listed at the stock exchanges. An investor could invest in Bella Casa Fashion IPO for short term listing gain or a long term.
Read the Bella Casa Fashion IPO recommendations by the leading analyst and leading stock brokers.
Bella Casa Fashion IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Bella Casa Fashion IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Bella Casa Fashion IPO?"
Our recommendation for Bella Casa Fashion IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Bella Casa Fashion IPO.
The Bella Casa Fashion IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Bella Casa Fashion IPO allotment status to check.
