Review By on September 17, 2017
Cadsys (India) Ltd. (CIL) is a domain-focused GIS and engineering business technology service provider headquartered in Hyderabad, Telangana, India, with presence in the United States. CIL is primarily engaged in providing IT enabled services for geospatial, field engineering survey, software development and engineering design services in the domains like, telecom, CATV, oil & gas, electricity and other utilities. It leverages a differentiated business model through investments in pre-fabricated software components and frameworks to build enduring value for customers. It has expanded service portfolio with strategic acquisitions to emerge as a well-balanced player in the IT services segment. CIL’s clients include government departments and companies in telecom, power and other utility sectors.
To part finance its pre-payment/repayment of loans and general corpus fund needs, CIL is coming out with a maiden IPO of 2100000 equity share of Rs. 10 each at a fixed price of Rs. 70 per share to mobilize Rs. 14.70 crore. Issue opens for subscription on 21.09.17 and will close on 25.09.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Saffron Capital Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Issue constitutes 27.99% of fully diluted post issue paid up equity capital of the company. Since inception till 2002 it issued all equity at par and issued fresh equity at a price of Rs. 50 per share in March 2012. It has also issued bonus shares in the ratio of 4 for 1 in November 2016. Post issue its current paid up equity capital of Rs. 5.40 crore will stand enhanced to Rs. 7.50 crore.
On performance front, CIL has posted turnover/net profits of Rs. 21.06 cr. / Rs. 2.97 cr. (FY14), Rs. 24.41 cr. / Rs. 4.68 cr. (FY15), Rs. 31.99 cr. / Rs. 5.52 cr. (FY16) and Rs. 43.64 cr. / Rs. 10.95 cr. (FY17). For last three fiscals, on consolidated basis it has posted an average EPS of Rs.34.38 and average RoNW of 35.20%. Issue is priced at a P/BV of 1.31.If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of 4.8 that augurs well. Issue is priced reasonably and its track record makes it an attractive bet.
On merchant banker’s front, this is the first mandate from its stableHence no track records are available.
Conclusion: Considering reasonably priced issue, Investment for short to long term may be considered.
Review By on September 17, 2017
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 Cadsys (India) Ltd. offers an early investment opportunity in Cadsys (India) Ltd.. A stock market investor can buy Cadsys IPO shares by applying in IPO before Cadsys (India) Ltd. shares get listed at the stock exchanges. An investor could invest in Cadsys IPO for short term listing gain or a long term.
Read the Cadsys IPO recommendations by the leading analyst and leading stock brokers.
Cadsys IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Cadsys IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Cadsys IPO?"
Our recommendation for Cadsys IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Cadsys IPO.
The Cadsys IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Cadsys IPO allotment status to check.
