Review By on September 22, 2015
Cawasji Behramji Catering Services Ltd (CBCS) is currently engaged in the business of providing food catering & housekeeping services, both in India and abroad. In context of services offering in abroad / overseas clients, it provides catering & housekeeping services on vessels travelling to high seas. Besides this, the Company has also forayed into restaurant business wherein it provides multi-cuisine food to consumer through its restaurant. Thus the company currently involves in offshore catering and housekeeping services, onshore catering services and fine dine restaurants.
To get its shares listed on exchange, the company is coming out with a maiden offer for sale of 1330000 equity shares of Rs. 10 each at a fixed price of Rs. 14 per share to mobilize Rs. 1.86 crore. Issue opens for subscription on 29.09.15 and closes on 05.10.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Hem Securities Ltd is the lead manager and Sharex Dynamic (India) Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. CBCS issued equity shares at par since inception till 2009 and has also made two bonus issues in the ratio of 1.5 for 1 in June 2013 and 3 for 1 in April 2015. This being offer for sale, paid up equity remains at Rs. 5 crore post issue.
On performance front, the company has posted an average EPS of Rs. 3.18 for last three fiscals. For FY 15 it suffered a setback and has posted net profit of Rs. 0.82 crore on a turnover of Rs. 64.16 crore against net profit of Rs. 2.22 crore on a turnover of Rs. 72.90 crore. As the paid up equity has jumped three fold post bonus in April 2015, if we attribute its latest earnings on current equity then it has posted an EPS of Rs. 1.64 and thus asking price is at a P/E of 8 plus. On P/BV factor, as its NAV is around Rs. 21 asking price is at a 67% P/BV. Thus the offer price appears to be reasonable.
On merchant banker’s front, this is 20th SME issue from its stable and earlier mandates have given average rewards.
Investors having surplus funds may consider this offer for medium to long term rewards.
Review By on September 22, 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 Cawasji Behramji Catering Services Ltd. offers an early investment opportunity in Cawasji Behramji Catering Services Ltd.. A stock market investor can buy Cawasji Behramji Catering IPO shares by applying in IPO before Cawasji Behramji Catering Services Ltd. shares get listed at the stock exchanges. An investor could invest in Cawasji Behramji Catering IPO for short term listing gain or a long term.
Read the Cawasji Behramji Catering IPO recommendations by the leading analyst and leading stock brokers.
Cawasji Behramji Catering IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Cawasji Behramji Catering IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Cawasji Behramji Catering IPO?"
Our recommendation for Cawasji Behramji Catering IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Cawasji Behramji Catering IPO.
The Cawasji Behramji Catering IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Cawasji Behramji Catering IPO allotment status to check.
