Review By on March 9, 2017
Chemcrux Enterprises Ltd (CEL) is an ISO 9001:2008 and ISO 14001:2004 certified company and is engaged in high pressure Oxidation, Chlorosulfonation, Nitration and Aceylation forb manufacturing of intermediates for bulk drugs, dyes and pigments. It also exports its products to Europe, Egypt and United States of America. It also caters to customers with tailor made products. CEL’s major selling products are Lassamide, various Chloro Benzoic acids and Nitro Benzoic acids.
To part finance its working capital and general corpus needs, the company is coming out with a maiden IPO of 1336000 equity share of Rs. 10 each at a fixed price of Rs.18 per share to mobilize Rs. 2.40 crore. Issue open s for subscription on 15.03.17 and will close on 20.03.17. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. From 1996 till 2013 it issued equity at par and then allotted bonus shares in the ratio of 1 for 1 in October 2016. Its current paid up equity capital of Rs. 3.60 crore will stand enhanced to Rs. 4.94 crore post issue.
On performance front, it has posted turnover/net profits of Rs. 18.12 cr. / Rs. 0.44 cr. (FY13), Rs. 15.65 cr. / Rs. 0.43 cr. (FY14), Rs. 19.66 cr. / Rs. 0.85 cr. (FY15) and Rs. 20.24 cr. / Rs. 1.62 cr. (FT16). For first half of the current fiscal, it has earned net profit of Rs. 1.10 crore on a turnover of Rs. 13.83 cr. If we annualize these earnings and attribute on fully diluted equity post IPO then asking price is at a P/E of around 4 plus and below 1 P/BV. Thus issue is priced very attractively. It has no listed peers to compare with.
On merchant banker’s front, this is the 37th mandate from its stable and earlier mandates have expressed mixed trends.
Conclusion: Issue is attractively priced, hence investors may consider investment for medium to long term.
Review By on March 9, 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 Chemcrux Enterprises Ltd. offers an early investment opportunity in Chemcrux Enterprises Ltd.. A stock market investor can buy Chemcrux Enterprises IPO shares by applying in IPO before Chemcrux Enterprises Ltd. shares get listed at the stock exchanges. An investor could invest in Chemcrux Enterprises IPO for short term listing gain or a long term.
Read the Chemcrux Enterprises IPO recommendations by the leading analyst and leading stock brokers.
Chemcrux Enterprises IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Chemcrux Enterprises IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Chemcrux Enterprises IPO?"
Our recommendation for Chemcrux Enterprises IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Chemcrux Enterprises IPO.
The Chemcrux Enterprises IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Chemcrux Enterprises IPO allotment status to check.
