Review By Dilip Davda on September 7, 2016
Husys Consulting Ltd (HCL) is in the business of creating the concept of HR Function Outsourcing (HR Function Management (HRFM). Its focus is to be the most innovative, trusted partner in delivering cost effective solutions in the arena of Human Resources Development to the Industry & Society. HCL provides service products/solutions that are Customized, Cost & Time effective for Business. It plans to be the leader in deploying & delivering high quality, innovative, cost effective and time sensitive HR Services, leveraging human potential for the advancement of both business and society.
To repay its existing working capital, development of Cloud based HR software platform and up gradation of existing IT Infrastructure, domestic and international marketing and business development, the company is coming out with a maiden IPO of 608000 equity share of Rs. 10 each at a fixed price of Rs.69 per share to mobilize Rs. 4.20 crore. Issue opens for subscription on 09.09.16 and will close on 19.09.16. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Issue is solely lead managed by Sarthi Capital Advisors Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue. Since inception till February 2014 it issued shares at par. Then it issued bonus shares in the ratio of 1 for 1 in October 2014 and then further equity at a price of Rs. 12.68 in December 2015. Post issue its current paid up equity capital of Rs. 1.67 crore will stand enhanced to Rs. 2.28 crore. Post allotment, shares will be listed on NSE Emerge SME Platform.
On performance front, for last three fiscals, the company has posted turnover / net profit of Rs. 5.28 cr. / Rs. 0.28 cr. (FY14), Rs. 9.26 cr. / Rs. 0.24 cr. (FY15) and Rs. 12.45 cr. / Rs. 0.38 cr. (FY16). Thus if we attribute latest earnings on post issue equity then asking price is at a P/E of 41 plus and at a P/BV of 4.7. Thus it looks fully priced. However, fancy for this sector witnessed for main board IPOs like Teamlease and Quess Corp that are faring well post listings, this issue will create fancy post listing.
On merchant banker’s front, this is the 18th IPO from its stable and earlier mandates have shown mixed trends.
Conclusion: Sector in which this company is operating has created fancy in the market. Hence, investor may consider modest investment for medium to long term in this issue.
Review By Dilip Davda on September 7, 2016
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 Husys Consulting Ltd. offers an early investment opportunity in Husys Consulting Ltd.. A stock market investor can buy Husys Consulting IPO shares by applying in IPO before Husys Consulting Ltd. shares get listed at the stock exchanges. An investor could invest in Husys Consulting IPO for short term listing gain or a long term.
Read the Husys Consulting IPO recommendations by the leading analyst and leading stock brokers.
Husys Consulting IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Husys Consulting IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Husys Consulting IPO?"
Our recommendation for Husys Consulting IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Husys Consulting IPO.
The Husys Consulting IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Husys Consulting IPO allotment status to check.
