Review By on March 10, 2017
Jash Dealmark Ltd (JDL) is a leading import export solution provider. It started the business of trading of exim licences. July 2014 onwards the company also started to import various goods. From fiscal 2014-15, it has ventured in trading and supply of industrial and engineering plastic Components as per customer requirement. From financial year 2015-16, the company has started trading of various FMCG products within the country. Thus it has three business segments viz trading of exim licences, trading and import of industrial and engineering plastic Components and trading in FMCG products
To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 1350000 equity share of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 5.40 crore. Issue opens for subscription on 15.03.17 and will close on 17.03.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Gretex Corporate Services Pvt Ltd and Purva Sharegistry (India) Pvt Ltd is the registrar to the issue. After initial equity issue at par in 2012, it issued further equity at a price of Rs. 40 per share in Sept. 2016 and January 2017. It has also issued bonus shares in the ratio of 15 for 1 in September 16. Its current paid up equity capital of Rs.3.64 crore will stand enhanced to Rs. 4.99 crore post issue.
On performance front, the company has reported turnover/net profits of Rs. 12.70 cr. / Rs. 0.02 cr. (FY14), Rs. 17.08 cr. / Rs. 0.03 cr. (FY15) and Rs.108.15 cr./ Rs. 0.12 cr. (FY16). For the first nine months of the current fiscal, it has posted net profit of Rs.0.21 crore on a turnover of Rs. 257.79 cr. Thus last two fiscals turnover jump is surprising. If we annualize the latest earnings and attribute it to fully diluted equity post issue, then asking price is at a P/E of 71 making it a costly bet. Surprisingly, as per prospectus details, the company is comparing itself with major players like Baja Corp, Dabur, Emami, Godrej Consumers etc as its listed peers.
On merchant banker’s front, this is the 2nd mandate from its stable and earlier one gave petty return on the listing day.
Conclusion: This issue is highly priced one. Only risk savvy cash surplus investors may consider investment for long term.
Review By on March 10, 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 Jash Dealmark Ltd. offers an early investment opportunity in Jash Dealmark Ltd.. A stock market investor can buy Jash Dealmark IPO shares by applying in IPO before Jash Dealmark Ltd. shares get listed at the stock exchanges. An investor could invest in Jash Dealmark IPO for short term listing gain or a long term.
Read the Jash Dealmark IPO recommendations by the leading analyst and leading stock brokers.
Jash Dealmark IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Jash Dealmark IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Jash Dealmark IPO?"
Our recommendation for Jash Dealmark IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Jash Dealmark IPO.
The Jash Dealmark IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Jash Dealmark IPO allotment status to check.
