Review By on December 29, 2016
Maheshwari Logistics Ltd (MLL) is engaged in providing logistics services, supplying of non-coking coal, manufacturing of kraft paper and trading in variety of papers. Thus the company has diverse business model that covers three sectors i.e. logistics, fuel and papers.
To part finance its working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 3996000 equity share of Rs. 10 each at a fixed price of Rs. 68 per share to mobilize Rs. 27.17 crore. Issue opens for subscription on 30.12.16 and will close on 06.01.2017. 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 managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. After initial issue at par, it issued further capital at a price ranging from Rs. 110 to Rs. 1968 and has also issued bonus in the ratio of 4 for 1 in March 2012 and 1 for 1 in December 2016. Post issue its current paid up equity capital of Rs. 10.80 crore will stand enhanced to Rs. 14.80 crore.
On performance front, it has posted turnover/net profits of Rs. 414.89 cr. / Rs. 5.17 cr. (FY14), Rs. 534.93 cr. / Rs. 5.84 cr. (FY15) and Rs.605.47 cr. / Rs. 6.92 cr. (FY16). For first half of the current fiscal it has posted net profit of Rs. 4.71 crore on a turnover of Rs. 334.81 cr. If we annualize these earnings and attribute on fully diluted equity post IPO, then asking price is at a P/E of 10 plus and a P/BV of around 1.2 that appears to be reasonable. The company has no listed peer to compare with.
On merchant banker’s front, this is the 33rd mandate from its stable and earlier mandates have shown mixed trends post listings.
Conclusion: Considering the future prospects of logistics, fuel and paper sectors, this issue may be considered for investment on medium to long term.
Review By on December 29, 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 Maheshwari Logistics Ltd. offers an early investment opportunity in Maheshwari Logistics Ltd.. A stock market investor can buy Maheshwari Logistics IPO shares by applying in IPO before Maheshwari Logistics Ltd. shares get listed at the stock exchanges. An investor could invest in Maheshwari Logistics IPO for short term listing gain or a long term.
Read the Maheshwari Logistics IPO recommendations by the leading analyst and leading stock brokers.
Maheshwari Logistics IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Maheshwari Logistics IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Maheshwari Logistics IPO?"
Our recommendation for Maheshwari Logistics IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Maheshwari Logistics IPO.
The Maheshwari Logistics IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Maheshwari Logistics IPO allotment status to check.
