Review By on March 10, 2017
Maximus International Ltd (MIL) is primarily engaged in the business of importing and exporting lubricant oils, different types of base oils and other chemical products used mainly in the Automobile Industry, Power Industry and Metal manufacturing among others. The Company acts as a Merchant Exporter and Sourcing Company with a niche focus on lubricants and base oils. It has also started trading in plastic additives used for masterbatches, and certain agro related products. MIL has presence in the markets of Middle East & certain African Countries and understands needs of these Markets. It aims to expand its product portfolio in these regions and acts as a sourcing company for various industrial and agricultural based companies.
To part finance its long term working capital needs and general corpus funds, the company is coming out with a maiden IPO of 1506000 equity share of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 3.77 crore. Issue opens for subscription on 17.03.17 and will close on 22.03.17. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Aryaman Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Till September 2016 it issues all equity at par and in October 2016, it issued further equity at a price of Rs. 25 per share. Its current paid up equity capital of Rs. 3.70 crore will stand enhanced to Rs.5.21 crore post issue.
On performance front, as the company has started its activities in late FY 15-16, it has posted turnover/net profits of Rs. 0.49 cr. / Rs. 0.01 cr. (FY16). For first seven months of the current fiscal it has earned net profit of Rs. 0.22 crore on a turnover of Rs. 5.33 crore. If we annualize these earnings and attribute on fully diluted equity post issue, then asking price is at a P/E of around 34 plus making it aggressively priced issue. Peers are trading at around 13 to 20 P/Es.
On merchant banker's front, in last three years till date this is the 13th mandate and earlier mandates have shown mixed trends.
Conclusion: Considering track record and the aggressive pricing, only cash surplus risk savvy 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 Maximus International Ltd. offers an early investment opportunity in Maximus International Ltd.. A stock market investor can buy Maximus International IPO shares by applying in IPO before Maximus International Ltd. shares get listed at the stock exchanges. An investor could invest in Maximus International IPO for short term listing gain or a long term.
Read the Maximus International IPO recommendations by the leading analyst and leading stock brokers.
Maximus International IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Maximus International IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Maximus International IPO?"
Our recommendation for Maximus International 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 Maximus International IPO.
The Maximus International IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Maximus International IPO allotment status to check.
