Review By on January 13, 2017
Super Fine Knitters Ltd (SFKL) is a multi-divisional textile unit engage in the business of manufacturing knitted apparels for itself as well as for national and international brands and is a well-known supplier of knitted fabrics for large companies in India involved in manufacturing and exporting knitted apparels. The Company started as a fabric knitting unit and is now a well-known supplier of knitted fabrics and apparels to national and international brands. Its range of apparels covers all the age groups and segments such as for men’s wear, women’s wear, kids’ wear, boys & girls wear. SFKL uses variety of knitted fabrics such as 100% cotton to cotton lycra, 100% polyester, blended (cotton and polyester), mercerized to plain, washed to over dyed and other blended fabrics in the production of apparels. It sells all its products under the ‘Super Star’ brand.
To repay in full/part Company’s debt, it is coming out with a maiden IPO of 3400000 equity share of Rs. 10 each at a fixed price of Rs. 12 per share to mobilize Rs. 4.08 crore. Issue opens for subscription on 18.01.17 and will close on 24.01.17. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME platform. Issue is solely managed by Guiness Corporate Advisors Pvt Ltd and Cameo Corporate Services Ltd is the registrar to the issue. While most of the equity is issued at par, it also issued some equity at a price of Rs. 19 per share in 2013 and at a price of Rs. 20 in 2014. Post issue its current paid up equity capital of Rs. 8.99 crore will stand enhanced to Rs. 12.39 crore.
On performance front, company’s turnover and net profits for the Fiscal ended March 31, 2014, 2015, 2016 and for the six months period ended September 30, 2016 was Rs. 7,1.15 cr. / Rs. 0.49 cr., Rs. 7,6.27 cr. Rs. 0.54 cr., Rs. 84.91 cr. / Rs. 0.64 cr. and Rs. 43.58 cr. / Rs. 0.52 cr. respectively. If we annualize latest earnings and attribute to the fully diluted equity post IPO then asking price is at a P/E of around 14 plus against industry’s composite P/E of 27 that augurs well.
On merchant banker’s front, this is the 26th mandate from its stable and past issues have shown erratic movements post listing and 4 IPOs out of them suspended from trades. The suspension on these four company later on revoked.
Conclusion: Issue appears to have been priced reasonably. Risk savvy cash surplus investors may consider medium to long term investment.
Review By on January 13, 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 Super Fine Knitters Ltd. offers an early investment opportunity in Super Fine Knitters Ltd.. A stock market investor can buy Super Fine Knitters IPO shares by applying in IPO before Super Fine Knitters Ltd. shares get listed at the stock exchanges. An investor could invest in Super Fine Knitters IPO for short term listing gain or a long term.
Read the Super Fine Knitters IPO recommendations by the leading analyst and leading stock brokers.
Super Fine Knitters IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Super Fine Knitters IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Super Fine Knitters IPO?"
Our recommendation for Super Fine Knitters IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Super Fine Knitters IPO.
The Super Fine Knitters IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Super Fine Knitters IPO allotment status to check.
