Review By on September 24, 2015
Vishal Bearings Ltd (VBL) is engaged in manufacturing of taper rollers, cylindrical rollers, spherical rollers and certain components of taper rollers and are one of the key players in the list of finished roller manufacturers in India. It is identified as ¨DDirect Online Supplier¡¬ for cold headed components-Rollers by National Engineering Industries Limited, Jaipur (NBC Bearings Limited), a CK Birla Group Company where VBL’s products go directly for manufacturing of bearings without checks on quality and specifications.
The company supplies finished Bearing rollers and products across India to reputed bearing manufactures and OEMs in domestic market for end users in diverse industries such as rail, light vehicles, off-highway, heavy trucks, industries classified as ‗automobile industries‘, and heavy industries, industrial processes, gear drives, energy and industrial distribution, as segments within the ‘process industries‘ and also export its products to customers based outside India for end users in diverse industries. VBL also exports cylindrical roller which cater the requirements of international customers in Germany, Hungary, Turkey etc. in diverse industries such as, automotive and Hydraulics. It has also ventured into power generation business by installing wind mill in year 2010-11 at KotdaPitha in Amreli, Gujarat with a commissioned capacity of 0.25MW and is currently used for its captive consumption.
To meet its working capital requirements, the company is coming out with a maiden IPO of 1296000 equity shares of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 3.24 crore. Issue opens for subscription on 28.09.15 and will close on 30.09.15. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Hem Securities Ltd is the lead manager and Karvy Computershare Pvt Ltd is the registrar to this IPO. It issues equity at par since inception till 2012 and issued bonus shares in the ratio of 13 for 1 in May 2015.Post IPO its current paid up equity capital of Rs. 3.50 crore stand enhanced to Rs. 4.80 crore.
On performance front, the company has posted an average EPS of Rs. 4.20 and RONW of 42.86% for last three fiscals. For FY 15 it has earned net profit of Rs. 1.70 crore on a turnover of Rs. 28.16 crore translating into an EPS of Rs. 4.85 on existing equity. If we attribute these earnings on fully diluted equity post IPO then EPS would be around Rs. 3.54 thus asking price is at a P/E of 7 against industry composite of 30 plus. Thus it augurs well.
On merchant banker’s front, this is 19th SME IPO from its stable and earlier mandates have given average returns.
Well informed and fund surplus investors may park investment for long term.
Review By on September 24, 2015
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 Vishal Bearings Ltd. offers an early investment opportunity in Vishal Bearings Ltd.. A stock market investor can buy Vishal Bearings IPO shares by applying in IPO before Vishal Bearings Ltd. shares get listed at the stock exchanges. An investor could invest in Vishal Bearings IPO for short term listing gain or a long term.
Read the Vishal Bearings IPO recommendations by the leading analyst and leading stock brokers.
Vishal Bearings IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Vishal Bearings IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Vishal Bearings IPO?"
Our recommendation for Vishal Bearings IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Vishal Bearings IPO.
The Vishal Bearings IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Vishal Bearings IPO allotment status to check.
