Archidply Ind not an investment rate stock

CNBC-TV18’s Managing Editor, Udayan Mukherjee : I think Archidply Industries is a nothing kind of a stock, it has come at about 11-12 kind of P/E multiple. It is a plywood manufacturer and wouldn’t leave much on the table on pricing.

It barely got subscribed one time and the allotment figures are very similar and disturbingly similar to some of the recent IPOs, which have got ramped up post listing. There was nothing from QIBs but some from retail and therefore the possibility of it darting this way and that after listing it always exits. But I think even if it happens it will be a momentary or a few day kind of a spike after that this stock deserves to be much lower.

The whole market or the large part of the market is trading at 12 P/E why would you go down and buy a very smallcap, fledgling plywood manufacturer of all things. So I don’t think this is an investment rate stock at all. I don’t know about today, tomorrow and whether it could fly but eventually I would be very surprised if it did not settle down far lower than what its issue price was.