Subscribe to Security and Intelligence services (India) : Choice Broking
Choice Broking has come out with its report on Security and Intelligence services. The research firm has recommended to “Subscribe ” the IPO in its research report as on July 28, 2017
Security & Intelligence Services (India) Ltd. (SIS) is a leading provider of security and facility management services in India. The company provides services in two verticals include private security services and facility management services.
SIS is the second largest and fastest growing security services providers in India in terms of revenue. The company provides a comprehensive range of security services ranging from providing trained security personnel for general guarding to specialized security roles. With the acquisition of MMS Security Pty Ltd., the company has enhanced it footprint in Australia where it is one of the largest security services provider. MSS provides paramedic and allied health, fire rescue services, mobile patrol, loss prevention and other related services in Australia.
At the upper price band of Rs815 per share, the issue is demanding a P/E multiple of 65.3 (FY17 EPS post issue) Based on our quick estimate, we arrive at an FY18E EPS of Rs19.1, which translated into an one year forward P/E multiple of 42.6(x), as compared to Quess Corp at 60.3(x) and Teamlease at 29.9(x) indicating that the issue is fully valued leaving limited space for further upside. Thus considering all these parameter we are assigning ‘Subscribe with caution’ rating to the issue.
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