Subscribe to Cox and Kings IPO: Hem Securities

"The company is bringing the issue at a price band of Rs 316-330 per share which will turn into P/E multiple of 12.23-12.78 at post issue eps of Rs 25.82 (Basis PAT annualized for 3 months ending 30-06-2009). The company has shown decent growth in its topline as well as bottomline numbers from last few years. Though the company’s debt position and high collection period is a cause of concern but repayment of debt as one of the object of this issue would help the company in controlling its interest cost to some extent. Also looking at the peer Thomas Cook (India) which is running at P/E multiple of more than 50 the valuation seems to leave scope for upside movement in company, hence we recommend the investor to subscribe the issue", says Hem Securities' report.

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