Man Infra should list above Rs 300/share: Udayan Mukherjee
Published on Thu, Mar 11, 2010 at 08:29 | Source : CNBC-TV18
Updated at Thu, Mar 11, 2010 at 11:25
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Man Infra should list above Rs 300/share: Udayan Mukherjee
Man Infraconstruction will list its equity shares on the exchanges today. It has fixed issue price at Rs 252, at higher end of price band of Rs 243-252. Managing Editor of CNBC-TV18, Udayan Mukherjee said it would do well today. It should list at Rs 300 plus, which it deserved.
Man Infraconstruction will list its equity shares on the exchanges today. It has fixed issue price at Rs 252, at higher end of price band of Rs 243-252.
CNBC-TV18's Managing Editor Udayan Mukherjee said it would do well today. It should list at Rs 300 plus, which it deserved.
Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also watch the accompanying video.
It will do well on listing. It was Rs 252 initial public offering (IPO); I think we will see more than Rs 300 for starters today. Does it deserve to be Rs 300?-I think at Rs 300 it does deserve to be there because our expectations are that they will do Rs 20 earnings next year; they may outdo it but conservative expectation should be at least Rs 20 per share. At Rs 300 it's 15 times. IVRCL trades at 15 times; this one with no debt on its books, clean balance sheet.
So unleveraged construction plays should trade at 15 times when they are of reasonable size and like IVRCL it will get to Rs 300. Now because the oversubscription was huge and if it runs away now to more than Rs 350, which cannot be ruled out, then you would want to become a bit more cautious because then the stock is getting overvalued.
At the end of the day there are many peers and you can buy better companies probably at more than 20 PE, so between Rs 300-350 it needs to stabilise. The closer to Rs 300 the better for not getting overvalued but it is of Rs 300.
