Avoid Timbor Home as it lacks strength: Udayan

Timbor Home, a manufacturer and retailer of solid wood furniture, modular kitchens and doors with a pan-India presence and more than 80 exclusive stores, got listed on Indian bourses on Wednesday. The issue had opened for subscription during May 30-June 2.

Udayan Mukherjee, managing editor of CNBC-TV18 feels that is an avoidable stock. He said, "It deserves to trade at much lower than where it got its IPO done."
He further stated, "It would be lucky to do Rs 3 crore profit this year. The IPO marketcap is close to Rs 100 crore. One cannot justify 25-30 PE multiple for stocks of Rs 100 crore marketcap with a pedigree of Timbor Home."
The primary market has been an unmitigated disaster for the last six months. According to Mukherjee, the 15-20 of rank smallcaps that have come in have destroyed money for most people with very few exceptions. He further said, "Some of the bigger IPOs and FPOs have been bad experiences for a lot of investors."
The sentiments were also hurt on the margin front. Mukherjee feels that the IPO market is very important for the retail. "Both, from the government FPO and recently listed smallcaps, it has been a sour experience for the primary market over the last few months. The way things are headed, I doubt whether it will change with ONGC and Sail," he added.