Innoventive Industries has discovered at a lower band Rs 117 and if you see the capital raising history by the company in the past there are a lot of confusion, says SP Tulsian, sptulsian.com.
Tulsian told CNBC-TV18, "Innoventive Industries has discovered at a lower band Rs 117 and if you see the capital raising history by the company in the past there are a lot of confusion. Second thing, in respect to the comparison, if I compare this company with Lumax Auto Technologies which has a better financials, which has an EPS of about Rs 30 that stock is ruling at a PE multiple of 5."
He further added, "I do not know whether this company has any justification to rule at a PE multiple of close to 9 times because if you take their expected EPS of close to about 13.50 or 14 for FY11 I have my doubts that it can really hold the price beyond or even the three digit levels can be really be held on. It cannot be compared with the other IPOs which we have been seeing a lot of operator activity but ultimately eventually that the stock should settle between a range of Rs 85 to 90 in the next one month or so."
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