Brokerages have expressed subdued outlook on the issue despite of the fact that a wide range of products is the strength of the company.
Most analysts are positive and have given a buy recommendation for the IPO, thanks to its reasonable valuation and competitive strength of the company
While assigning three-out-of-five rating to the issue, Centrum Wealth also suggests investors can subscribe to the issue from a long term perspective. It believes it is fairly priced.
"SSFL's successful exit from corporate debt restructuring (CDR) mechanism in March 2017 (well ahead of scheduled date of Mar’18), consistent profits along with a healthy asset book, builds confidence in the prospects," Centrum Capital said.
The response to anchor book was quite strong but brokerages are mixed in their opinion on the issue
Anand Rathi said higher multiple is justified given the company’s ability to grow profitably and command better return ratios. Hence it recommended subscribing the issue
Looking after strong fundamentals of the company along with the healthy growth prospects of sector, Hem recommends subscribing issue.
Considering its better operating metrics, attractive valuations which are justifiable to listed peer Dr Lal Pathlabs, brokerages advise subscribing the issue for listing gains as well as for long term
Given its strong orderbook, attractive valuations, strong execution capabilities, robust balance sheet, brokerages advised subscribing the issue.
Brokerage houses advised either subscribing with caution or said high risk appetite investor may opt this public issue due to current equity market conditions and dependency of the company on limited number of large customers for revenue.
Majority of brokerage houses advised subscribing to Aavas Financiers issue with long-term perspective, but not for listing gains as the issue is fairly priced and FY19 earnings multiple do not leave much upside in the near term.
Garden Reach is a shipbuilding company in India under the administrative control of the MoD and primarily adhere to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard
At the higher price band of Rs 475 per share, IRCON's share is valued at a P/E multiple of 10.9x (to its restated FY18 EPS of Rs 43.8), which shows the issue is attractively priced at current levels, brokerages said.
Majority of brokerage houses do not expect huge listing gains from the microfinance lender as they feel it is highly valued at current price band.
Some are saying it is a high conviction buy, some are saying it is a must in any portfolio while some are rating it as five out of five.
Given the decent financials, mature valuations and growth prospects, majority of brokerage houses are of the view that investors can subscribe the issue with a long term perspective, but not for listing gains.
SMC says only high-risk investors should opt for the issue as it looks expensive and given the company's high dependence on its global business. Choice Broking also advises subscribing with caution due to its expensive valuation.
Multiple brokerages recommend subscribing to the issue with a long term perspective as valuations could be higher from some perspective. But the business has a strong potential to grow ahead, they said.
IIFL Private Wealth feels unlike developed countries, there's a huge demand for matchmaking within communities/castes in India.
The very first reason for avoiding the issue is its weak financials and the second prominent reason is its valuations, which are high compared to listed peers, analysts said.
Most domestic brokerage firms have recommended investors to subscribe to the issue on account of attractive valuations, healthy order book, and low debt on books as well as quality management.
Brokerage houses largely recommend subscribing to the issue, citing penetration in areas that large financial institutions are absent from, but also flag risks of change in business environment, among others.
Given GTPL's weak fundamental performance, competitive intensity and high valuation, the research house recommended investors to avoid the IPO, Centrum said.
CDSL is likely that the listing may also be at a premium to the offer price. However, it is difficult to say if the stock will be a consistent outperformer subsequently, Centrum said.
Brokerage houses cite better leadership position, volumes to subscribe to the issue. However, challenges include tech challenges, dependence on few advertising agencies, among others.