IPO Performance Check: Newly listed Sai Silks, Samhi Hotels, Signature Global, Zaggle Prepaid report drop in Q1FY24 earnings
Zaggle Prepaid Services reported an increase in revenue in Q1 but a drop in net profit; analysts see selling pressure on some of the companies due to disappointing results
Sai Silks (Kalamandir), Zaggle Prepaid Services, Samhi Hotels and Signature Global have recently released their first earnings reports since going public. Analysts are now suggesting that some of these companies may experience selling pressure due to disappointing results, and they advise investors to exercise caution. It's worth noting that these financial results pertain to the first quarter ended on June 30, 2023, with the earnings for the September quarter to be disclosed later. Avinash Gorakshakar, Director of Research at ProfitMart Securities, noted that Zaggle Prepaid's revenue showed an increase, and the management's commentary was positive. However, he expressed concerns about the poor financial performance of companies like Signature Global and Sai Silks, suggesting that they may face selling pressure. In the midst of this, Zaggle Prepaid Ocean Services secured a $20 million deal with Visa Worldwide to issue various forex co-branded cards. According to Shreyansh Shah, a Research Analyst at StoxBox, this development is expected to boost the company's revenue and profits in the coming quarters. However, Shah cautioned that current valuations are relatively high, advising investors to refrain from entering the market at this time.
2/5
Zaggle Prepaid Ocean Services witnessed an impressive 43.5 percent increase in its stock price from its IPO value of Rs 164 to Rs 235.4 on Friday close. However, the company's net profit saw a notable decline of 68.2 percent, dropping to Rs 2 crore in Q1FY24 from Rs 6.3 crore in the same period the previous year. Nevertheless, revenue from operations demonstrated a significant increase, rising by 33.68 percent to Rs 118.47 crore from the previous year's figure of 88.62 crore. The stock was listed on bourses on September 22, 2023.
3/5
Samhi Hotels witnessed a significant surge in its shares, marking a 23.5 percent increase from its initial issue price of Rs 126. However, on Friday, the shares saw a 1.98 percent decrease, settling at Rs 155.65. The company's net loss has narrowed, decreasing to Rs 83.5 crore in the quarter ended June FY24 from Rs 100.9 crore in Q1FY23, while revenue from operations showed a 13 percent increase, reaching Rs 190.4 crore from the previous year's Rs 168.5 crore. The stock made its debut on September 22, 2023.
4/5
Signature Global's stock price surged by 31 percent from its IPO price of Rs 385 and concluded Friday's session with a 0.72 percent increase, closing at Rs 504.5. The company reported a net loss of Rs 7.18 crore in Q1FY24, compared to a profit of Rs 32.7 crore in the same period the previous year. Revenue from operations slumped by a significant 69 percent to Rs 165.8 crore from the previous year's Rs 542 crore. The stock was listed on exchanges on September 27, 2023.
Sai Silks (Kalamandir)’s stock registered a 9.7 percent increase from its issue price of Rs 222. However, on Friday, it fell 1.54 percent over the previous day, to close at Rs 243.7. The company’s net profit declined 41.24 percent to Rs 16.78 crore in Q1FY24 from Rs 28.56 crore in Q1FY23. Revenue from operations also decreased 10.45 percent to Rs 304.62 crore from the previous year's figure of Rs 340.17 crore in the same period. The stock was listed on bourses on September 27, 2023.
