Dhanus Technologies
Issue open: September 10, 2007
Issue close: September 12, 2007
Price band: Rs 280-295
Business:
Telecards, fleet-tracking solutions along with BPO, and software services.
Business characteristics:
Almost no entry barriers in all the business segments
No unique positioning / selling point
A more of a ‘me too’ player
Financials
Standalone:
Sales Rs 90.46 crore FY2006-2007 CAGR of 310%
Net profit Rs 24.59 crore FY2006-2007 CAGR
Why IPO:
Acquire some properties to be used as offices.
Purchase equipment for the ITES and fleet tracking business.
Setting up of sales and support offices throughout the country.
Outlook
PE = 22.66 to 23.87
Low promoter holding post issue to the tune of 22%
Reliance and Nirmal Kotecha are investors along with some other institutional players
Call:
Fundamentally appears to be a pathetic company.
However investors with a penchant for risk and understands momentum investing can consider subscribe the issue. Expect some fireworks on this counter post listing, as the stock may sell as a concept stock. Mind well, to sell 37 lac shares of this company Reliance and ENAM are standing with the investment bankers- SREI.
Disclosure:
We may bid on last day looking into subscription details.
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