After successful listing of CIL (Coal India Ltd) and successful profits in PGCIL (Power Grid Corporation of India Ltd) FPO, it is time to invest in MOIL IPO. The issue is open from 26th of Nov to 1st of Dec for subscription.
With the price band of 340-375, the pricing looks very attractive. It may the listing gains of 30-50%. With the small equity(3.36 Crore on stake in IPO) and retail investment cap increased to 2 Lakh Rs, it looks like it will over subscribed many a times and thus many investors may want to buy the share on the listing day which should give the high listing gains for the investors.
The fundamentals of the company are very strong. They have cash reserves of 105 Rs per share. It has witnessed revenue and PAT CAGR of 31% and 42% over the last four years. Current Operating Profit Margin is 70.% and PAT margin is 52.1% which is very high. The offer price of the stock (340 to 375) is 9.6 to 10.6 times TTM (Trailing Twelve Month) EPS of Rs 35.5 as on Qtr ended Sep 10. The company has a status os Mini-Ratna given by Government of India in FY08.
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