NEW DELHI: The Rs 4,633 crore IPO by Indian Railway Finance Corporation (IRFC), hitting on Monday, has many brokerages recommending subscribe on it with long-term gains.
Analysts said the IPO looks attractively priced and can be a good bet for conservative long-term investors, as expansion drivers for return on equity (RoE) or margins are missing, even as the company is seen reporting consistent growth numbers.
Choice Broking said that valuation at price to book value (P/BV) of 1 time looks attractive for long-term conservative investors, considering the company’s strong profitability growth of 26.3 per cent during FY18-FY20, double-digit return on equity (RoE) of 12.2 per cent in FY21 and low risk profile of the business with zero gross non-performing assets (NPAs).
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Before the Antony Waste IPO opened, analysts were divided on its prospects, with many saying people should subscribe for listing gains, while some others had recommended ‘avoid’ ratings.
NEW DELHI: Shares of Antony Waste Handling Cell debuted in line with the prevailing grey market expectations on Friday. But analysts said upside for the stock may be limited for here on.
The scrip got listed at Rs 436.10 on NSE, a 38.44 per cent premium over the issue price of Rs 315. On BSE, the stock got listed at Rs 430, up 36.51 per cent. The IPO was subscribed 15 times during the book building process.
Antony Waste Handling Cell is expected to make a decent debut on the exchanges on Friday, January 1, riding on the underlying bullish sentiment in the market but may fail to match up to the listing euphoria witnessed by some of its predecessors such as Burger King India or Mrs Bectors Food. Shares of Antony Waste Handling were trading at a grey market premium (GMP) of Rs 100-120, up 31-38 per cent, in the unlisted market over the issue price of Rs 315, according to analysts. The debut, they say, may invite tepid response from investors and may not match up to the stellar listing gains given by Burger King and Mrs Bectors.
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