The Rs 56 crore IPO of cables manufacturer Company Shilpi Cable Technologies is open for subscription. Wealth Bazaar Financial Managers has recommended avoiding the issue, citing a small player in radio frequency cable segment with limited operational history, high competition from competitors, intense exposure to volatility in raw material prices, highly debt owned company and highly expensive valuations, in its research report dated March 21
Having a sales figure of 165 Crores in this industry is not a big deal. At the moment, they are working with Ericsson, Tata & some other telecom operators.
The company is saying that the debt is due to the long-term finance. It’s a new project and started just two years back. In coming years, it will lower down.
Ratings Agencies like ICRA, CRISIL are also not bullish on Shilpi Cable as an IPO.
For investors, one should accumulate the stocks from secondary market rather than looking at primary markets.
Avoid Shilpi Cable IPO
Regards
Mayank Gupta
Wealth Bazaar Financial Managers
Wealthbazaar.in
Having a sales figure of 165 Crores in this industry is not a big deal. At the moment, they are working with Ericsson, Tata & some other telecom operators.
The company is saying that the debt is due to the long-term finance. It’s a new project and started just two years back. In coming years, it will lower down.
Ratings Agencies like ICRA, CRISIL are also not bullish on Shilpi Cable as an IPO.
For investors, one should accumulate the stocks from secondary market rather than looking at primary markets.
Avoid Shilpi Cable IPO
Regards
Mayank Gupta
Wealth Bazaar Financial Managers
Wealthbazaar.in
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