Uma Exports to debut on Thursday. What could be the listing price?
UMA exports, agricultural product traders and commodities, are expected to see a muted list despite positive market sentiment as a lower subscription than expected for the initial public offering (IPO) and a competitive environment with low margins can weigh on performance.The company managed to raise Rs 60 Crore through its first public issues that subscribe to 7.67 times over March 28-30 2022. This issue received a good response from investors with retail portion subscription 10.11 times, while quality institutional buyers and non-institutional investors Bid 2.81 and 2.22 times the specified quota, respectively.
The company will take advantage of the problem of results for working capital requirements. The band price for the offer is Rs 65-68 per equity stock. Considering the demands of a lower subscription than the estimated for his IPO, we expect a list of listings that are turned off. We believe that being a smaller sized IPO, the inconsistency of his historic financial and aggressive price determination has failed to increase the interest in the primary market,” said Prashanth Tapse, Vice President (Research) at Mehta Equities.
Asta Jain, a senior research analyst at Hem Securities, told MoneyControl that he expects the status quo to UMA exports. In the top price ribbon, the company sought market capitalization of Rs 229.9 Crore while the export of Sakuma colleagues was quoted at the market limit of more than Rs 330 Crore. UMA exports are involved in trade and marketing of agricultural products and commodities such as sugar, spices such as dry red chili, turmeric, coriander, cumin seeds, grasslands such as rice, wheat, corn, sorghum, pulses and farm foods such as soybean food and cake de -Oiled rice.
All brokerage houses have a ‘avoid’ rating on this problem considering expensive assessment, high debt in its books and low margin profiles.”Considering the EPS adapted to FY21 (earnings per share) amounting to RS 3.63 on the post-issue base, the company will register on P / E (price income) 18.71x with a close market of RS 229.9 Crore while it is Peer, the export of Sakuma is traded on P / E from 16.20x, “said Marwadi Financial Services, which has set a ‘avoid’ rating to the IPO because the company operates in a competitive environment with low margins, depreciation and amortization or EBITDA margins, namely 2.83 percent on FY21) and not Offers a lot of value to investors.
The Hem Securities also said that despite the ratio of companies such as margins and refunds of shareholder funds better than their colleagues, seeing business profiles and debt, they recommend ‘avoid’ on this problem.On September 202, the total fund-based debt circulated company was Rs 56.28 Crore, against Rs 38.62 Crore on March 202. In addition to debt for existing company operations, it may be subject to further debt during its business, said Hem Securities.
Revenue from the operation has grown in CAGR 51.10 percent during TA19 to FY21, while profit grows at the annual growth rate of compounds (CAGR) of 105.45 percent and EBITDA in CAGR 52.76 percent in the same period, but the growth of margins posted CAGR only 2 basis points.
