Shipping Corporation of India Ltd - IPO Note : SUBSCRIBE says Ventura

Issue Details
Listing NSE & BSE
Offer Open date 30th Nov 2010
Offer Close date 3trd Dec 2010
Promoters President of India
Price Band 135 -140
Industry Shipping
Valuation & Recommendation
At the upper end of price band of Rs.140 the stock is valued at a P/E of 8.9x and P/BV of 0.9x. The industry composite PE stands at 14x. Issue pricing is considered aggressive given the stock is currently quoting just above the issue price. However, with reasonable valuation, a sustainable business model and traction in revenues, Ventura recommend SUBSCRIBE to the issue for long term gains.
Source : Ventura Research report

Our take : Listing gains are uncertain. There are few risks and cyclical nature of business makes it unattractive. Hence investchips don't recommend this issue.


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