Tuesday, September 29, 2020

Mazagon Dock Shipbuilders IPO & Its Valuations

Mazagon Dock Shipbuilders is a defence public sector undertaking (PSU) shipyard under the department of defence production, Ministry of Defence (MoD) with a maximum shipbuilding and submarine capacity of 40,000 dead weight tonnage (DWT). The company is engaged in the construction and repair of warships and submarines for the MoD and is used by the Indian Navy and commercial clients.
It is a wholly-owned Government of India company, conferred with the "Mini Ratna-I" status in 2006.
The company's business has 2 key operating divisions:

§  Shipbuilding division: This division undertakes building and repairing of naval ships.

§  Submarine and heavy engineering division: This division includes building, repairing, and refitting of diesel electric submarines.

Here are some quick details about this offer:Issue period: 29 September 2020 to 1 October 2020IPO Size: Rs 4.4 billion

Price band: Rs 135 to Rs 145 per equity share

Bid lot: 103 shares and in multiples thereof

Retail Category: Not less than 35% of the net offer

Object of the Issue: The object of the issue is to carry out the divestment of 30,599,017 equity shares by the Government of India constituting 15.17% of the company's pre-offer paid up equity share capital. While the company has also stated the objective of the IPO is to achieve the benefits of listing equity shares on stock exchanges, it will not receive any proceeds from the offer as the entire offer is offer for sale (OFS).

The profit after tax for fiscal 2017, 2018 and 2019 and 2020, were Rs 598.30 crore, Rs.496.20 crore and Rs 532.50 crore and Rs 477.10 crore, respectively.

We have valued the Price of each share based on EPV method and its comes at X3.3 of its FY2020 earnings. Mazagon Dock Shipbuilders‘s share is being offered at ~330% Premium to its FY2020 Earnings at the highest offer price of Rs.145.00.

Source : Various Media Reports and RHP of the company.

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

 


No comments:

Post a Comment

Thanks for Your Valuable comments. It will make Us to Serve You in Better Way. For Any STOCKS Query ,Please Call NiftyNext +91 880 2230 836.

Subscribe to: Post Comments (Atom)

Disclaimer

The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip. www.niftynext..com does 't take any Responsibility for any losses arising from using the Stocks Recommendations.
We( WWW.NIFTYNEXT.COM) are not Registered with Any Regulatory Body in India ie SEBI,NSE,BSE,AMFI or Any Otheres.

Blog Archive