IIFL Wealth Management Ltd
IPO provides good retail exposure to the promising domestic defence sector and available at attractive valuations of 18.1 times FY17 price to earnings (PE). “With average margins of 18% over last five years and return on equity (RoE) of around 15 over the same period, it has consistently delivered the goods, even during the slowdown phase in shipbuilding industry,”
Motilal Oswal Securities Ltd (MOSL)
Continuous focus on high margin repair business, strong positioning in west coast of India, healthy order book and negligible debt with cash and bank balance of Rs2,000 crore and decent ROEs and return on capital employed (ROCE) are key strengths of Cochin Shipyard, “At higher end of price band, the issue is attractive,” MOSL said
Prabhudas Lilladher Pvt. Ltd.
The strong net cash balance sheet, strong order pipeline and option value of bagging further air craft carriers could provide multi-year visibility of earnings. At the upper end of the issue price, market capitalization works out to be Rs.5,880 crore
Angel Broking
The issue is reasonably priced on the back of healthy order book with execution capability and experienced management. “Despite cyclical business it has maintained net cash positive balance sheet and eased working capital cycle from over 195 days in FY2012 to current 59 days,”
Sharekhan Ltd.
“Consequently, CSL is not comparable with listed private sector shipyard companies. CSL is expected to be available at 18.8x P/E multiple (EPS calculated on post issue number of shares) and 2.9x P/B on FY2017 financials at the upper price band of Rs.432,”
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