QIB: 54.27 times
HNI: 6.96 times
Retail: 5.92 times
Overall: 19.96 times

Scrip: Eicher Motors Limited
CMP: Rs.26,500
Recommendation: BUY
Horizon: Long Term (1 to 2 years)

Company Background
Eicher Motors Limited (EML) (BSE: 505200, NSE: EICHERMOT Bloomberg: EIM IN Reuters: EICH.NS) is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. The world’s oldest motorcycle brand in continuous production, Royal Enfield has made its distinctive motorcycles since 1901. Focused on bringing back simple, yet engaging and accessible motorcycling, Royal Enfield operates in India, and over 40 countries around the world. With modern development facilities in Leicestershire, UK and Chennai, India, Royal Enfield makes its motorcycles in Tamil Nadu for the world

In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo - Volvo Eicher Commercial Vehicles Limited (VECV) - which is driving modernization in India's commercial vehicle space, and in other developing countries. VECV has a complete range of trucks and buses from 5-49 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group. Since 2012, Eicher has an equal joint venture with US-based Polaris Industries Inc - Eicher Polaris Private Limited - and introduced the Multix 3-in-1 vehicle

Financials

• The company has managed 593450 units of Royal Enfield which is quite impressive by any standard
• At FY18E earnings, the company would be trading at a PE ratio of around 33.5 which is substantially justified given the growth prospects
• Despite depreciation provision, net profit has been impressive for the company
• EBIDTA Margins stand close to 32 percent which shows strong relative position
• Company continues to enjoy strong presence across market with around 24% of market share in FY17 and a similar number expected in the current year

Future prospects

• Demand for Royal Enfield has historically remained healthy and is expected to continually do so with constant waiting period for its flagship "Classic 350" variant
• Company is planning to launch 3 new models in Apr'18 which will further garland the demand meter
• Company has re-iterated production target of approximately 825000 units in current financial year. It is however expected that the production would end up being way above this ballpark figure
• There are 30 exclusive dealers of Royal Enfield in international markets and the company is constantly expanding its footprint both in India and abroad

Synopsis
Considering the continual strong position of the company and maintenance of its market position, the strong track record and visible growth prospects, it is recommended to buy the stock at current levels with objective of incorporating it as a strong pillar in the portfolio with a long term time horizon of 6 months to 2 years

Galaxy Surfactants Limited is a Mumbai based manufacturer of surfactants and other specialty ingredients for the personal care and home care industries. The ingredients company manufacture are commonly used in consumer-centric personal care and home care products like skin care, oral care, hair care, cosmetics, toiletries and detergent products. Galaxy Surfactants product portfolio includes over 200 product grades, which are marketed to over 1,700 customers in 70 countries

Galaxy Surfactants products are classified in 2 categories:
1. Performance Surfactants: This includes anionic surfactants and non-ionic surfactants.
2. Speciality Care Products: This includes amphoteric surfactants, cationic surfactants, UV filters, preservatives, preservative blends and surfactant blends, speciality ingredients such as mild surfactants, syndet and transparent bathing bars and proteins, fatty alkanolamides and fatty acid esters, and other care products.

Indian IPO Blog presents "Know your stock" 

You have these set of stocks in your portfolio since long and are wondering if your should hold them or you're better off switching onto something more profitable. Investors often miss out on acting upon the emerging opportunities either because of lack of research or lack of time

Indian IPO Blog introduces a new service where now you can request focused analysis on a specific stock or stocks of your choice. Our team would conduct in-depth analysis and research on specifics of the stock and present you with insightful reports to help make a better decision on whether to buy, hold or sell stock

How it works


What you get

Apollo Micro Systems, which caters primarily to the defence and aerospace sectors, will debut on the bourses on Monday. The issue price for its initial public offer was Rs 275 per share

Apollo Micro Systems Limited is Hyderabad based company engaged in the business of electronic, electro-mechanical, engineering designs, manufacturing and supply. Company design, develop and sell high-performance, mission and time critical solutions to Defense, Space and Home Land Security for Ministry of Defense, government controlled public sector undertakings and private sectors.

Apollo Micro Systems offers custom built COTS (Commercially off-the shelf) solutions based on specific requirements to defense and space customers. Company has participated in several Indigenous Missile programs, underwater electronic warfare, underwater missiles, surface to air missiles, nuclear missile programs, surface to surface missile programs, indigenous submarine programs UAV’s long and short endurance, ships, space programs.

Stay tuned to Indian IPO Blog and Indian IPO Blog Whatsapp Group for latest updates on Apollo Micro Systems IPO

Galaxy Surfactants Limited is Mumbai, India based manufacturer of surfactants and other specialty ingredients for the personal care and home care industries. The ingredients company manufacture are commonly used in consumer-centric personal care and home care products like skin care, oral care, hair care, cosmetics, toiletries and detergent products.

Galaxy Surfactants product portfolio includes over 200 product grades, which are marketed to over 1,700 customers in 70 countries. Galaxy Surfactants is leading manufacturer of these ingredients. Almost all major FMCG companies in India are Galaxy Surfactants customers. This includes Cavinkare Private Limited, Colgate-Palmolive (India) Limited, Dabur India Limited, Henkel, Himalaya, LOREAL, Procter & Gamble Home Products Private Limited, Reckitt Benckiser and Unilever

Galaxy Surfactants IPO Details
Issue open on: Jan 29, 2018
Issue closes on: Jan 31, 2018
Issue Size: 6,331,674 Equity Shares of Rs.10
Price Band: Rs.1470 to Rs.1480 per equity share
Bid Lot: 10 Equity Shares and in multiples thereof
Listing At: BSE and NSE

Newgen Software Technologies is Delhi-based Software Product Company. Newgen offers product and platform that enables organizations to rapidly develop powerful software applications. Company mainly offers products in ECM and BPM space. Company sells its products through direct sales and through its 300 strong channel partners globally.

Newgen Software has four patents registered in India and 27 outstanding patent applications in India and one outstanding patent application in the USA. Newgen has over 450 active customers in over 60 countries. These customers are served by over 265 employees.

Newgen Software platform comprises of:
1. OmniDocs Enterprise Content Management (ECM) Software (to digitization of enterprise content and information)
2. OmniFlow Intelligent Business Process Suite (BPM) (to manage a complete range of business processes)
3. OmniOMS Customer Communication Management suite (unified communication platform to improve communication with customers)

The IPO would be open between January 16 and January 18, 2018. Shares are offered in a Price Band of Rs.240/- to Rs.245/- a share with a bid lot of 61 equity shares and in multiples thereof

The red herring prospectus for the upcoming IPO of Amber Enterprises Limited can be downloaded from link given below :

• Draft Prospectus with SEBI 
• Red Herring Prospectus