Subscribe to ARSS Infrastructure IPO: Hem Securities

Published on Fri, Feb 05, 2010 at 20:26 | Updated at Sat, Feb 06, 2010 at 14:09 | Source : Moneycontrol.com

Hem Securities has come out with a research report on ARSS Infrastructure projects initial public offering (IPO). The research firm has recommend investor to subscribe the issue.

Orissa based infrastructure company is entering capital market with an IPO of Rs 103 crore on February 8. The company has the fixed price band at Rs 410-450 per share. The issue will close on February 11, 2010.

Hem Securities report on ARSS Infrastructure projects IPO -

The company is bringing the issue at price band of Rs 410-450 per share which will turn into P/E multiple of 9.11-10.00 at post issue (at higher band of Rs 450/share) annualized EPS of Rs 45 per share. The company has posted the robust financial growth from last few years as topline, EBIDTA and bottomline of company, all three has grown at a CAGR of more than 100% from FY05 to FY09. Even at the net profit margin front, company has outperformed by posting the NPM of more than 8% in
FY09.

With the robust order book and strong growth plans, company seems to be reasonably priced at present level. Hence we recommend investor to subscribe the issue.

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To read the full report click on the attachment

Attachments : ARSS - HEM.pdf