Latest IPOs of September; What should you do after listing?


Soon, there will be more listed companies on Exchanges for trading. Few of them includes Dixon technologies, Bharat Road Network and Matrimony and Capacit’e Infraprojects. All of them are engage in very different segments and have different revenue structures. Below, i have shared my views on few IPOs in brief.

Dixon Technologies

Dixon Technologies is engage in a business of manufacturing electronic products for the big companies like Panasonic, Phillips etc. Promoter of the company, Sunil Vachani (Executive Chairman) holds largest number of shares in company as individual while another major shareholder Motilal Oswal is selling its part through offer for sale. In FY17, Dixon tech reported revenue of Rs2,457 crore and net profit of Rs50 crore. For the same year, margins of company stood at 3.8 percent.

The company operates in those segments where i think potential and opportunity level is very high. And i think the listing would be a great one. Therefore, i think one can try to book half of their profit and can hold remaining part with short-term view. But one who follow this advice must keep a close eye on what is going on in company.

Bharat Road Networks

Incorporated in 2006, Bharat Road Networks is a road BOT (build-operate-transfer) company, focused on development, operation and maintenance of roads & highways projects. SREI Infrastructure finance is the corporate promoter of the company.

From last few years, company has been posting losses with unstable revenue which indicates the growth story of company before Issue. I don’t see any major reason to hold it after IPO listing. Therefore, one can definitely book profit or may be loss on listing day. For short-term, i don’t think that stock would perform in market. However, there are chances that fundamentals of the company may be improved in long-term.

Bharat Matrimony

Matrimony.com which operates under the name of Bharat Matrimony runs an online match-making business in India. Company has also started providing services to different marriages to expand its business.

Company has turned into profitable business in FY17 after sharp reduction in expenses. However, company has gave a special discount to retail investors to boost its subscription. Although, i would advice to book profit in initial days of the listing because i don’t see any great potential in stock for short-term. But for long-term, i think there are some opportunities for company to expand its business to a new level.

Capacit’e Infraprojects

Capacit’e provides end-to-end construction services, including constructing concrete building structures as well as composite steel structures. It also provides mechanical, electrical and plumbing (MEP) and finishing works.

In past years, Company has delivered a great growth in revenue and Profit. It is engage in Infrastructure sector where i think potential level is very high. However, company is good to hold after listing. Therefore, one can try to book half of their profit and can hold remaining for short-term.

 

 

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