We have already updated you that Aqua Logistics is open for subscription from today onwards. Being an investor, everybody has a question in mind, whether to invest in the IPO or not.
Angel Broking has come out with a research report on Aqua Logistics IPO (initial public offering). According to the report released from the firm, the investors are recommended to avoid the IPO.
The IPO of Rs 150 crore of Mumbai based Aqua Logistics opened for subscription and the price band is fixed at Rs 220-230 per share. It is engaged in the business of freight forwarding services with agents to provide end-to-end solution to its clients.
Angel Broking report on Aqua Logistics IPO:
The company has been on a high growth trajectory since the last three years due to its low base. However, this may not be the case going forward especially in the MTO Segment. Nonetheless, we have assumed 50% Earnings CAGR (Compound Annual Growth Rate) over FY2009-12E on account of Margin expansion due to higher contribution from the Project Cargo and Contract Logistic Segments and overall improvement in the trade scenario. At the lower price band, the IPO is available at 13.4x FY2012E EPS, which is in line with Allcargo, but at a premium to GDL (Gateway Distriparks) on our estimated FY2012E EPS. We believe ALL should trade at a discount to Allcargo and GDL given that these players have a proven track record, diversified portfolio of services and stronger balance sheets. Hence, we recommend an avoid on the IPO.
To read the full report from Angel Broking Click on the attachment: Aqua Logistics – Research Report.pdf
Disclaimer: The views and investment tips, views expressed in the report are that of Angel Broking, and not that of the website or its management. Equitipz.com advises users to check with certified experts before taking any investment decisions.
What are your personal views on this IPO? What have you decided whether to invest your money in this company or not? Please share your views in the comment box below.
