Avoid Pipavav IPO: KR Choksey
KR Choksey says there is lack of information with regards to the operating and financial performance of Pipavav Shipyard Ltd, as it commenced operations only at the beginning of this fiscal year.
By ET Bureau |
MUMBAI: KR Choksey says there is lack of information with regards to the operating and financial performance of Pipavav Shipyard Ltd, as it commenced operations only at the beginning of this fiscal year.
The brokerage further states that it is unfair to assume that the financial performance of Pipavav Shipyard would be in-line with established peers like ABG Shipyard and Bharati Shipyard. At the Rs 55-60 per share price band, the stock would trade at higher valuations compared to peers.
KR Choksey has used the financials of FY11 and its peers for comparison. The brokerage recommends avoiding the issue.
The brokerage further states that it is unfair to assume that the financial performance of Pipavav Shipyard would be in-line with established peers like ABG Shipyard and Bharati Shipyard. At the Rs 55-60 per share price band, the stock would trade at higher valuations compared to peers.
KR Choksey has used the financials of FY11 and its peers for comparison. The brokerage recommends avoiding the issue.
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