Subscribe to ARSS Infrastructure with long-term view: Arihant
Arihant Capital Market has advised investors to subscribe to initial public offering of ARSS Infrastructure with long-term view.
By ET Bureau |
MUMBAI: Arihant Capital Market has advised investors to subscribe to initial public offering of ARSS Infrastructure with long-term view.
“ARSS Infrastructure carries out activities such as laying new rail tracks, construction of rail and road bridges, signaling/telecommunication work for railways, widening of roads, strengthening and repair of railway infrastructure, highways, bridges and irrigation projects.
Considering the P/E valuation, the company is trading at a P/E of 9.36x times on the lower side and 10.00x times on the higher side of its 9 months annualized FY 10 EPS of Rs. 44.30(LB) & Rs. 45.00(UB) respectively which we believe are at a discount as compared to its peers in the industry. Keeping in mind AIPL’s sizeable order book, strong sales and profit growth, and a secure client base in government contracts we recommend our investors to SUBSCRIBE to the issue with a long term view in mind. However, few pending litigations against the company and the promoters & work of scope limited to Eastern India only are some of the concerns to look for,” the report said.
Meanwhile, the ARSS Infrastructure Projects IPO has been subscribed over two times. As on February 9, till 3 pm, the IPO received 56.06 lakh bids with 2.61 lakh bids at cut-off price.
The company plans to use the proceeds to fund capital requirements for various joint ventures and also its future working capital requirements.
ARSS Infrastructure undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects. The company has entered into joint ventures with national and international players such as PT Adhikarya (Persero), Harish Chandra, Triveni Engicons, RITES, Kalindee Rail Nirman, Patel Engineering, Rohit Kumar Das, Backbone Enterprises and Atlanta.
The issue closes February 11, 2010.
“ARSS Infrastructure carries out activities such as laying new rail tracks, construction of rail and road bridges, signaling/telecommunication work for railways, widening of roads, strengthening and repair of railway infrastructure, highways, bridges and irrigation projects.
Considering the P/E valuation, the company is trading at a P/E of 9.36x times on the lower side and 10.00x times on the higher side of its 9 months annualized FY 10 EPS of Rs. 44.30(LB) & Rs. 45.00(UB) respectively which we believe are at a discount as compared to its peers in the industry. Keeping in mind AIPL’s sizeable order book, strong sales and profit growth, and a secure client base in government contracts we recommend our investors to SUBSCRIBE to the issue with a long term view in mind. However, few pending litigations against the company and the promoters & work of scope limited to Eastern India only are some of the concerns to look for,” the report said.
Meanwhile, the ARSS Infrastructure Projects IPO has been subscribed over two times. As on February 9, till 3 pm, the IPO received 56.06 lakh bids with 2.61 lakh bids at cut-off price.
The company plans to use the proceeds to fund capital requirements for various joint ventures and also its future working capital requirements.
ARSS Infrastructure undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects. The company has entered into joint ventures with national and international players such as PT Adhikarya (Persero), Harish Chandra, Triveni Engicons, RITES, Kalindee Rail Nirman, Patel Engineering, Rohit Kumar Das, Backbone Enterprises and Atlanta.
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The issue closes February 11, 2010.
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