'Subscribe' to Techpro Systems IPO:Angel
Angel Broking is of the view that Techpro Systems is available at discount as compared to peers and has a robust track record. The brokerage has advised to ‘Subscribe’ to the issue.
By ET Bureau |
MUMBAI: Angel Broking is of the view that Techpro Systems is available at discount as compared to peers and has a robust track record. The brokerage has advised to ‘ Subscribe’ to the issue.
At the upper price band, Tecpro is projected to trade at a P/E and EV/EBDITA of 16.5x and 8.3x its FY2010 earnings, respectively. When compared with its immediate competitors, viz, Mcnally Bharat and TRF, the scrip is available at a discount of ~10-15% on FY2010 earnings.
In addition, over the past five years the company has grown at a scorching pace along with successfully entering the BoP-EPC segment. As and when Tecpro begins to accumulate and execute larger size BoP projects going ahead, it will be able to command premium valuations on superior growth and profitability margins.
The successful execution of few BoP projects over the next couple of years may also result in Tecpro exploring the feasibility of taking up complete EPC for power plants (ie BTG + BoP), which would place it in league with BGR Energy. We recommend a Subscribe view on the IPO,” the report said.
Tecpro is accessing the capital market with an IPO of 75.5 lakh equity shares of Rs10 each in the price band of Rs 340–355 per share. The IPO comprises fresh issue of up to 62.5 lakh equity shares and an offer for sale of up to 13 lakh equity shares by Metmin Investments Holdings.
The IPO opens on September 23, 2010 and closes on September 28, 2010. The issue proceeds would be utilised to fund working capital requirements and general corporate purposes.
At the upper price band, Tecpro is projected to trade at a P/E and EV/EBDITA of 16.5x and 8.3x its FY2010 earnings, respectively. When compared with its immediate competitors, viz, Mcnally Bharat and TRF, the scrip is available at a discount of ~10-15% on FY2010 earnings.
In addition, over the past five years the company has grown at a scorching pace along with successfully entering the BoP-EPC segment. As and when Tecpro begins to accumulate and execute larger size BoP projects going ahead, it will be able to command premium valuations on superior growth and profitability margins.
The successful execution of few BoP projects over the next couple of years may also result in Tecpro exploring the feasibility of taking up complete EPC for power plants (ie BTG + BoP), which would place it in league with BGR Energy. We recommend a Subscribe view on the IPO,” the report said.
Tecpro is accessing the capital market with an IPO of 75.5 lakh equity shares of Rs10 each in the price band of Rs 340–355 per share. The IPO comprises fresh issue of up to 62.5 lakh equity shares and an offer for sale of up to 13 lakh equity shares by Metmin Investments Holdings.
The IPO opens on September 23, 2010 and closes on September 28, 2010. The issue proceeds would be utilised to fund working capital requirements and general corporate purposes.
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