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Shree Renuka Sugars IPO Valuation / Analysis

Discuss Shree Renuka Sugars IPO Valuation / Analysis at the Initial Public Offers (IPO's) within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Shree Renuka Sugars Ltd has registered an EPS of Rs.20.43 for the nine months ending ...


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Old 11th October 2005, 12:16 AM
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Default Shree Renuka Sugars IPO Valuation / Analysis


Shree Renuka Sugars Ltd has registered an EPS of Rs.20.43 for the nine months ending June 30, 2005 . The company has substantially improved its EPS, which stood at Rs.4.17 for financial year ending September 2004. SRSL would enter into trial production in November 2006 and expects to start commercial production by December 2006. Thus the growth for year ended September 2006 will generally be in line with the industry. The real return for the company will come in FY 07 when the benefits of capacity expansion would become visible.

The issue is currently priced at 15 ?17 times its FY05 expected earning based on its diluted post issue equity capital. However, the long-term buoyant outlook of the sugar industry and the exponential growth owing to increased capacity makes the company reasonably attractive in the long-term in the current price band. The investors may look into the issue both from long-term investment perspective as well as deriving benefits of listing gains.
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Old 11th October 2005, 12:57 AM
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Default Re: Shree Renuka Sugars IPO Valuation / Analysis

Shree Renuka Sugars IPO subscribed 6.12 times

Shree Renuka Sugars IPO opened on October 7 for subscription. The issue has been subscribed 6.12 times till yesterday, as per the NSE website. The OIBs portion has been subscribed 10.19 times.


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