Galaxy Surfactants IPO

Logik

Active Member
#2
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............ Galaxy surfactants IPO..................
(global supplier to global brands )
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Product portfolio :
1) Surfactants (65%)
2) Speciality chemicals (35%)
Only 34% Revenue coming frm india rest 66% from export.
- Good business segment
Customers : L'Oréal, Himalaya, P&G, dabur, HUL etc

Revenue CAGR = 9%
PAT CAGR = 24%
EBITDA margin = 12%
RonW = 28%
PAT Margin = 6.7%
M. CAP = 5247cr
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No of shares 35454752
(before and after issue same due to complete OFS)
2017 PAT : 146cr

EPS : 41+ => PE = 36(@1480)

2018 half year PAT = 75cr on 1196cr sales with margin 6.3%
Full yr possible PAT = 148cr on 2350cr sales with same 6.3% margin

i.e EPS = 42 => PE : 35(@1480)

Margin slightly going up from 4.5%(2014)
To 6.7%(2017)

@7% margin PE = 32
@8% margin PE = 28
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So here we hv again ipo with slight margin change can change PE big time type just after after Shankara, prataap, dixon, amber

So valuation may be given based on sales.

Sales of 2018 =2350cr,

Now here no comparable peer but if you see specialty chemical segment or FMCG then it's difficult to find good growth companies at M.cap/sales <= 3x.

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So @3x P/S = 7050 m.cap (PE = 48)
i.e Price = 1988 rs ( 1 yr tgt after list)

@2.5x P/S = 5857cr M. Cap
i.e Price = 1655 rs *(possible Listing) (PE =39)
_________________________________________
RII form reqd 2.2L +, so if 7-8 lakh come,
Allotment ratio 1/3 type(Fair chances)
______________________________________
Concerns :
- Patanjali
- Max revenue comes from top most customers
- 2011
- low Top line growth
_______________________________________
Conclusion:-

One may subscribe to this global exporter or may wait for last day subscription. expected listing gain 1-1.5 FD.
 
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