Not Getting IPO allotment, here is the chance to Invest in your Favorite Stock.

Not Getting IPO allotment, here is the chance to Invest in your Favorite Stock.

Last month of the Indian stock market was IPO month. 10 new companies came with Its initial public Offering, here is the detail:-

In this month, we see the volatility in the market. Nifty made its new high of 15336 on 12^th march and the correction of 1071 Point in just 10 days with a low 14264. Because of the volatility in market, Listing gain of new IPOs was impacted. Most of the companies listed in discount after getting good subscription:-

As mentioned in the above chart, MTAR, Laxmi Organic and Easy Trip the companies who gets hundred plus subscription didn’t give good listing gain to its investors. These all above companies have potential to give good return to its investor in upcoming period.

Now we will discuss about this.

 

My Point of View

We can see in past year investors get good listing gains who got allotment, but it didn’t mean that those who didn’t get allotment cannot get returns. We need to see the prospects of the company, its future vision, fundamentals, market share, product and last but not the least its Balance sheet and Profit & Loss Statement. If you are sure about a company’s aspect then you can bet on it even after not getting allotment.

Let’s discuss the companies who has strong fundamentals and future vision:-

1.      Railtel

Market Price:- 127.5

RailTel was formed in September 2000 with the objective of creating nationwide broadband, telecom, and multimedia network, to modernize train control operation and safety system of Indian Railways.  RailTel's network passes through around 5,000 stations across the country, covering all major commercial centers. We can see some correction in upcoming days, but you can invest in for long term.        

  Strengths

·         Rising Net Cash Flow and Cash from Operating activity

·         Good quarterly growth in the recent results

·         Effectively using its capital to generate profit - RoCE improving in last 2 years

·         Growth in Net Profit with increasing Profit Margin (QoQ)

·         Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

·         Company with No Debt

·         Book Value per share Improving for last 2 years

 

2.      Laxmi Organic

Market Price:- 186.6

Laxmi Organic is listed on 25-03-2021 and closed with Nearly 27% jump in debut trade. 

Strengths

·         Company with Low Debt

·         Improving Cash Flow from operation for last 2 years

·         Improving Net Cash Flow for last 2 years

·         Company with Zero Promoter Pledge

Weaknesses

·         Companies with growing costs YoY for long term projects

·         RoCE declining in the last 2 years

·         ROA declining in the last 2 years

·         Annual net profit declining for last 2 years

·         Lot of Competition

 

3.      MTAR Technologies

Market Price:- 1016.

MTAR Technologies is the maker of nuclear, defense and aerospace equipment. MTAR is the top second company after Hindustan Aeronautics Ltd who make product of defense and aerospace equipment. They have big client names like ISRO, NPCIL, DRDO, Bloom Energy, Rafael, Elbit, among others.

 

Strengths

·         Promoter holds adequate holding in company

·         Company with low Debt

·         company able to meet its working capital requirements

·         Increase in revenue in YOY basis.

 

Green Trade

Munish Mahajan