This is one of the key factors which we consider for analyzing the stock for putting it into investment grade. Here we can see that the Cost of Acquisition is too cheap for the promoters.
Below is the image representing the types of pipes manufactured by the industry and also the pros and cons are also specified regarding the pricing, longevity of the products and the market share of each.
For the company agriculture and Infrastructure, the sector is key for growth. Also, the demand for the replacement of old pipes and GST implementation can be the crucial factor. Price of Crude Oil is important for raw materials and overall profitability.
Below is the comparison with their competitors. All the IPO cannot generate double returns on listing. Growth over the long-term can exponentially give returns to investors. Here the Operating Profit Ratio is around 13%.
[Prices on 18-12-19]
In conclusion, we are of the view that we will wait for the stock to get listed on the bourses. As were are not expecting the stock to give any stellar returns. Some of the pledged shares in promoter entities and exposure in the realty sector is our cause of concern as realty is down.
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