DAM Capital Advisors IPO VS Mamata Machinery VS Transrail Lighting VS Concord Enviro VS Sanathan IPO

Summary

This video provides a comprehensive breakdown of five IPOs opening on December 19, 2023. The presenter details each IPO’s key information, including issue types (OFS or fresh issue), market capitalization, P/E ratios, EPS, and expected grey market premiums (GMP). The analysis covers notable IPOs like Mamata Machinery, Dams Capital Advisors, Patel Engineering, Sanathan Textiles, and Concorde Avaro, highlighting their strengths, weaknesses, and potential returns. The speaker also shares tips for applying to multiple IPOs and maximizing chances of allotment, while stressing the importance of staying updated with real-time data to make informed investment decisions.

Takeaways

• 😀 Mamta Machinery Limited IPO opens on December 19th and runs until December 23rd, with a market cap under ₹2,300 Crore and a P/E ratio of 70.
• 😀 The Mamta Machinery IPO has an entirely Offer For Sale (OFS), with no fresh issue. Its expected listing date is December 27th.
• 😀 The Grey Market Premium (GMP) for Mamta Machinery is ₹46, with expected profits of ₹5,100 for Retail investors and ₹70,000 for HNI investors.
• 😀 Dams Capital Advisors IPO, also opening on December 19th, has a market cap of ₹22,800 Crore and a P/E ratio of 28.
• 😀 The Dams Capital Advisors IPO has an EPS of ₹10 and a strong return on equity (ROE) of 54%. The GMP is ₹38, with expected profits of ₹400 for Retail and ₹61,000 for HNI investors.
• 😀 Sanathan Textiles IPO, with a market cap of ₹2,700 Crore, opens on December 19th. It features a P/E ratio of 13 and an EPS of ₹23.
• 😀 Sanathan Textiles IPO is a mix of both OFS and fresh issue, totaling ₹550 Crore, with a retail lot size of ₹1,766.
• 😀 Corcorde Evawro IPO, opening December 19th, has a market cap of ₹1,450 Crore and a P/E ratio of 11. It aims for a valuation that could appeal to investors seeking reasonable prices.
• 😀 The Corcorde Evawro IPO has an EPS of ₹56, but its Grey Market Premium (GMP) has not yet been reported. Retail lot size is ₹1,450.
• 😀 Patel Engineering IPO, opening on December 19th, has a market cap of ₹3,000 Crore and a P/E ratio of 16. It’s an entirely OFS offering.
• 😀 Retail investors in Patel Engineering can expect a GMP of ₹27, with profits of ₹2,700 for Retail and ₹50,000 for HNI investors. The expected listing date is December 27th.

Q & A

What is the main focus of this video?

The video focuses on providing a consolidated overview of five IPOs opening on December 19, 2024, and offering key insights on their financials, market valuations, and expected returns.

How many IPOs are discussed in this video?

The video discusses five different IPOs opening on December 19, 2024.

What is an OFS, and how is it relevant to the IPOs mentioned?

An OFS (Offer For Sale) refers to shares that are being sold by existing shareholders, rather than issuing new shares by the company. All five IPOs discussed in the video are OFS, meaning the companies are not issuing new equity but instead selling existing shares.

What is the P/E ratio, and how does it affect the IPO evaluation?

The P/E (Price-to-Earnings) ratio is a measure of a company's valuation, calculated by dividing its current share price by its earnings per share. A higher P/E ratio typically suggests a higher valuation, which can impact investor interest. In this video, P/E ratios for the IPOs are compared with industry peers to assess whether the valuations are reasonable.

Which IPO has the highest expected GMP (Grey Market Premium)?

The Mamata Machinery Ltd. IPO has the highest expected GMP of ₹46, based on sources mentioned in the video.

What are the key metrics to look at when considering an IPO for investment?

Key metrics include the IPO size, P/E ratio, earnings per share (EPS), return on equity (ROE), lot size, and the expected grey market premium (GMP), as well as the overall market sector outlook.

What is the expected profit from the retail category for Mamata Machinery Ltd. IPO?

For the Mamata Machinery Ltd. IPO, the expected profit for retail investors is ₹5,100, based on the current GMP of ₹46.

What is the significance of the expected returns in relation to the retail lot sizes for each IPO?

The retail lot size determines the minimum investment an individual can make in an IPO. Larger lot sizes, like those seen in some IPOs, may require a higher initial investment. The expected returns, based on GMP and overall IPO performance, help investors gauge the potential profitability relative to the size of their investment.

Which IPO is expected to have the highest return on equity (ROE)?

Dams Capital Advisors Ltd. is expected to have the highest return on equity (ROE) of 54%, which is considered excellent and indicates strong profitability relative to shareholders' equity.

Why is it important to apply to multiple IPOs when several are opening at the same time?

Applying to multiple IPOs increases the chances of allotment, especially when there are multiple options with high demand. Investors may need to apply under different names or Demat accounts to improve their likelihood of receiving an allocation.