Apex Frozen Foods: Brokerage Views & Run up to IPO

Apex Frozen IPO
This post on Apex Frozen  IPO tries to bring out consolidated brokerage views opinions, IPO Review / Analysis, Note/ reports and recommendation of brokerages , Analyst, Business New papers, Management views, information on Anchor investors, Subscription etc on Apex Frozen Foods IPO and shall be updated continuously till the closure of the issue. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Apex Frozen IPO or not.

Related Posts:  Apex Frozen Foods IPO Review

Apex Frozen Foods IPO Allotment Status:  Click Here

Apex Frozen Foods IPO: Grey Market Premium etc.

21/08/17 Grey Market Premium Rs.20-25: Not much activity as many brokers donot deal in this scrip due to nature of business.

Subscription: Apex Frozen Foods IPO  ( x times)
  QIB NII Retail Total
Day 3  1.91 7.82  8.53  6.14
Day 2      0.45  2.90  1.46
Day 1 0.18 0.79 0.40

Complete Anchor List

Apex Frozen IPO anchor book allocation saw institutional investors buy 2.49 million shares at the upper end of the price band. Institutional investors who participated in the anchor book allocation included Reliance Mutual Fund, HSBC Mutual Fund and Invesco Mutual Fund. Click here for Complete Anchor List

Consolidated opinion of Brokerages, Analysts, Business New Paper Reports, Management Views on Apex Frozen Foods IPO .

(Very Few Brokerage reports are available as many brokers due to nature of business of company refrain from any dealing in the Apex Frozen IPO)

Capital Market: ” Score 38/100 ; For FY 2017, net sales were up 16% to Rs 699.15 crore. The OPM stood at 6.5% which restricted the OP growth to 11% to Rs 45.30 crore. Other income shot up 123% to Rs 10.57 crore. With a 8% increase in interest cost to Rs 11.22 crore and 27% increase in depreciation to Rs 6.27 crore, PBT was up by 27% to Rs 38.38 crore. After providing total tax of Rs 13.97 crore, PAT for FY 2017 stood at Rs 24.41 crore, up by 27% YoY. EPS for FY 2017 on diluted equity works out to Rs 7.8.

At a higher price band of Rs 175, the scrip is offered at P/E multiple of around 22.4 times FY 2017 earnings. The nearest comparable listed player is Avanti Feeds which is trading at P/E of 42 times FY17 consolidated EPS. However, Avanti is much larger and fully integrated player with track record of fast growth and is a joint venture with Thai Union Frozen Products PCL, the world’s largest seafood processor”

Rudra Shares:
“Strong growth in Revenue & profitability of the company with growing demand of shrimp business, its increase value added products portfolio, ability of the company to expand customer base as well as setting up of a new unit of 20000 MTPA capacity at East Godavari District, Andhra Pradesh attracts the company’s share price. Eyeing on its valuation, Apex P/E works out at 17.21x (at upper end) & is available at attractive valuations amongst its peers. We recommend to SUBSCRIBE for this IPO.”

GEPL Capital: “Apex Frozen Foods Limited (“Apex”) stands to gain from operating leverage. At a P/E of 17.20xs of FY17 Earning. We believe that Apex demands a discount to its domestic peers. We assign a Subscribe rating to the IPO.”

Choice International: “Subscribe with Caution;At the higher price band of Rs. 175 per share, AFFL’s share is valued at a P/E multiple of 22.4x (to its restated FY17 EPS of Rs. 7.8), which is at a  discount to the peer average of 38.5x”

Ashika Direct: “On financial front, company has shown strong performance with revenue growth of 29% CAGR during FY13-FY17. EBITDA during the same period grew at a CAGR of 20% while net profitability grew at 27% CAGR. The issue consists
of both fresh issue and offer for sale from promoters. Company would utilize the IPO proceeds towards setting up a new shrimp processing unit with a proposed capacity of 20,000 MTPA at Andhra Pradesh for a cost of Rs 90.15 crore. The new facility will augment the company’s processing capacity from the current levels of 9,240 MTPA, thus would boost the revenue in coming years. Management intends to increase its exposure in ready to eat segments where margins are comparatively higher, thus the margins are likely to improve in near future. Company’s export accounts ~94% of total revenue earned and during FY17, it has witnessed a steady growth of 4% YoY in export volume at 9,898 tonne with 10.6% YoY increase in blended realization at USD 10.4/kg (Considering USD/INR at Rs64). There will be equity dilution of 23.2% which makes the valuation looks rich at upper price band at P/E multiple of 22.4x and diluted RoNW of 10.9%. However, it is expected that the 20,000 MTPA capacity expansions by the company would augment its earnings growth going ahead and the future earnings growth would support its premium valuation. Thus we recommend our investors to SUBSCRIBE the issue from a long term investment perspective.”

Jain Matrix : “This IPO offering is rated BUY, and investors can invest with a 2 year perspective”

Economic Times: Apex Frozen Foods hits IPO mart tomorrow; can it rewrite Avanti Feeds’ success story?   Complete article

Bloombergquint: Apex Frozen Foods IPO Opens Tomorrow: Here’s What You Need To Know  Click Here

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