Galaxy Surfactants Limited: Brokerage Views & Run up to IPO

Galaxy Surfactants Limited
This post on Galaxy Surfactants Limited IPO tries to bring out consolidated brokerage views opinions, IPO Review / Analysis, Note/ reports and recommendation of brokerages , Analyst, Business New papers, Management views, Grey Market Premium, Subscription etc on Galaxy Surfactants Limited 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 Galaxy Surfactants Limited IPO or not.

Related Posts: Galaxy Surfactants Limited IPO Review
Subscription: Galaxy Surfactants Limited IPO  ( x times)
  QIB NII Retail Total
Day 3  54.27    6.96  6   20
Day 2    10.9    0.18  1.95   4.13
Day 1   2.71  0.01  0.43   0.99
Total Applications at close=                Application wise Subscription=
Galaxy Surfactants Limited IPO: Grey Market Premium etc.

30/10/18 Little activity is Grey Market
28/01/18 Grey Market Premium Rs. 180-200  Kostak Rs. 300-400

Complete Anchor List

Anchor Investors (AIs) portion in the Galaxy Surfactants Limited IPO 18,99,500 equity shares have been subscribed today by 25 AIs at Rs. 1,480/- per equity share. HDFC Trustee Company — HDFC Equity Savings Fund, ICICI Prudential Equity Income Fund, Abu Dhabi Investment Authority – Behave and HSBC Global Investment Funds – Indian Equity, Abu Dhabi, Kuwait sovereign funds, Max Life Insurance  etc. are some of the Anchor investors.

Click here for Complete Galaxy Surfactants Limited Anchor Investors List

Consolidated opinion of Brokerages, Analysts, Business New Paper Reports, Management Views on Galaxy Surfactants India Limited IPO .

Angel Broking: “ In terms of valuations, the pre-issue P/E works out to 29x 1HFY2018 annualized earnings (at the upper end of the issue price band), which is lower compared to its peers like Astra Microwave (trading at 36.2x ts 1HFY2018 annualized earnings). Further, AMSL has strong financial record and return ratios compared to Astra Microwave. Hence, considering the above positive factors, growth in the defence industry and lower valuations we recommend SUBSCRIBE on the issue. “

Capital Market: ” Score 43/100, The diluted equity share capital is Rs 35.45 crore of face value of Rs 10. EPS for FY 2017 works out to Rs 41.3. At the higher price band of Rs 1480, the P/E on FY 2017 diluted EPS is 35.9. There are no listed peers with such a business model and asset structure. “

Centrum Broking:  company has decent set of financials (FY14-17 revenue and PAT CAGR of 8% and 24%, respectively, EBITDA margins of 12%, RoE of 25% and positive free cash flows). “Given the decent financials and future growth prospects, the IPO could garner interest in the current market environment. Hence, we believe that despite fair valuations, the listing may still be at a premium to the offer price.”

Dalal Street Investment Journal
: ” Score 40/100; The company’s maiden IPO in 2011 was withdrawn as response was poor due to higher pricing of the issue. Considering the current IPO’s issue price which is offered, valuations look stretched. The company is not offering any fresh issue and, through the OFS, it wants to achieve only the benefits of listing. On the financial front, the growth in revenue has not been consistent. Profits are increasing but the PAT margin level is not so attractive. Investors are not expected to get much returns and thus subscription to this IPO can be avoided.

Hem Securities:The co is bringing the issue at p/e multiple of 35 on annualized H1FY18 eps at higher price band of Rs 1470-1480/share. Co being established global supplier to major FMCG brands with demonstrated track record has robust product portfolio & proven R&D capabilities with strong presence in high growth markets of India and AMET region. Looking after strong fundamentals & financial performance of co. , we recommend “Subscribe” on issue.”

Prabhudas Liladhar: “GSL, to our mind, is a unique business where entry barriers are high (R&D skills and building client relationship is key to gain market share which is a long drawn process). Further, bargaining power of the customer in this business is high as one deals with behemoths like HUL, Colgate, Dabur etc. Hence, for a new competitor to enter the market and achieve scale immediately appears tough. Thus, competitive risk is also low. Overall, we believe GSL is a perfect blend of good management, strong business dynamics and bright future prospects. We thus recommend a SUBSCRIBE”

Religare : “Going forward, the company intends to increase the share of Speciality Care products (35% of sales in FY17), as they offer higher margins compared to Personal Care products. It aims to increase its market share with strong sales network, diversified product base, well established relationship with its customers, focus on R&D and targeting new markets and customers. On financial front, its Net sales & PAT has reported CAGR of 8.5% and 24.4% over FY14-17, delivering substantial improvement in profitability margins on account of lower finance cost, lower depreciation cost and operational efficiencies. At the upper end of the price band of Rs. 1,480, the stock is available at ~35x FY18E annualized earnings.”

SMC : ” Rating 2.5/5, Considering the valuation at upper price band of Rs.1480, EPS and P/E of halfyear annualised FY2018 are Rs. 42.40 and 34.91 multiple respectively and at a lower price band of Rs. 1470, P/E multiple is 34.67; at upper price band of Rs.1480, book value and P/B of half year annualised FY2018 are Rs.200.31 and 7.39 multiple respectively and at a lower price band of Rs. 1470, P/B multiple is 7.34.”

SP Tulsiyan Website: “Extensive manufacturing capabilities, healthy earnings growth, consistent margins and reasonable pricing make the issue a subscribe. While listing gains is a function on market sentiments post budget, probability of the stock rewarding over the long term gains looks high. “

SSJ Finance: “Galaxy has reported a CAGR of 8.4% and 24.4% on revenue and net profit fronts respectively over FY2014-2017. On its upper band of price of Rs 1480, the issue is priced at PE ratio of 34.9x of its H1FY2018 annualised EPS of Rs 42.4. We believe that the IPO is fairly priced leaving a room for upside. Hence, we recommend to Subscribe to the IPO.”

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