You may not be permitted to kill a woman who has wronged you, but nothing forbids you to reflect that she is growing older every minute. You are avenged 1440 times a day.
Ambrose Bierce
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The cost of living is going up and the chance of living is going down.
– Flip Wilson
Looks like a good IPO to me
1) The offering is in the range of PE 15.5-17.7x which is attractive.
2) The company has shown strong growth 30% yoy (for past 3 years) and should continue to do so.
3) For the first quarter, it had a revenue of 587 crore and a profit of 106 crore which is a healthy profit margin. Plus balance sheet did not show an irrational rise in other income to temporarily raise the EPS.
4) The main promoter Mahindra group is a respected firm and should do good for the company
5) The major client British telecom (69% of revenue) has huge stakes in this venture, so is unlikely to leave the company in near future.
Cons:
1) huge reliance on one major client
2) high attrition rate, and the company is just another outsourcing firm.
Update: It got oversubscribed on the first day, and closed with an oversubscription of 70.15 times. Which is an history in itself. Finally a good response after a long lull in the primary market.
It is expected to be listed on 29th Aug.
