Sunday 5 October 2008

20 Microns fully priced at issue price

Here is a verbatim transcript of Udayan's comments on CNBC TV18. Also see the accompanying video.

The 20 Microns is too small company. It has just about Rs 100 market cap. It is not a bad company in the minerals and minerals processing space, which supplies to the paints industry primarily. The only interesting subscription figure was that QIB, which has hardly bought it but retail was done 10 times. So, maybe this is small ticket items which will see lot of action on the first day.

It is possible that 20 Microns sees some kind of excitement because of the retail participation but it trades at about 12-time odd current years’ earnings and one could buy TCS at that price. So I don’t think valuations leave a whole lot on the table as such.

It is a decent company and in a decent space but almost fully priced out. And after initial excitement people will just forget about it. Smallcaps don’t have too much center of our mind space in this market right now.

Source: MoneyControl

No comments:

Post a Comment

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.