Monday, September 19, 2011

Avoid to Prakash Constrowell IPO: MLR Securities

MLR Securities recommended investors to Avoid the issue.  MLR Securities says Prakash Constrowell Ltd is asking for valuations of 15.4-16.3 times FY11 EPS on a price band of Rs 130-138. P/BV is almost 2 times it FY11 book value of Rs 73 post issue.

Valuations are quite expensive when compared to its peers like Vascon Engineers which is trading at a market cap to sales ratio of 0.5, P/E of 9 and P/BV of 0.6. We recommend investors to avoid this issue.

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